Doing Business

Industrial land rents are rising due to high demand

Trường Lăng

June 2, 2022

Doing Business

Industrial land rents are rising due to high demand

Trường Lăng

June 2, 2022

Industrial land rents in Ho Chi Minh City have reached a new high of $198 per square meter per term, outpacing all other cities with a 90 percent occupancy rate.

It was followed by Hanoi at $140 and Da Nang City at $80, according to a survey by consulting firm Cushman Wakefield. The average rent in the southern region is $135, whereas the average rent in the northern region is $109.

Due to multinationals’ shift of manufacturing from China, northern industrial hubs are experiencing an average occupancy of 80%. The average rent in the central region is $34 per month, with a 67 percent occupancy rate.

Food processing, heavy industries, oil, energy, textiles, and footwear are the prevailing industries.

pexels life of pix

According to research by real estate firm Jones Lang LaSalle (JLL), rents in southern cities were $120 per square meter per term in the first quarter, up 9% year over year.

As the economy reopened, international corporations boosted their investment in Vietnam, causing the surge.

Colliers Vietnam stated that industrial land rents in HCMC have risen by 8-9 percent yearly in recent years, and businesses are moving to other southern cities such as Binh Duong and Long An due to a lack of space in Vietnam’s main metropolis.

According to Savills Vietnam, the government is pushing multinational companies to relocate their manufacturing to Vietnam, with a focus on high-value-added industries.

Despite existing barriers that can hinder efforts of foreign investors, Vietnam’s industrial real estate is predicted to be more active than ever in 2022, with limited land funds and government legislative backing. As real estate-related transactions are a complicated commodity, the parties involved must conduct extensive research and make specific strategies to assure long-term value. With an experience of more than 10 years in consulting, Viettonkin is one of the leading firms in the industry. In order to not miss out the golden time, do not hesitate to contact Viettonkin for amazing insights and guidance on this expanding market. Learn more about us and how we can help you minimize investment risk in the Vietnamese market here.

Source: VNExpress

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