
Hanoi (VNS/VNA) - Industrial property in the Northern Key EconomicZone (NKEZ) saw strong development in the third quarter of this year, accordingto Jones Lang LaSalle firm (JLL Vietnam).
In the first nine months of this year, the occupancy raterecorded in all existing industrial parks (IPs) across the five most dynamiccities and provinces in the NKEZ, including Hanoi, Hai Phong, Bac Ninh, HungYen and Hai Duong, averaged 69 percent, an increase of 200 basis pointscompared to the previous data cycle in the first quarter of this year. The toprates were in Hanoi and Hung Yen.
The NKEZ stands out as having suitable features for enterprisesto set up operations, Nguyen Hong Van, JLL Vietnam’s Director of Markets, saidat a this week press conference in Hanoi.
Up to the third quarter of this year, the total leasableindustrial land area stood at 9,371ha, of which the largest supply was in HaiPhong, followed by Bac Ninh, according to JLL Vietnam.
Bac Ninh and Hai Phong, the two leading industrial marketsstill have sufficient vacant land areas to capitalise on rising demand.
Further, new supply from subsequent phases of existingindustrial parks and newly developed ones in strategic locations have alsooffered more options, making these two provinces the most desirable areas innorth Vietnam, she said.
The average industrial land price in the third quarter hit 95USD per sq.m per lease term, an increase of 6.7 percent year on year (y-o-y), Vansaid.
Aside from Hanoi as the economic centre with the highestprice, Bac Ninh and Hai Phong still post leading prices thanks to their strongindustrial foundation with well-known tenants, strategic location andestablished infrastructure.
Hai Duong and Hung Yen still kept their prices at reasonablelevels. Average monthly rents for factory ranged from 4-5 USD per sq.m permonth. This rent remained flat compared to the first quarter.
The strong development in the manufacturing sector acrossprovinces has also brought with it the great potential for the establishment ofother real estate sectors. This has been proven by strong investment pouringinto the real estate market in the northern provinces as witnessed recently.
With an increasing proportion of FDI pouring into the northover the past decade, Hai Phong, Bac Ninh, Hung Yen and Quang Ninh are alsofast becoming focal points for investment apart from Hanoi, according to JLLVietnam.
The BCI Asia statistic shows that, after Hanoi, Hai Phong, BacNinh, Quang Ninh and Hung Yen are the top provinces in terms of the number ofreal estate developments. Apart from Quang Ninh, well-known for its Ha Long Bayand Van Don Special economic zone, the other three provinces have consistentlyled the north regarding industrial developments.
Bac Ninh and Hai Phong markets are strongly driven byresidential projects being developed to capitalise on the growing housingdemand from an increasing number of migrants and expats working in theprovinces.
Unlike Bac Ninh and Hai Phong where most developments areconcentrated in the city centre, most projects in Hung Yen cluster along itsboundary with Hanoi, to benefit from the existing demand in this big city. Hometo Ha Long Bay, Quang Ninh has been on the radar of many well-known developers,focusing on vacation and tourism-related properties.
About 615 ha is planned to be launched during the next12-month period. Steady price growth for industrial land in the North ofVietnam is expected through this year end due to strong investor appetite. Newinvestors, largely from Asian countries such as Japan, the Republic of Koreaand China, will remain keen on Vietnam’s industrial property./.