SHOPHOUSE - TRENDING BUSINESS MODEL AND HIGH ECONOMIC POTENTIAL

SHOPHOUSE - TRENDING BUSINESS MODEL WITH HIGH ECONOMIC POTENTIAL

1. What is Shophouse?

Shophouse is also known as commercial townhouse. This is a type of real estate product that has a combination of many features and uses for the owner. Shophouse is a model of housing combined with a business store. A type of apartment that can be used as a house and as a business premises, or  can be rented for business. These shophouses are usually built in urban areas, located in front of major roads or on horizontal and vertical roads with beautiful landscapes, creating a harmony between natural beauty and modern architecture. Shophouses, mainly for business purposes, are meticulously built and located in densely populated areas with many passersby. Shophouse is present in many parts of the world and is the most popular business model in developed cities.

Shophouse is the business model of the new economic era.

2. History of shophouse

Shophouse is now avalable in many provinces and cities across the country and has become a trending business model that is gradually gaining popularity. Historically, shophouses have been around since the 19th century. Known more commonly in developed countries and introduced into Southeast Asian countries during the colonial period. Shophouses of this period were built in large numbers, bearing the style of Latin American countries. Shophouse model in recent years has increased rapidly according to the development of urban areas. Currently, this is a new investment trend with strong attraction in the market. In Vietnam, Phu My Hung urban area is the place where the first shophouse has been invested since 1998. This place has become a recognized model urban area helping to form a new lifestyle for city people. In the early 2000s, other urban areas appeared in Hanoi one after another.

3. Characteristics of shophouse

Shophouse possesses features that highlight the function and purpose of use of this model.

About location: commercial townhouses are built in residential projects, urban areas with complete planning, synchronous infrastructure and located on main internal roads.

About the design:

• Shophouses are usually built in vertical rows, located adjacent to each other on a street, there’s no gap between shophouses 
• Shophouses are usually low, from 2-3 floors.
• The shophouse's facade is not too wide, but instead the shophouses are built with depth inward.
• Various functions and uses.
• The ground floor of the shophouse is usually used as a business store, sometimes for business use on all floors.

Shophouse is a business model that helps to concentrate stores into a unified and neat shopping area. Usually located in projects and urban areas, when doing business at shophouse, business owners own an available and stable customer source. People living in that urban area can access utilities quickly and save time.

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Shophouse is now available in urban projects.

4. Advantages and disadvantages of shophouse

Advantages

Shophouse has a prime location: shophouses are built in very convenient places such as: located on the ground floor of large apartments, service-commercial center area, street frontage, crowded residential areas with high demand of consumption. These positions help investors receive revenue when doing business.

Convenient transportation: shophouses are often located in apartment buildings with street space for parking on the roadside, customers can quickly shop without having to spend time looking for a parking place at a distance. Stores may also be located near the entrance to the building.

Architecture and design: with the architecture of low-rise apartments from 2-3 floors. Shophouses can be used to open stores that sell different products. In addition, due to the multi-functionality of the shophouse, people can rent it out as an office, a direct transaction room,...

Limited quantity: the number of shophouses built in projects usually accounts for only 2-25%. Shophouse owns a convenient location, available customers and small number to help reduce competition when opening a business store of investors. The market value of this business model also has great potential.

Investment opportunity: Shophouse is a real estate product that is considered a new investment trend today. Urban projects are built for this type of product. Projects belonging to famous investors such as Novaland, Sun Group, VinGroup, ... bring prestige for quality and guarantee of advantages in the future.

Disadvantages

High transaction price: shophouses often have high prices because of the advantages that this product possesses such as investor, project size, location and architecture.

Length of ownership: owners of these shophouses typically have a 50-year legal term of ownership.

Dependence and residential community: shophouses are built fixedly in one location and concentrated in blocks, people with business needs need to choose a potential urban project with a dense population to invest in shophouse.

5. Advantages of renting a shophouse in District 2

District 2 is currently being invested by many investors in the construction of residential projects with a large number. The number of shophouses also increased significantly. This place gradually attracts many new residents to live because of its outstanding development in recent years. Therefore, shophouse business in potential projects helps investors access potential and sustainable new markets.

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Investing in shophouse is a trend for many businessmen.

Notably, the layout of the Thao Dien area is preferred because of the stability of the residential community here. Investors can lease Thao Dien business premises to increase profits instead of opening their own shops. However, the shophouse products here also have a high price, so many investors are still cautious in investing their money. In addition to the premises for lease in District 2, Thao Dien, new areas such as Thu Thiem, Diamond Island,... are potential new urban areas in the future with a diverse number of products and high potential benefits