The industrial real estate market in Ho Chi Minh City continued to grow in 2023, driven by strong demand from manufacturing and logistics companies. According to Savills Vietnam, the average occupancy rate for warehouses in the city was 85% in the first half of the year, up from 80% in the same period of 2022.
With the increasing demand for warehouse rental but limited land funds, the price and quality of warehouse for rent in Ho Chi Minh City have reached the highest thresholds in the southern region. However, warehouses in the city still have outstanding advantages in terms of economy, costs, and operations that many businesses can’t turn away from when participating in the southern market of Vietnam.
An Overview of Warehouse for rent Ho Chi Minh City in 2023
In 2023, the industrial real estate sector in Ho Chi Minh City is undergoing a remarkable upswing, propelled by fervent interest from foreign investors and local enterprises. According to data from Savills, the utilization rate of industrial parks within the city has surged to 90%, with warehouse rental rates marking a substantial 10% year-on-year ascent.
This growth trajectory is underpinned by several influential factors:
The main drivers of this growth are the following:
– Ongoing Production Shift from China to Vietnam: A notable migration of manufacturing operations from China to Vietnam is in progress. Foreign firms are capitalizing on Vietnam’s advantageous labor costs and business-friendly environment by relocating their production facilities.
– E-commerce Sector Advancement: The rapid evolution of the e-commerce landscape is also fanning the flames of demand for warehouse space in Ho Chi Minh City. E-commerce entities necessitate warehouses for efficient product storage, seamless shipping, and swift deliveries.
– Infrastructure Advancements: The government’s investments in Ho Chi Minh City’s infrastructure, including roadways, bridges, and ports, have streamlined the transportation of goods and raw materials. This infrastructural progress has further bolstered the demand for warehouse facilities.
Anticipated to persist in the years ahead, the robust demand for warehouse space is projected to intensify. Savills’ projections indicate that by 2025, industrial park occupancy within the city will likely reach 95%, accompanied by an additional 15% surge in warehouse rental prices.
Key trends characterizing the Ho Chi Minh City warehouse rental landscape in 2023 include:
– Demand for larger warehouses: The requirement for more spacious warehouses has ascended in tandem with the growing dimensions of shipments.
– Demand for warehouses in suburban areas: Suburban warehouse locales are gaining traction as businesses seek respite from the elevated rents prevailing in the city center.
– Demand for climate-controlled warehouses: Warehouses equipped with climate control systems are experiencing heightened demand, attributed to the storage of temperature-sensitive merchandise.
For those considering warehouse for rent in Ho Chi Minh City, early action is imperative. The market’s competitiveness coupled with limited space availability underscores the necessity for proactive engagement. Additionally, readiness to invest a premium for prime location space is advised.
Outstanding standards of warehouses in Ho Chi Minh
Most of Ho Chi Minh City’s warehouses are built in areas with developed infrastructure to meet the needs of businesses. Depending on the type of warehouse, there will be certain standards to ensure safety when using: power supply, water supply, drainage system, fire protection, emergency exit, and convenient traffic for the operation of enterprises.
For example, chemical warehouses will ensure safety principles on fire and explosion risks and classify chemicals to ensure they do not cause dangerous chemical reactions in warehouses. In particular, they will have to comply with the standards specified in TCVN 2622:1995.
Service in Ho Chi Minh City is evaluated at a high level of perfection and quality, so when renting a warehouse in Ho Chi Minh, you will receive the following 5 benefits:
– Ho Chi Minh City is one of the economic centers of Vietnam, with a large population, many businesses, and large purchasing power, making it convenient for business development.
– Abundant and highly skilled labor resources can meet all jobs from basic to highly specialized stages, helping businesses build a quality workforce.
– Optimization of time to go into operation: renting warehouses and workshops Enterprises can go into operation immediately after signing the contract, saving time and ensuring production and business efficiency.
– Ho Chi Minh City has a system of seaports, highways, airports, etc. to meet the needs of inter-provincial and international freight, saving costs and time for the distribution system.
– A warehouse for rent in HCMC has many support services, reducing the burden of loading, containers, security, trucks, management,…
Read more: The factory market for sale in Vietnam is a bright spot for industrial real estate in 2023
Industrial Savills Vietnam offers flexibility in land usage, caters to diverse requirements, and ensures top-notch quality
Savills Vietnam is a leading corporation specializing in providing solutions for warehouse for rent Ho Chi Minh City, with full consulting services and extensive market experience from leading real estate experts to assist you in finding a rental solution that fits your budget, size, and desired location.
With a team of experienced consultants, we provide a professional and transparent consulting process to help customers understand the service and thoroughly solve problems for customers who rent warehouses or factories in Hanoi, Vietnam.
Savills Vietnam has a lot of warehouses in Ho Chi Minh spread throughout the districts, especially near arterial roads, helping businesses to conveniently transport goods and save costs. You can refer to some of our warehouse projects below:
+ Area of the whole area: 11,915 m2
+ Minimum lease term: 3 years
+ Load capacity: 1 ton/m2.
+ Ceiling Height: 4 to 4.5 m
+ Contact Savills Vietnam for pricing.
+ Area of the whole area: 62,144 m2
+ Minimum lease term: 3 years
+ Load capacity: 2 tons/m2
+ Ceiling Height: 7.5–11 m
+ Contact Savills Vietnam for pricing.
Read more: Data center in Vietnam: The inevitable investment trend in the industrial real estate industry in the next 5 years
The strong growth of the industrial real estate market has opened up many opportunities for warehouse leasing/buying services in Ho Chi Minh City. However, businesses still face many challenges in terms of their ability to meet demand, and the rental price is higher than in the suburban areas. In addition, the city’s industrial real estate has always been a potential market for businesses in many different fields and industries.
If you are in need of advice on warehouse for rent Ho Chi Minh City, please contact us immediately, either Mr. John Campbell via our hotline: 0986.718.337 or Savills Vietnam’s senior team of experts, for detailed advice on types of warehouses and prices suitable for your finances.
In addition, you can refer to industrial real estate projects at Savills Industrial here.