The Covid-19 pandemic has severely affected many segments of the real estate market. However, in a picture where gray plays a dominant role, there is still a segment that emerges as a bright spot of the market, which is warehouse real estate.
Measures to deal with the Covid-19 pandemic are social isolation/distancing that has changed people’s behavior, including shopping. People’s online shopping trend has increased sharply, leading to the strong development of the warehouse system. And this online shopping habit continues to be maintained even when Vietnam has basically controlled the epidemic. The Hanoi warehouse market is also on the same track with growth in supply and rental prices.
A survey by Batdongsan.com.vn shows that factory rents have increased 10-20% over the past year. The western area of Hanoi recorded the highest increase, commonly ranging from 10-20%. In which, “beautiful locations, convenient for transportation, the increase” reached 20%.
In My Dinh, Me Tri Ha, Me Tri Thuong areas, the rent has increased from 85,000-100,000 VND/m2/month in 2019 to 95,000-120,000 VND/m2/month at the moment. During the same period, the rent for factories and warehouses in Phu Do increased from 70,000 to 80,000 VND/m2/month to 85,000-105,000 VND/m2/month.
The remaining areas of the West, such as Ha Dong, Bac Tu Liem, Hoai Duc, etc., which have softer rents, also witnessed significant price increases. On Pham Van Dong Street, factories and warehouses have increased their prices from 100,000 to 110,000 VND/m2/month to 120,000-140,000 VND/m2/month. In the areas of Tay Tuu, Phu Dien, Cau Dien, Lien Mac (Northern Tu Liem), the price increased from 45,000-70,000 VND/m2/month to 60,000-80,000 VND/m2/month. Farther away, Thang Long Avenue (Ha Dong), Dong La, An Khanh (Hoai Duc) also jumped from 40,000-60,000 VND/m2/month to 55,000-75,000 VND/m2/month.
In the South of Hanoi, the areas with the highest rents for factories and warehouses are Truong Dinh, Giai Phong, Linh Dam, Tran Phu, Tam Trinh, Dinh Cong Thuong (Hoang Mai), Khuyen Luong, Nguyen Khoai (Hoang Mai), Khuyen Luong, Nguyen Khoai (Hoang Mai). Hai Ba Trung), the price increased from 65,000-90,000 VND/m2/month to 70,000-110,000 VND/m2/month. Thuy Linh, Linh Nam (Hoang Mai) is still the place with the lowest rent, but also increased from 40,000-60,000 VND/m2/month to 50,000-70,000 VND/m2/month.
In the East area including Long Bien and Gia Lam, the central locations of Long Bien district such as Bo De, Ngoc Thuy, and Co Linh (Long Bien) still retain the “kingdom” in terms of rent. The rent in this area also increased from 80,000-100,000 VND/m2/month to 90,000-110,000 VND/m2/month. In the area of Pho Tram, Phuc Loi (Long Bien), Trau Quy, Phu Thi, and Kieu Ki towns (Gia Lam), the rent also increased from 40,000-60,000 VND/m2/month to 45,000-65,000 VND/m2. /month.
According to brokers in this segment, the demand for renting factories and warehouses recorded an increase of 30% compared to last year. If previously Hanoi factories and warehouses were rented for the main purposes of making restaurants, mechanical workshops, car garages, interior showrooms, etc., in 2020 there is a need to rent factories for storage purposes. strongly increased. This demand exploded strongly at the beginning of the year when Covid-19 was complicated and social distancing orders were issued nationwide.
Notably, in addition to the warehouses that are leased with an area of up to hundreds, thousands of m2 aimed at corporate customers from small to large scale, the market also appears mini personal storage, with an area of 1-50m2, meeting the needs of small businesses, the amount of goods needed to store is not too large. With the personal storage business model, the owner or a company rents out a large area from 1,000-2,000m2 and then subdivides the rental area. Not only suitable for small businesses, this model is also popular with many people when moving or repairing houses but do not have space to choose to rent.
Mr. Hua Van Linh, a broker specializing in the segment of factories and warehouses in the West of Hanoi, said that in the past years, the market of factories and warehouses for rent has not received much attention from brokers. Most brokers focus on selling projects, resorts, etc., but this year, this segment has had many brokers jump in and make the market, despite the high demand, the competition level has also increased. However, Mr. Linh believes that long-time brokers like him still have strengths in source of goods, sources of customers, relationships… and like all segments, any broker who wants to get results must have persistence, sticking to that segment.
According to ThanhnienViet
