Industrial land rents go up in south

By Vu Le   February 9, 2023 | 03:23 pm PT
Industrial land rents go up in south
Song Than Industrial Park in the southern province of Binh Duong. Photo by VnExpress/Quynh Tran
The average rent for industrial lands in the south last quarter was US$159 per square meter per lease cycle, up 3% quarter-on-quarter and 10% year-on-year, Cushman & Wakefield said.

The real estate consultancy said 28,170 hectares of industrial lands were rented, a year-on-year increase of 12%.

The higher rents could drive many investors away from industrial hubs as HCMC and Binh Duong to distant localities like Binh Phuoc, Binh Thuan and Can Tho to lower costs, it added.

Another consultancy, Savills Vietnam, said the highest rent in HCMC was $300.

The average rent in the city’s neighboring provinces like Binh Duong and Long An was $180.

According to Collier Vietnam, the average rent in HCMC was $204, up 2% from the third quarter.

The occupancy rate increased to 92% from 91%.

Collier Vietnam predicted industrial land supply in the south this year would mainly be in HCMC’s neighboring provinces.

Trang Minh Ha, chairman of North Stars Asia Company, said demand for industrial lands has shot up with the occupancy rate in industrial hubs approaching 100%, resulting in development of more new lands.

Neil Alexander Macgregor, managing director of Savills, forecast demand to remain high this year.

He said a lot of money is being invested in developing ready-built warehouses and factories and logistics and data centers.

Trang Bui, general director of Cushman & Wakefield Vietnam, concurred with him saying the industrial land-for-rent market is likely to remain strong over the next 12 months.

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