According to JLL Vietnam, "non-retail" businesses are not outside the "wave" of hunting for old buildings. Old buildings in Saigon are quite busy with the presence of startups and the need to find nostalgic restaurants of millennials.
This research unit said that, in the context of the real estate market shortage of supply, more and more investors are eyeing the old style real estate in the city center. The value of these old buildings is huge.
Currently, in big cities there are many old buildings. According to JLL, the upgrade and reuse of these properties create opportunities for new investors to enter the market and increase the value of real estate. Old buildings may no longer fit the needs of the present, but once these buildings are properly modified they will create attractive destinations.
Thanks to a long tradition of history, Vietnam's large cities possess a sizable number of heritage buildings, and large alleys result in smaller and narrower alleys. If the previous generation always prioritized the fronts of the retail business, today's generation is quite interested in the old places in the alley. Thanks to the nostalgic trend of young people, big cities in Vietnam are witnessing a strong recovery of old-style buildings, instead of having to dismantle to build a new building.
For example, long-standing apartment buildings on roads like Ton That Thiep and Nguyen Hue in District 1, Ho Chi Minh City have always had a steady flow of people and won the hearts of young people over the years. Recently, thanks to the emergence of a series of cafes and eateries with minimalist, ancient, unique décor, the narrow but quaint staircase stairs, along with many small clothing shops inside makes the very attraction of the old apartment buildings.
This creates value for the old style real estate, meeting the needs of young people and the tourism industry.
According to JLL, businesses "non-retail" are not outside the "wave" of hunting for old buildings. For example, shared office Toong has successfully transformed many unused spaces in old buildings, bringing modern and traditional breath into the workplace. In Vietnam's big cities, the once-forgotten "old" buildings are also busy with the startups' presence and the need to find nostalgic eateries of millennials.
However, not all old buildings have been successfully restructured. Good location is a prerequisite for the success of this model even if the original function of the building is no longer suitable to the current needs. Old buildings with quality structures and flexible floor space are a great advantage for reuse.
In addition, safety is indispensable for investors who want to participate in this segment. Many old buildings are gradually degraded, damaged by systems, insects and moisture. The absence of building management and any lack of fire protection equipment is a very dangerous threat.
Therefore, investors need to consider safety issues for the building seriously, must be aware and understand all the problems of the building before re-operating.
Besides, according to JLL, investors also need to hurry and create new models to be able to catch up the trend when the price is still affordable.
According to Ha Vy