The occupancy rate is the bright spot of the industrial real estate market in the South. In addition, the supply continued to grow rapidly.
According to CBRE Vietnam, the industrial real estate market in the South has experienced significant growth in rents and occupancy rates over the past time.
Specifically, in the industrial zones of four key southern provinces and industrial cities, the average occupancy rate was recorded at about 84.5%. Binh Duong, Dong Nai, and Long An have an average occupancy rate of 80%. Particularly in Ho Chi Minh City, this rate reaches over 90%.
The number of new industrial parks offering land for lease in the southern market, according to CBRE Vietnam, is quite limited. Only 4 new industrial zones appear in the regional key industrial area. The total natural land area of the new industrial park is 1,373,8 ha with the supply of industrial land for lease expected at 906 ha.
Although it is a bright spot and is still an area receiving much attention in the economic strategy of “laying a nest to welcome the big bang”, the industrial real estate market has been difficult to avoid the impact of COVID-19 in recent times.
Ms. Pham Ngoc Thien Thanh, Deputy Director of CBRE Vietnam Research and Consulting Division, said that CBRE recorded a 20-30% increase in land rental rates in some industrial parks in Ho Chi Minh City, Dong Nai and Long An. compared with the same period last year.
“However, high asking rents plus two COVID-19 outbreaks in Vietnam have caused difficulties for the market. With that situation, the investors of industrial parks and ready-built factories have introduced measures to support tenants, including reducing rents and infrastructure maintenance fees in some cases (from 10-30%). ), restructured payment terms and exempted rent for new businesses setting up factories during the epidemic outbreak. This helps restrain the price increase, the growth rate of land rents in the third quarter of 2020 compared to the previous quarter, “- Ms. Thanh said.
In addition, CBRE noted that the ready-built factory market is slowing down, which is caused by abundant new supply and delayed rental activities due to the failure of foreign tenants to conduct physical surveys – another impact. of COVID-19 in connecting investment travel.
Another bright spot of the southern industrial real estate market, according to CBRE Vietnam, is the focus on the need to expand the storage capacity and distribution network of e-commerce and logistics companies. The fast growth trend of e-commerce during the COVID-19 epidemic makes businesses have and will continue to realize the value of logistics investment to serve the supply chain in a new way.
Also according to CBRE Vietnam report, to adapt to the new situation, industrial real estate investors have had a change in product development. In particular, the outstanding application of technology in the management and operation of factories, provision of legal service packages, personnel …
That gradually creates an integrated model between real estate provision and investment and management support services in the industrial real estate market of Vietnam. These can be called 4.0 factories with many new, environmentally friendly utilities and updated technology.
In addition, the high-rise warehouse model has also begun to appear to create a larger storage space for the needs of e-commerce companies, in areas where the industrial land bank has limited expansion. In fact, this model appeared before the COVID-19 pandemic and was piloted by a number of industrial real estate businesses, typically Long Hau Real Estate.
One factor that deserves attention but is not mentioned, after the second COVID-19 outbreak, the wave of “laying an eagle’s nest” has slowed down in the media, but in reality according to the plan Plans of investors have been prepared in advance and are ready for when the global economy/supply chain, new investment trends or M&A in the real estate market are quite prominent.
Dong Tam Group has just announced an industrial park in a huge project scale of Long An Industrial Park, Urban Area and International Port; or Phat Dat’s entry into the real estate market through the establishment of an Industrial Park Investment and Development Company with a capital of VND 680 billion and possible M&A to develop land funds for a large-scale industrial park project… are those For example.
Source: enternews
