Industrial real estate is bright spot in 2020 market

The industrial market is the only real estate sector that has enjoyed positive progress in both rental rates and occupancy rates during the COVID-19 pandemic.

In 2020, the average occupancy rate in industrial zones was up more than 70 percent year-on-year. The average factory rental price nationwide was 60-80,000 VND per sq.m and the purchase price of land in industrial zones with infrastructure ranged from 3 to 5 million VND per sq.m, according to the Vietnam Real Estate Brokerage Association.

A report from the association showed the number of proposals to research investment in new construction of industrial parks in 2020 also increased sharply compared to previous years.

The Association said there will be many new industrial zone infrastructure development projects approved in the near future.

Along with that, many logistics projects serving industrial zones will also be promoted and the rental price of warehouse and factory premises in 2021 is forecast to not increase compared to 2020.

At present, Vietnam has 260 industrial parks in operation and 75 under construction./.