Despite being at the busiest trading area in Hanoi, many people living in the Old Quarter's streets are finding it hard to lease out their houses, even at much lower prices. 

Illustrative photo. Many people living in the Old Quarter's streets of Hanoi are finding it hard to lease out their houses, even at much lower prices

According to the owners, many kinds of business are being threatened by the on-going economic downturn.

On Tran Hung Dao Street, a 180 square metre house is being offered at VND200 million per month (USD9,500). Another VND400 square metre house in Hang Bong Street is leased at VND400 million while owner of a 700 square metres villa on Nguyen Du Street nearby is offering the villa at only VND480 million a month.

Average and small houses on streets near city centre such as Hang Dao or Hang Ngang can fetch the most handsome price at around VND200 million a month.

For example, residents of a house on Hang Dao Street have to pay USD7,000 per month for their use of 40 square metres and USD5,000 for the same floor area on Hang Duong Street.

Due to the high rental fees, many businesses have abandoned the Old Quarter in order to save money.

Trung Hieu, a resident in Ton Dan Street in Hoan Kiem District said he leased his villa for a non-government organisation at USD22,000 per month for two years. After they returned the villa, he has not been able to find another customer.

"The ad to rent the villa has been up for months now, I even lowered the price by USD3,000 but no one has bothered to call," he said.

Hang, a house owner on Hai Ba Trung Street also in the same situation, she said, "Though I lowered the rental fee from USD2,500 to USD1,800 but I still can't find customer. Business has been tougher than ever."

According to her, house owners on this street are being forced to lower prices or lose out. Moreover, the money they would lose if they fail to lease the house for several months is much higher than any reduction.

Pham Thanh Hung, vice head of Cengroup, a real estate consultant company in Vietnam, confirmed that the rental market is in deep slump and the house owners would need to lower the fees much more to please their customers.