Things are looking up for the industrial park property market this yearwith many projects likely to be implemented with "multi-use" components,according to property service provider CB Richard Ellis (CBRE) VietNam.
Many developers believe IPs will be more successfulwith residential areas as well as industrial units, the company said in asummary of its quarterly report for HCM City .
Amata Industrial Park in the neighbouring province of Dong Naican be an illustration of this predicted trend for 2012.
Huynh Ngoc Phien, Amata's general director, said investors in the IP(around 120, with almost half coming from Japan ) will focus on theirown business while others services were made available by theindustrial park owner.
The industrial park is developingwhat he calls a "perfect city" project that includes residential andcommercial facilities, schools, health care services and relaxationareas.
Another successful IP in Binh Duong province, theVietnam – Singapore Industrial Park (VSIP), is also pursuing asimilar policy, with commercial and residential projects underway.
"As interest in the industrial sector continues to increase, trendswitnessed throughout 2011 strengthened in the fourth quarter," and arelikely to persist in 2012, CBRE said.
It said there iscontinued interest in Vietnam from manufacturers in Japan andThailand . The natural disasters of last year have prompted tenants inthese countries to seek opportunities to diversify risk.
Yet another trend likely to be seen in 2012 is an increase in pressurefrom authorities for factories within major cities to relocate to IPs,freeing land for infrastructure development and other uses, CBRE said.
It said last year's fourth quarter saw a slight drop from the thirdquarter in occupancy rates of IPs in HCM City , to 90.1 percent,adding that this mainly resulted from an expansion of the Sai GonHi-tech Park that saw its occupancy rate fall by 20 percent.
"The expansion, however, reflects continued confidence in the market as opposed to tenants leaving," the company said.
Meanwhile, land rates increased to 194 USD per square metre per term(usually up to 50 years), up almost 42 percent from the previousquarter.
In HCM City , this rise was mostly areflection of movement at Tan Thuan Export and Processing Zone, whereasking price almost doubled in the fourth quarter compared to theprevious one.
Meanwhile, the rate for already builtfactories in the city's IPs did not change much, decreasing slightly toabout 4.3 USD per square meter per term.
The CBRE surveyof IPs in HCM City, Binh Duong, Dong Nai and Long An, which form theSouthern Key Economic Region, found that the average land rate at major,stabilised IPs stood at 194 USD per square meter per term (usually upto 50 years) for HCM City, 56.57 USD for Binh Duong, 71.67 USD for DongNai and 73.33 USD for Long An ./.
Many developers believe IPs will be more successfulwith residential areas as well as industrial units, the company said in asummary of its quarterly report for HCM City .
Amata Industrial Park in the neighbouring province of Dong Naican be an illustration of this predicted trend for 2012.
Huynh Ngoc Phien, Amata's general director, said investors in the IP(around 120, with almost half coming from Japan ) will focus on theirown business while others services were made available by theindustrial park owner.
The industrial park is developingwhat he calls a "perfect city" project that includes residential andcommercial facilities, schools, health care services and relaxationareas.
Another successful IP in Binh Duong province, theVietnam – Singapore Industrial Park (VSIP), is also pursuing asimilar policy, with commercial and residential projects underway.
"As interest in the industrial sector continues to increase, trendswitnessed throughout 2011 strengthened in the fourth quarter," and arelikely to persist in 2012, CBRE said.
It said there iscontinued interest in Vietnam from manufacturers in Japan andThailand . The natural disasters of last year have prompted tenants inthese countries to seek opportunities to diversify risk.
Yet another trend likely to be seen in 2012 is an increase in pressurefrom authorities for factories within major cities to relocate to IPs,freeing land for infrastructure development and other uses, CBRE said.
It said last year's fourth quarter saw a slight drop from the thirdquarter in occupancy rates of IPs in HCM City , to 90.1 percent,adding that this mainly resulted from an expansion of the Sai GonHi-tech Park that saw its occupancy rate fall by 20 percent.
"The expansion, however, reflects continued confidence in the market as opposed to tenants leaving," the company said.
Meanwhile, land rates increased to 194 USD per square metre per term(usually up to 50 years), up almost 42 percent from the previousquarter.
In HCM City , this rise was mostly areflection of movement at Tan Thuan Export and Processing Zone, whereasking price almost doubled in the fourth quarter compared to theprevious one.
Meanwhile, the rate for already builtfactories in the city's IPs did not change much, decreasing slightly toabout 4.3 USD per square meter per term.
The CBRE surveyof IPs in HCM City, Binh Duong, Dong Nai and Long An, which form theSouthern Key Economic Region, found that the average land rate at major,stabilised IPs stood at 194 USD per square meter per term (usually upto 50 years) for HCM City, 56.57 USD for Binh Duong, 71.67 USD for DongNai and 73.33 USD for Long An ./.
