CBRE Vietnam’s latest report showed that the average occupancy rate of industrial zones in the primary market reached 80.2 percent in the third quarter.
The absorption rate of industrial land in primary markets was 251 hectares, raising the absorption rate in the first three quarters to over 700 hectares, or 18 percent higher than that of 2022.
The industrial land leasing fees kept rising. In the third quarter, the average rental price for the primary market reached $131 per sqm for remaining term, up 2 percent quarter-on-quarter and 12 percent year-on-year.
In the southern region, the occupancy rate in medium industrial zones was 81.9 percent, while the industrial land absorption rate reached over 190 hectares, up 5.9 percent over the previous quarter. As such, the figure was 770 hectares in the first nine months of the year, nearly the same rate as 2022.
Regarding land rental, the figure was $189 per sqm for remaining term, a continued slight increase of one percent compared with the quarter before and 13 percent compared with the same period last year.
Most big transactions came from Chinese and Japanese businesses with diverse industries, including mechanical engineering, chemicals, plastics, rubber and electronics.
In the ready-made warehouse and workshop market segment, 752,000 sqm in the northern market in the first nine months of the year and 450,000 sqm in the south were put into operation.
The warehouse leasing fee in the north was $4.6 per sqm per month in the north and the workshop rental $4.8. The tenants were mostly electronics and automobile spare part manufacturing companies.
In the south, with plentiful supply, the rentals of warehouses and workshops remain stable at $4.5 per sqm per month for warehouses, and $4.9 for workshops. The occupancy rate of ready-made warehouses was 56 percent, while ready workshops were always in high demand, at 91 percent.
Chinese, Vietnamese, Japanese, American and EU companies were the biggest investors hunting for industrial land in Vietnam.
According to Nguyen Hoai An from CBRE Vietnam, the industrial land rental in the next two years will increase by 6-10 percent in the north and 4-8 percent in the south.
Meanwhile, ready-installed workshops are expected to see rental increase slightly by 2-4 percent per annum in the next two years.
With the relationship between Vietnam and large partners like the US, South Korea and China upgraded into comprehensive strategic partnership, investment capital flow from the countries is expected to lead real estate market demand.