Which street is the most expensive to rent in Hoan Kiem Lake area?

The Hanoi People's Committee has just announced its agreement with the proposal to demolish the commercial center building at 1-3-5-7 Dinh Tien Hoang (Hoan Kiem) - commonly known as "Shark's Jaw", to build underground space.

Built from 1991 to 1993, the "Shark Jaw" building is located on a land area of ​​about 310 m2, including 6 floors. Of which, floors 2-5 are restaurants, cafes, floor 6 has a panoramic view of Hoan Kiem Lake.

This building is currently renting space to brands such as Aldo, Highlands Coffee, Vua cha ca, Laika cafe...

With a prime location opposite Dong Kinh Nghia Thuc Square, the left side facing Hoan Kiem Lake, the rental price of the "Shark Jaw" building is among the most expensive in Hoan Kiem district.

According to Hanoi's new land price list (applied from December 20, 2024 to December 31, 2025) which is the basis for calculating annual land rent, the highest commercial service land price belongs to Hoan Kiem district with nearly 244.3 million VND/m2.

This price corresponds to location 1, including Dinh Tien Hoang street, Hai Ba Trung street (from Le Thanh Tong to Quan Su), Hang Dao, Hang Khay, Le Thai To, Ly Thuong Kiet, Nha Tho street... determined based on profitability, infrastructure conditions and distance to access roads and streets.

Previously, Dinh Tien Hoang Street had the highest commercial land price of nearly 90.5 million VND/m2. Thus, the new land price list has increased nearly 2.7 times compared to before.

Meanwhile, according to a survey on some real estate buying and selling and renting websites, in 2023, the rental price at "Shark Jaw" is about 3.1 million VND/m2/month. If renting a 75m2 space, customers will have to spend about 230 million VND/month, about 2.8 billion VND/year.

In August 2023, the 11m wide, 75m2 store on the first floor of the "Shark Jaw" building was advertised for rent at VND 255 million/month, equivalent to VND 3.06 billion/year.

Some brokers specializing in inner-city real estate said that the rental price of the "Shark Jaw" building is currently not less than 100 USD per square meter.

According to a real estate service company, the rental price on the first floor of the building ranges from 60-200 USD/m2/month (about 1.5-5 million VND, excluding taxes and fees), equivalent to 180-500 million VND/month with a floor area of ​​100m2. The asking price and the contract price will have a difference, depending on the negotiation process between the tenant and the building owner.

Due to high rents, many businesses have come and gone. But there are also brands that have stuck around, such as Aldo and Highlands Coffee.

The price is not the highest in Hanoi

Despite its prime location, the rental price at "Shark Jaw" is still not the highest in Hanoi.

Previously, in 2023, market research company Cushman & Wakefield said that Trang Tien Street is the area with the highest rental price in the capital with an average of about 300 USD/m2/month (7.5 million VND/m2/month).

According to this unit, the area with the highest rental price nationwide is Dong Khoi Street (District 1, Ho Chi Minh City). In 2023, the average rental price here will be around 350 USD/m2/month (nearly 8.8 million VND/m2/month).

Faced with the recent wave of mass premises returns in Ho Chi Minh City and Hanoi, Ms. Hoang Minh Nguyet - Senior Director of Commercial Leasing Department of Savills Hanoi, said that there are two main groups of premises.

With prime locations for luxury brands, supply is always scarce, and tenants are even willing to pay high prices to get premises. But for normal commercial premises, the situation is different. Many premises that were once considered "gold" are now not attracting tenants. The main reasons are high rental costs, strict payment terms, especially large deposits and payments 6 months to 1 year in advance.

According to Ms. Nguyet, big brands still need physical stores to increase brand awareness, attract customers and combine direct and online shopping. In the current market context, brands need to carefully consider when choosing a location and be flexible in their business strategy.