Industrial real estate rents surge in HCM City, Hà Nội

November 02, 2020 - 08:45
Rents for industrial lands in HCM City and Hà Nội have increased by 2 and 1.7 times in the third quarter from a year earlier.


Việt Nam industrial real estate demand has increased in the third quarter of this year. Photo

HCM CITY —  Rents for industrial lands in HCM City and Hà Nội have increased by two and 1.7 times respectively in the third quarter from a year earlier.

At the recent 2020 Việt Nam Industrial Real Estate Forum, Lê Trọng Hiếu, director of industrial and logistics services at CBRE Việt Nam, said the rates in HCM City and Hà Nội have risen by much more than the 20-30 per cent growth seen in other localities in both the south and north.

In HCM City, some industrial parks that rented land at US$150 per square metre for a 30-45-year lease term now want $300.

In Đồng Nai Province, the rents for industrial lands have increased from $110 to $200.

In some provinces in the north, rents have risen though not by as much as in the south.

In Hà Nội, for instance, they have increased from $155 to $260, while in Bắc Giang Province they have gone up from $55 to $110.

According to Hiếu, these "unprecedented" growth rates have been triggered by surging demand and limited supply.

According to a CBRE Việt Nam survey, in the past 12 months the demand for leasing land to build factories and warehouses has increased.

Some industries such as electronics, e-commerce, animal feed, etc have expanded their areas.

Auto manufacturing and components companies are planning to expand their production facilities in the central region.

Experts said increasing investment by the Government in transport infrastructure, effective handling of the COVID-19 pandemic and US-China trade tensions have encouraged manufacturers to look to Việt Nam as an investment destination to diversify their supply chains.

Since the country’s economic reopening after the COVID-19 pandemic was put under control, industrial land for lease has been a key source of business.

To meet the increasing demand of the market, in the north, some industrial land areas such as Bắc Giang, Thái Nguyên, and Nam Định have been re-planned.

Meanwhile in the south, authorities in Bình Phước, Tây Ninh and Bình Thuận provinces are planning to become new industrial clusters.   

There are 279 industrial parks in the country with occupancy of 71.1 per cent, which have created 3.83 million jobs, according to the Ministry of Planning and Investment.

Another 87 are under construction. — VNS