Set as Homepage    Add Favorites

The asking price of industrial land in the South sets a new peak
Date: 7/21/2022 5:10:50 PM
Industrial Park Vietnam, In Ho Chi Minh City and Long An, the asking price of industrial land jumped to 270-290 USD per m2 for the whole rental cycle, the highest ever.

The latest report of Cushman & Wakefield shows that industrial land rents in 5 industrial capitals of the South have established new ground in the second quarter of the past. In the industrial land segment alone, the highest asking price of 5 key provinces in the South shows that Ho Chi Minh City has a mark of USD 270 (6.4 million) per m2 for the whole rental cycle. This price does not include management fee and value added tax.

Long An also suddenly recorded an industrial park that surpassed Saigon when the asking price for land reached a peak of 290 USD (6.8 million) per m2 for the entire lease period. And Binh Duong, Ba Ria Vung Tau and Dong Nai respectively recorded the highest asking prices for industrial land in the past 3 months at 110, 180, 195 USD per m2 for the whole lease period.

Cushman & Wakefield added that, although asking rents skyrocketed in the second quarter, there are actually very few industrial parks reaching this peak (usually only falling into the group of industrial parks with prime locations, lower high standard technical floor, convenient traffic connection). Looking at the whole market, the average rental price of industrial land in the entire Southern region (including Ho Chi Minh City and the Southeast provinces) in the last quarter fluctuated in the threshold of USD 135 per m2 for the whole rental cycle.

Meanwhile, according to CBRE Vietnam, the industrial land rental market in the second quarter of the South with 5 representatives: Ho Chi Minh City, Binh Duong, Dong Nai, Long An, Ba Ria-Vung Tau increased the average rent by 8- 13% over the same period last year. In particular, a number of typical industrial parks of the South achieved a 26% increase in rental rates in the past 12 months.

Tan Tao Industrial Park, Binh Tan District, Ho Chi Minh City has an area of ​​​​nearly 200 hectares.  Photo: Quynh Tran

Tan Tao Industrial Park, Binh Tan District, Ho Chi Minh City has an area of ​​​​nearly 200 hectares. Photo: Quynh Tran

Ms. Thanh Pham, deputy director of CBRE Vietnam’s Research and Consulting Department, said that orders for pre-lease commitments in newly put into operation industrial parks in the South are quite active. The demand for leasing industrial land, warehouses and workshops is increasing in many fields and industries. Customers who commit to renting in advance often have the advantage of negotiating better terms in the context that developers tend to continuously increase the asking price in the past time.

Speaking to VnExpress , Ms. Huynh Buu Tran, Managing Director of Vietnam Industrial Parks, confirmed that the number of businesses wishing to expand production scale in southern industrial zones increased sharply in the first half of this year. This development has caused the asking price of industrial land to set a new price level in the last quarter.

According to Ms. Tran, there are two main reasons for the increase in the asking price of industrial land in the South. Firstly, the rental demand is large and the market size is constantly growing along with a strong wave of production displacement. Secondly, because more and more primary and secondary investors are jumping into the southern industrial zone market. When there is a large demand for searching and acquiring industrial land funds for the business of leasing land, factories, and warehouses, the rental price has increased.

Ms. Trang Bui, CEO of Cushman & Wakefield, said that this is an area that has developed industrial capitals very early compared to the national average, so the rent is high. Thanks to being one step ahead of the North and Central regions, plus being associated with the most vibrant urban area in the country, Ho Chi Minh City, industrial real estate in the South has always been the center of attraction for manufacturers and investors. domestic and international.

According to Ms. Trang, the industrial real estate market in the South is entering a new growth cycle in terms of both rents and demand in 2022. In addition to the strong development of industrial real estate, residential products. logistics, the logistics area dedicated to e-commerce in the southern provinces will also continue to grow strongly from now to 2025.

CEO Cushman & Wakefield analyzed that industrial zones in the South play a special role not only for the domestic supply chain but also an important link with the global supply chain. The South consists of 17 provinces and cities, in which, Ho Chi Minh City is a vibrant economic area and a favorite destination for new investors who want to enter the Vietnamese market. With about 110 wharves, in which, gateway ports combined with international transshipment have been formed in Ho Chi Minh City and Ba Ria - Vung Tau, this area has large-scale specialized wharfs associated with industrial parks, inter-connected industrial parks and industrial zones. metallurgy, petrochemical refining, thermal power center.

According to the Vietnam Maritime Administration, the volume of goods through the seaport in the first 6 months of 2022 reached nearly 370.8 million tons, up 2% over the same period in 2021. In which, Ho Chi Minh City contributed 67.2 million tons. and Vung Tau is 46.9 million tons. The volume of goods by container through the seaport reached 10.5 million TEU (a unit of measurement of container cargo capacity) up 2% over the same period in 2021.

Particularly, Cai Mep - Thi Vai seaport cluster has successfully received the Margrethe Maersk super container ship with a tonnage of up to 214,000 DWT (the unit for measuring the safe transport capacity of the ship in tons) and a carrying capacity of up to 20,000 TEUs, 399.23m long - 59m wide, amid the raging pandemic...

With the above advantages, industrial real estate in the South faces great opportunities for breakthrough, not only striving to become a center for transshipment of goods in the region and the world, but also combining with high energy and energy, Ms. Trang forecast. domestic production capacity to become an integral link in the global supply chain.

   Other news
Homepage | News | Search | Comparison| Terms Of Use | Contact | User

HO Add: 62L/36 Nguyên Hồng, Ward 11, Bình Thạnh District, HCMC - Vietnam
Biz Office Add: #48 Road No 11, Quarter 6, Hiệp Binh Chánh Ward, Thủ Đức, HCMC - Vietnam
®Source: should be clearly quoted for any use of information extracted from our website.
Publication permit No: 60/GP-TTĐT , April 05, 2010.