Shophouse investment: Experience choosing the 'golden position' in just 60 seconds

If in the retail business, the most important factor is 'location, location, and location', then shophouse investment is no exception.

Shophouse investment is currently one of the attractive profitable real estate channels with prime location, high liquidity. Right now, let's learn about the shophouse type and investment experience with the Hochiminhrental real estate connection platform.

Learn about the type of shophouse in Vietnam

A shophouse is a type of real estate that is a combination of a business store (shop) and a house (house). In Vietnam, shophouses are also known by many people as commercial townhouses or adjacent townhouses. 

Invest in a shophouse in the Sala Ha Dong urban area

According to Decision No. 42/2005/QD-BXD on "Townhouses - Design Standards" issued by the Ministry of Construction on November 29, 2005, shophouses are also known as townhouses. Specifically, townhouses are defined as adjacent houses, built-in street axes, commercial and service areas according to planning approved by competent authorities. In addition to the function of living, the adjacent townhouse is also used as a business and trade store, office services, inns, hotels, small production facilities...

With just 60 seconds, immediately experience the shophouse investment 'golden position' from an expert

Here are 4 golden experiences in shophouse investment you absolutely must know before "investing capital".

Experience 1: Anticipate target customers when investing in a shophouse

Before deciding to choose a project to invest in a shophouse, you need to determine who is the expected target customer when put into operation? At the same time, determine the number of people expected to serve, the ability to pay, the shopping behavior of customers...

 Even if the investor decides not to do business directly, but buys a shophouse for sublease, it is even more important to consider this. The more business options you have for the shophouse, the better the investment will be. They will be the solution to help you convince your future customers (your sub-tenants) effectively. Usually, with isolated urban areas or far from the center, the residents of this urban area are your target customers because they can walk to shop as the most convenient option. In addition, the residents around the project with a radius of 5km can also be your potential object.

Thus, the main thing to do is to make a preliminary assessment of the residential community inside and outside the targeted project. This will give investors an overview as well as be more proactive in business orientation before depositing the project.

Experience 2: Determine the number of shopping centers within a radius of 3km around the shophouse investment area

Considering this factor helps shophouse investors foresee the competitive landscape if investing here. The fewer shophouses, shopping centers, and shopping malls in the planned investment area, the less competitive pressure will be on renting shophouses. If you analyze further, you can consider your intended business, specifically in terms of business lines. At the same time, it is advisable to investigate more closely about competitors with the same or close to the expected product.

Experience 3: Is the shophouse location near famous shopping and resort destinations?

The proximity to famous areas with 'local brands' is likely to attract more future customers for shophouse investors. Therefore, you also need to take into account the characteristics of the number of visitors you can attract and determine whether they are your target audience or not?

If you are going to invest in a shophouse in Hanoi, you can refer to the projects of the old quarter to attract foreign tourists and provincial tourists; Nghia Tan - Cau Giay food court or Ton That Tung, Chua Boc, Nga Tu So attract young people in the city), In addition, you can refer to good communication projects, which are of interest to the community such as Royal City, Time City,…

Experience 4: The location of the shophouse is convenient for traffic, is the infrastructure good?

Finally, investors need to survey the surrounding areas to understand where shophouse investment has:

• Near bus station, bus station, sky train,…
• Is there parking for cars and motorbikes for customers to shop?
• Is it near congested traffic areas?
• Is there a forbidden road, a one-way street?
• Is there a flood area, power failure, etc.?
• How can security be ensured?

In the retail business, there is a famous saying: "The top three important factors of a store are 'location, location, and location'" and shophouse investment is no exception. A good shophouse will be a convenient place for traffic, convenient for buses, motorbikes, cars to come and park and park flexibly. Good luck!

N.Bich ( General )