HCM City (VNS/VNA) - Rents for commercial spaces in Ho Chi Minh City’s main streetshave been decreasing in recent months due to lower demand, according to experts.

Thin, a veteran housing broker in the city’s central area, said many landlordshave recently sought his help to find tenants.

But it has become very difficult, and they have to wait unless they slashrental by 10-30 percent, he said.

Property owners on some major streets have in fact reduced rents by 10-20 percentsince the end of last year, including some who have not been able to findtenants for a long time.

Phan Cong Chanh, director of Phu Vinh Group, a real estate company, told Nguoilao dong (Labourers) newspaper that there have never been so manyvacant properties as now.

For instance, on a short stretch on Tran Quang Khai street in District 1 thereare more than 20 premises available for lease, 20-30 percent cheaper thanbefore in some cases, he said.

Leasing has become difficult due to disadvantages in the market and the effectof the COVID-19 epidemic, he said.

Nguyen Hong Hai, chairman of Vina Office Company, said businesses that leasecommercial space and offices have restructured themselves and cut prices toretain customers.

"In my opinion, eateries and fast moving consumer goods shops, if they donot cut losses now, will continue to incur them for at least four tosix months before the market gets better.”

Small businesses in the food and beverage and fashion industries can onlysustain losses for a maximum of six months, and so if they do notsee bright prospects soon, should close down, he said.

Hoang, owner of a coffee shop on Nguyen Thi Minh Khai street in District 3,said he opened just three months ago and now with the epidemic, he was worriedabout what was in store.

“If I make losses for six to eight months, I will definitely go bankrupt, so Iam thinking of returning the premises to the landlord or releasing it."

Last month Hoang Lan of District 10 paid a deposit of 15 million VND (645.7 USD)to rent a house for opening a coffee shop.

She planned to open this month, but found that amid the epidemic fears manycoffee shops had little customers and so gave up the idea and agreed to forfeitthe deposit.

According to real estate experts, the commercial property market may notrecover until the third quarter of this year and so businesses and landlordsneed to lower rentals.

It is time for customers to look for new places in better locations and withmore reasonable prices, they said.

Hai said many tenants are willing to lose their deposit or three months’ rentthey paid in advance to find a better location.

Offices for lease also face the same situation, experts said.

They said many businesses are cutting costs and reducing personnel and so wouldmove to smaller places.

They forecast that grade B and C offices of 30-50sq.m area and with rentsbelow 20 USD per square metre would become popular soon./.