Rent for industrial land on the rise thanks to Vietnam’s post-Covid reopening

PrimeBy Seen On May 3, 2022 | 05:14 PT

Aerial view of VSIP industrial park in Binh Duong, southern Vietnam, February 2022. Photo by VnExpress/Quynh Tran

Industrial parks in southern Vietnam saw a 9 percent increase in average ground rent prices in the first quarter compared to the same period last year.

A report on industrial real estate by the American commercial real estate services company Jones Lang Lasalle (JLL) revealed that the average price of land rent for industrial parks in southern Vietnam in the first quarter was 120 dollars per square meter, an increase of 9% year-on-year. year.

The price hike was due to a wave of new foreign direct investment in Vietnam after the country reopened after Covid, as well as growing demand from businesses to expand production.

Another report by real estate services company Colliers Vietnam found that the average rent price for industrial land in Ho Chi Minh City was $190 per square meter in the first quarter, with an occupancy rate of 90%. The rate at which land rent prices for industrial power plants in southern Vietnam are rising has been around 8 to 9 percent annually recently, he added.

The fact that HCMC’s industrial parks lack land for rent means that other surrounding areas, such as Binh Duong, Long An and Dong Nai, are attracting more investors. Industrial real estate areas such as logistics and workshops would see strong growth potential this year thanks to a rapidly developing e-commerce sector in major urban areas, according to the report.

An industry highlights report by real estate agent Savills said industrial parks saw the greatest potential in the property market during the Covid-19 pandemic and recorded the most impressive rate growth. rent and occupancy in the first quarter.

John Campbell, associate director of industrial services for Savills Vietnam, said that with the reopening of international air routes, manufacturers can now come to Vietnam to attend projects, sign contracts and establish facilities in Vietnam, among other tasks. . It promotes the rental of industrial land and workshops, he added.

Vietnam encourages businesses to locate in the country and offers tax incentives for technology, R&D, renewable energy and smart agriculture companies, Campbell said, adding that the move has given a big boost. to the growth of industrial real estate.


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