Dinh Vu Industrial Park in Hai Phong (Photo: VNA) Due to short supply, rental prices for industrial land are expected to continueto rise by an average of 8-20% year-on-year in 2023, depending on the region,according to a report by the SSI Securities Corporation.
Last year, industrial real estate rents rose by an average of 10% due to highdemand, according to the report.
Trang Minh Ha, chairman of the North Stars Asia Company, said that in Vietnam,industrial real estate leasing has seen a hike in demand and rental prices,especially for logistics and warehousing.
The industrial land-for-rent market is likely to remain strong over the next 12months, she added.
Demand for industrial land has surged as the occupancy rate in industrial hubshas reached almost 100%, she said.
Many ready-built warehouses, factories and logistics and data centres are beingbuilt in industrial parks (IPs) across the nation, she added.
The average rent for industrial land in the southern region was 159 USD persquare metre in the last quarter of 2022, up 3% over the previous quarter and10% year-on-year, according to global real estate services firm Cushman andWakefield.
The highest rent in Ho Chi Minh City was 300 USD per sqm. The occupancy rateincreased to 92% from 91%. The average rent in Binh Duong and Long An provinceswas 180 USD.
According to the Ministry of Planning and Investment, Vietnam has 292industrial parks with a total land area of 87,100ha and 106 more are underconstruction.
They are home to some 10,000 domestic companies and 11,000 foreign-owned firmsthat have invested over 340 billion USD.
Vietnam continues to be an appealing destination for industrial real estateinvestors, according to Cushman and Wakefield.
The firm attributed this to the country’s stable growth rate, anexport-oriented economy, a young labour force, investment incentives, astrategic location and a positive economic outlook./.
VNA
