Southern Vietnam sees surge in industrial land prices

Ho Chi Minh City had the highest rent at $182.3 per square meter per lease term, followed by Long An ($133), Dong Nai ($98), Binh Duong ($88) and Ba Ria-Vung Tau ($80), according to a recent report by real estate service firm Jones Lang LaSalle (JLL).

The cost of ready-built factories was more stable than land at $3.5-5 per square meter per month due to short-term contracts of between 3-5 years and the impacts of the Covid-19 pandemic, the report says.

Even though businesses were affected by the pandemic, market studies showed industrial real estate in Vietnam still attracting many enterprises and investors.

In the second quarter, the south of Vietnam had registered a total leasable land area of 25,045 hectares. Some of the remaining industrial real estate in HCMC was not available for leasing since compensation payments related to site clearance had not been completed.

Because the pandemic is still happening locally and globally, leases in the second quarter were mainly from domestic investors or deals reached before the outbreak. The average occupancy rate of the southern industrial parks reached 84 percent by the end of the second quarter.