Facing the situation that the industrial land fund in the economic centers is exhausted and the occupancy rate of IPs is high, the Government has licensed new industrial zones to supplement the supply to the market. However, the increasing demand has caused Vietnam land lease price to fluctuate strongly and is forecast to peak in the second half of the year.
The industrial real estate market adds new sources of supply
The industrial real estate market has had positive changes when many new industrial projects have been licensed to build, adding new sources of supply to the market.
The supply of real estate in the North has changed strongly. If in 2021, Bac Ninh leads with large industrial zones, at present, Hai Phong has risen to the top in industrial land supply thanks to the Deep C Hai Phong III project, with a total area of 520ha.
At the same time, in Hanoi, the land fund is almost exhausted and the occupancy rate is high, so businesses tend to move to neighboring provinces. The focus is on Hai Phong, Hai Duong, Thai Nguyen,…
The supply of industrial real estate is supplemented when many IPs are licensed for establishment
In the southern region, the industrial real estate market is also active when many new industrial park projects are opened to expand the supply for Southern enterprises. Specifically, Cay Truong Industrial Park with an area of 700 ha, VSIP III, 1,000 ha in Binh Duong; Nam Tan Tap Industrial Park with an area of 245 hectares, and Tan Tap Industrial Park with an area of 645 hectares in Long An.
Ready-built warehouse projects are also expanded in the area to serve the demand leasing and buying land in Vietnam. Prominent are projects in Binh Duong and 13.6 hectares of factories in Ho Nai Industrial Park, Dong Nai, but the rent is only approximately half of the projects in the city. HCM.
In addition, in the first half of 2022, the Government has approved the establishment of 9 new industrial zones, with a total area of 2,471 ha and a total investment capital of 29.4 thousand USD. These new IPs will be put into operation in the period of 2023–2025, to expand the land fund to serve business needs and facilitate attracting investors.
Land rental prices in Vietnam are forecast to continue to peak in the second half of the year
Despite the addition of many new sources of supply, the high occupancy rate and leasing industrial land demand have resulted in a sharp increase in Vietnam land lease price.
In the Northern region, more than 80% of ready-built warehouses and workshops were recorded in Hanoi, Hai Phong, Bac Ninh, and Hai Duong provinces. Accordingly, the average land rent increased by 5–12%, even in some economic hotspots where the growth rate reached 20%.
The southern region recorded the highest land rental rate in Vietnam in the first half of 2022. Accordingly, Ho Chi Minh City recorded fsan average rent of 180-300 USD/m2/lease cycle, setting a record level in the industrial real estate rental market. Following that, the Long An industrial land rental rate is 125-275 USD/m2/lease period, Dong Nai recorded the rent at 100-200 USD/m2/lease cycle, and Binh Duong is at 100-250 USD/m2/rent cycle.
Land rental price reaches 300 USD/m2/lease cycle in HCMC area
The strong growth of land rent can be explained for the following main reasons: Firstly, the growth of e-commerce platforms has promoted the development of domestic and foreign logistics industries to meet the needs of freight transportation. chemical. Second, the shift of production lines from other countries to Vietnam has created a demand for monthly lease land Vietnam, especially for warehouses and workshops. Third, the trend of suburban real estate development when the land fund in large economic centers is not enough to meet the needs of enterprises.
The above factors partly promote the strong recovery of Vietnam’s economy after the pandemic, but also create many challenges for businesses.
Read more: Small Industrial Space for Lease in Vietnam: A Cost-Optimized Solution for SMEs
Savills Vietnam specializes in leasing Vietnamese land by owner, with full legal procedures
Savills Industrial, with a network in 70 countries and more than 39,000+ countries, creates synergies with its global network and market insights and experience, which has increased connectivity between solutions for lease with businesses. This also creates the advantage of Vietnam’s most competitive land rent in the market.
With full service in investor consulting, market research and investment brokerage, sale and sublease of warehouses, premises,… Savills Vietnam easily provides specific research possible to ensure that non-previous variables are also quantified to maximize the success rate of projects and investments.
Savills Vietnam specializes in providing the cheapest industrial land leasing solution in the market
In particular, Savills Vietnam has succeeded in many big deals in the market, such as: introducing JV to a platform worth more than 141 million USD, the largest commercial real estate sale-leaseback transaction in Vietnam with more than 36,000 GFA, … Savills is a partner of many large corporations doing business in Vietnam, such as: Shopee, Board-Ocean, Medtronic,…
Some industrial land projects with very attractive industrial land’s pricing in Vietnam can be referred to:
Industrial land for rent in Ninh Binh
+ Location: Gia Vien, Ninh Binh
+ The whole area is 50 ha.
+ Vacant area: 20.42 ha.
+ Land use term: 2065
+ Price: Contact Savills
Industrial land for rent in Gia Vien Ninh Binh
Industrial land for rent in Phan Rang, Ninh Thuan
+ Entire area: 407 ha
+ Vacant area: 50ha
+ Price: Contact Savills
Industrial land for rent in Phan Rang, Ninh Thuan
Industrial land for rent in Tay Ninh
+ Location: Go Dau, Tay Ninh
+ Entire area: 1020 ha
+ Vacant area: 180ha
+ Deposit: 10% of the total rent
+ Price: Contact Savills
Industrial land for rent in Go Dau, Tay Ninh
Industrial land for rent in Long An
+ Location: Ben Luc, Long An
+ Entire area: 369 hectares
+ Vacant area: 88ha
+ Deposit: 20% of the total rent
+ Price: Contact Savills
Industrial land for rent in Long An
Read more: Warehouse or factory for lease in Vietnam, a promising market for investors
Conclusion
The industrial real estate market has been supplemented with new sources of supply to meet the market’s needs, but land rental rates are still growing strongly, especially in Hanoi and Ho Chi Minh City. HCM. Therefore, real estate in the suburbs is also gaining momentum with newly opened IPs but extremely affordable prices, providing many choices for businesses.
If you are in need of advice on Vietnam land lease price, please contact Mr. John Campbell via hotline: 0986.718.337 or our experienced agents at Savills Industrial Vietnam, to be provided with industrial land leasing solutions across the country with the size and development orientation of enterprises.
In addition, you can refer to Savills Industrial’s industrial real estate projects.
