Industrial park rental prices are expected to grow by 5-9% a year for the Northern region and 3-7% a year for the Southern market, creating an ideal opportunity for investors to enter the market. this school.
Recently, at the "Conference on Identifying bright spots and investing in 2024", Ms. Duong Thuy Dung - Managing Director of CBRE Vietnam said that industrial land for lease currently has an occupancy rate of nearly 100%. In level 1 markets such as Binh Duong, Dong Nai, Long An, Hai Duong, Bac Ninh, Hung Yen... there is almost no land left for rent. Instead, secondary markets such as Ba Ria Vung Tau, Tay Ninh, Thai Binh, Thai Nguyen... gradually become attractive destinations with large land funds in industrial parks and low prices.
Specifically, in the North, the average rental price is 132 USD/m2/rental cycle, an increase of 33% compared to 2022. Bac Ninh recorded the largest price increase, up 40% to 189 USD/m2/cycle. lease due to the addition of new quality supply along with the interest of high-tech enterprises. In the South, the average rental price is 189 USD/m2/rental period, an increase of 15% compared to 2022.
For example, Thai Nguyen market still maintains "agreeable" prices, ranging from 60-90$/m2. The average rental price in Dong Nai increased by 20% over the same period, ranging from 120-240 USD/m2, while in Ba Ria-Vung Tau, the average rental price was 130 USD/m2/rental period, an increase of 30% year-on-year. .
In addition, Bac Ninh recorded the largest price increase, up 40% to 160 USD/m2/rental cycle due to the addition of new quality supply along with the interest of high-tech businesses. Hai Phong increased by 30% to 125 USD/m2/rental period. For example, the Ho Chi Minh City and Binh Duong markets did not record price fluctuations because the available industrial parks were all filled with long-term lease cycles. Long An has an average rental price increase of about 12%, ranging from 140 - 300 USD/m2/rental period.
Thus, there is an opportunity for investors to enter the Northern market and industrial park land rental prices are expected to grow by 5-9% a year for the Northern region and 3-7% a year for the Southern market. Male.
Accordingly, occupancy rates and rental prices continued to grow despite economic difficulties. A slight decrease in occupancy rates only occurred locally in a few provinces that recorded a lot of new available supply. The occupancy rate of operating industrial parks is over 70%. Of which the Northern key provinces reached 80% and the Southern key provinces reached 90%.
In fact, industrial real estate is the brightest spot in the real estate market. Despite being significantly affected by the economic recession and political fluctuations around the world. However, with the efforts and high determination of State management agencies, provinces and cities proactively orient priority occupations in accordance with local development advantages. Arranging land funds in planning and researching and promulgating investment attraction mechanisms and open-door policies, inviting investment, business investment activities in industrial zones continue to stabilize and develop. , the situation of attracting investment and developing industrial parks continues to achieve many prosperous results.
Previously, in 2023, the country will have 7 more industrial parks in operation and 13 industrial parks under construction, attracting many large "eagles" from Hong Kong and Taiwan (China).
Industrial parks and economic zones have attracted over 10.400 domestic investment projects and over 11.200 valid FDI projects, with total registered investment capital of over 2,54 million billion VND and 231 billion USD, respectively. FDI capital in industrial parks and economic zones accounts for about 35 - 40% of the total registered FDI capital increase of the country in recent years. The ratio of investment capital implemented in industrial parks and economic zones in the total investment capital of the whole society is approximately 30%. Promoting local infrastructure and economy. Create a premise for the development of many supporting industries, creating opportunities to develop residential real estate and rental housing.
Rents have increased, higher than other countries in the region; Risks related to the global minimum tax law along with institutional "bottlenecks", policies and developments in practice can be obstacles, reducing competitive advantages in attracting investors. to Vietnam. However, Vietnam still has many driving forces to help the industrial real estate market promise to prosper in 2024.
Accordingly, FDI capital flows are still positive with advantages from preferential tax policies. Transport infrastructure is increasingly synchronous and modern with a commitment to investing in top infrastructure in the region. Industrial park support services are increasingly improved.
Many new industrial park investment projects have had their investment policies approved and have begun implementing the next phases. Industrial park real estate supply is witnessing growth in both the North and the South
The demand for industrial park real estate is still very large, especially the need for multi-use multi-storey warehouses and ready-built factories.
Ms. Dung further emphasized that it is necessary to develop well two products, namely warehouses and ready-built factories, to help foreign investors in Vietnam greatly reduce the time spent looking for land and having to worry about licenses. construction or investment license. Currently, the rate of encountering this difficulty accounts for about 2% for both markets.
This is promoted in both quality and quantity with a series of plans and investment agreements from foreign businesses, choosing Vietnam as the destination in the trend of supply chain transformation and the expectation of increased cooperation from foreign countries. Active diplomatic activities, especially the recently established strategic relationship between Vietnam and the US.
The approved planning for many provinces/cities for the period 2021-2030 will partly solve problems related to legal procedures for industrial parks. These factors will help industrial park real estate in 2024 continue to maintain its position and continue to grow.
