Southeast Asia is a desirable area for industrial investors because of its favorable geographic, governmental, economic, and demographic characteristics.
Average warehouse price in Southeast Asia among different countries
Why is the leasing price of warehouses in Southeast Asia increasing?
Industrial real estate has become an attractive investment industry across the world. It is believed that the Southeast Asia region can appeal to big investors due to its high growth potential based on strong long-term demand drivers and robust fundamentals. The rising trend of prices is expected to continue through 2022 since the Southeast Asia warehouse sector is the new key logistics hub in the world.
2021 experienced the positive leasing rate and rental growth of the warehouse industry in Southeast Asia. The development of the warehouse price in Southeast Asia is attributed to e-commerce expansion. However, this is not only an e-commerce story, but it is also righ timing. With the probability of medium-term inflation, the sector offers the industrial real estate investment opportunities for appealing income yields.
Inter-and intra-regional commerce is also predicted to expand, while the proportion of total consumer purchases made online is expected to rise. These reasons, when combined, have raised demand for warehouse space among e-commerce and logistics firms. Moreover, the growth of knowledge-based sectors such as biomedical and information technology could sustain occupier demand for high-tech warehouse space in certain areas.
Average warehouse price varies among Southeast Asia countries
Although the entire Southeast Asia region has high potential to develop as the new logistics hub, there are some countries that meet the requirements. As a result, the warehouse price in Southeast Asia is different among countries. Malaysia, Indonesia, Vietnam, and Thailand are undergoing economic transformation in the area with the increase in warehouse prices in Southeast Asia.
The average warehouse price in Vietnam is approximately $5 psm per month, lower than that of Indonesia (~$5.4), Malaysia (~$6) and Thailand (~$4.35). It is expected that in the future, when logistics space in Southeast Asia is sought after by foreign investors to expand their business, the warehouse price in Southeast Asia will increase sharply.
Savills Vietnam is Providing the Best Warehouse for Lease in Vietnam
Savills Vietnam is proud to be the most reliable warehouse provider in Vietnam—the fast-growing country in Southeast Asia—with attractive prices and high-quality warehouses.
Total area: 5,300m²
Vacant area: 4,000m²
- Location: Highway No. 1A. Convenient connections to airports and ports—minimizing transportation costs.
- Supportive government policies
- Large population
- Attractive tax incentives
- Suitable for high-tech industries and chemical businesses.
Total area: 120,000 m²
Vacant area: 70,000 m²
- Skilled and abundant workforce
- Well-designed which optimizes efficiency in both design and storage processes.
- LEED Gold Certification.
- Modern facilities
Total area: 38,411m²
Vacant area: 5,888m²
- Five national highways surround it.
- Dong Nai is a developing FDI destination and is located in the Southern Key Economic Zone (SKEZ).
- CCTV and modern security measures
- 3 to 5 year lease term
Ideal for light industries, assemblers of electrical and electronic equipment, and producers of plastic products.
In most areas, the rise in e-commerce, particularly in light of the pandemic, is driving up demand for warehouse space. They anticipate that in the next few years, the price of warehouse space in Southeast Asia will rise further.
Savills Industrials is honored to be Vietnam’s worldwide industrial real estate services provider. In the present economic climate, we are eager to assist our clients in determining whether renting or purchasing their storage facility or industrial property is the best option. Through a team of top specialists in Vietnam, we provide excellent consulting services from seasoned individuals with in-depth industry expertise. Call Mr. John Campbell right now if you wish to lease a small warehouse with the help of professionals!