In 2023, a prolonged economic crisis will strongly affect all economic sectors. However, in the first 2 months of the year, the market for rent warehouse premises in Vietnam still maintained positive signals under the pressure of the market. So why is Vietnam’s market for warehouse premises for rent still able to withstand the wave of the global recession?
Newly expanded supply to meet skyrocketing demand in 2023
Currently, there are 84 industrial zones in the whole country with an almost complete occupancy rate; the rest are at 80%. Accordingly, Binh Duong is the province with the highest occupancy rate in the country, with 29 IPs reaching a 95% occupancy rate. Followed by Ho Chi Minh City, Hanoi, Dong Nai, Bac Ninh, and Bac Giang.
According to statistics, the area of industrial park land for lease reached 28,170 ha, up 1% compared to the previous quarter and up 12% over the same period last year. For ready-built factories, the supply reached 4,820,000 m2, up 17% over the same period last year. Ready-built warehouses witnessed a jump in growth, increasing by 39% over the same period last year, reaching 5,000,000 m2.
In Binh Duong, VSIP Group is implementing the construction of VSIP III Industrial Park according to the green and sustainable industrial park model. Area of 1,000 ha with a total investment capital of 6,407 billion VND in 50 years.
VSIP III Industrial Park was expanded, bringing a large supply to the Southern industrial real estate rental market
The Vietnamese market is still chosen by countries and businesses as a destination for the strategy of diversifying supply chains in the world. Especially in the field of high technology, Samsung has realized its plan to invest 2 billion out of 3 billion in Vietnam, proving this. Therefore, rental real estate projects will still attract a lot of FDI inflows. However, the big challenge for the Government and provinces is how to attract and retain investment capital in line with the general development strategy of the economy.
Rental warehouse premises in Vietnam begins to “cool down” according to the law of supply and demand
In 2022, the industrial real estate market will witness a disciplined increase in rents. However, in the last months of the year, the market’s stability caused factory rents in the southern region to decrease by 3% over the same period last year.
Specifically, in the fourth quarter, the average factory rent in the southern provinces was $4.6/m2/month. This is also a forecast about how the price warehouse premises in Vietnam will tend to decrease in 2023.
Leasing cost warehouse premises in Vietnam can be understood as a result of fluctuations in the production chain around the world. At the same time, the addition of new supplies to the ready-built warehouse market, mainly in Long An and Dong Nai, will cause rental prices to decrease accordingly. According to many experts, this situation is only short-term and can be expected to be overcome and grow again in the second half of 2023.
Read more: Why Invest in Vietnam?
Savills Vietnam specializes in providing a Vietnam warehouse space leasing service package, competitive price, transparent service, and a dedicated support team
Established in 2017, Savills Vietnam, with six years of operation in the field of investment and leasing of industrial real estate projects in Vietnam, has become one of the most prestigious units for customers to search for solutions to suit their businesses.
Savills Vietnam is proud to offer all-inclusive, cheap solutions for leasing warehouse space in Vietnam
In particular, the advantages of renting warehouse premises in Vietnam in industrial zones and major economic zones have brought potential investment projects to domestic and foreign investors in many fields. areas: processing, production, technology,… Therefore, Savills Vietnam’s rental or purchase fee is always the most competitive in the market, so businesses can optimize their initial investment costs.
Savills Vietnam is pleased to offer a team of highly qualified professionals, a comprehensive market database system, and a transparent consulting process to assist customers in understanding market changes and investment trends and appropriate funding.
You can refer to the following Savills Vietnam rental projects:
Ready-built factory for rent in Hai An, Hai Phong
– The whole area: 140,900m2
– Vacant area: 96,000 m2
– Price: Contact Savills Vietnam
Ready-built factory for rent in Hai An, Hai Phong
Factory for rent in Can Giuoc, Long An
– The whole area: 25,450m2
– Vacant area: 9,000 m2
– Minimum lease term: 3 years
– Deposit: six months’ rent
– Load: 2t/m2
– Ceiling height: 6 m
Price: Contact Savills Vietnam
Factory for rent in Can Giuoc, Long An
Ready-built factory for rent in Cu Chi
– Area of the whole area: 62,144 m2
– Vacant area: 28,000 m2
– Minimum lease term: 3 years
– Load capacity: 2 tons/m2
– Ceiling Height: 7.5–11 m
– Price: Contact Savills Vietnam
Ready-built factory for rent in Cu Chi
Conclude
The fluctuations of the global economic recession have had a strong impact on the development of the industrial real estate market in the United States. However, with the preparation and expanded resources from the supply expansion policies, the warehouse space leasing market in Vietnam still has positive signs.
If you are in need of renting warehouse space in Vietnam, please contact Mr. John Campbell at 0986.718.337 or our team of experts at Savills Vietnam for advice on suitable projects, maximizing profits, and optimizing costs.
You can refer to our industrial real estate projects here.
