At the recent Ho Chi Minh City Real Estate Market Report, a representative of JLL Vietnam pointed out: Currently, the price of industrial land in Long An is second in the capital of the Southern industrial park, surpassing the threshold of US $ 100 per m2 for the lease cycle, ranked over Binh Duong, Dong Nai and Ba Ria - Vung Tau in terms of industrial park land rents.
This research unit said that the escalating US-China trade war has increased the demand for industrial park land. The average land price in the second quarter of 2019 was pushed to 95 USD/m2 for the lease cycle, over 15.8% compared to the same period last year. This is considered a high rent increase for the industrial real estate market.
Considering the outskirts of Ho Chi Minh City, Long An is the region that recorded the highest rent growth in the second quarter of 2019, surpassing both media markets such as Binh Duong and Dong Nai. Currently, the rent in Long An surpasses USD 100/m2 for the lease cycle. Particularly in Saigon, with a position as the core of Ho Chi Minh City area, there is still a leading industrial park rent at US $ 162/m2 for the lease cycle.
In addition, the price of ready-built factory buildings in the southern industrial zones fluctuates around 3.5-5 USD/m2/month. This rate increased slightly compared to the previous 2 quarters. The average occupancy rate of industrial parks and export processing zones in the South was high at 81%. Ho Chi Minh City, Binh Duong and Dong Nai are the most attractive locations despite the escalating rents.
Also in the second quarter of 2019, the Southern region gained a total area of 25,060 hectares of industrial park for rent, 2.5 times higher than the North. Because the industrial land fund of the southern provinces currently has a high occupancy rate, this investment market also tends to supplement new supply.
According to JLL's forecast, in the coming time, new supply of industrial real estate in the southern provinces will come from the next stages of existing industrial parks or new industrial parks which have been set up for market launch. The school aims to capitalize on increasing demand.
The representative of JLL Vietnam emphasized that industrial property prices have been highly inflated recently in some southern regions, largely due to the US-China tension factor. With this situation, industrial land prices are expected to continue to climb before the trend of shifting production from China to Southeast Asia, including Vietnam.
According to Ha Vy