HCM City (VNA) – CBRE Vietnam experts have forecast a continued annual rise of 3-7% in industrial land rental prices in the South, accompanied by a projected yearly increase of 0-4% in pre-built warehouse and factory rentals over the next three years in Vietnam.
Executive Director of CBRE Vietnam Duong Thuy Dung highlighted a positive trend in the Vietnamese industrial land market, saying that European manufacturers are actively establishing themselves in the North, while Chinese counterparts are cranking up production in the South. This influx is sparking a wave of new industrial zones in southern hotspots like Binh Duong, Dong Nai, and Long An, and even stretching to central provinces like Thanh Hoa, Nghe An, Ha Tinh, and Quang Nam.
Dung noted that transactions involving pre-built warehouses and factories for lease are primarily driven by major developers with hefty investment portfolios across various localities. In the South, manufacturers of furniture, household appliances and electronics are leading the charge, alongside the expansion of e-commerce and logistics companies. Meanwhile, in the North, major transactions are emerging in the logistics, electronics and material sectors.
JLL Vietnam reported that the southern warehouse market in the fourth quarter of 2024 recorded positive net absorption, reaching nearly 19,600 sq.m. Leasing activity improved considerably, fuelled by demand from tenants serving the domestic consumer market, which tends to be active toward the end of the year. As a result, the annual net absorption rate soared 40% annually to 199,500 sq.m.
In the pre-built modern warehouse segment, while no new supply was recorded in the fourth quarter, the existing scale remains at 2 million sq.m, reflecting a 5.2% annual rise. Leading developers BWID and Mapletree still dominate the market, holding 30% and 20% of the total existing supply, respectively. Their monthly rental prices generally remain stable at 4.85 USD per sq.m, unchanged from the previous quarter and showing a slight yearly uptick of 1.8%.
Head of Research and Consulting at JLL Vietnam Trang Le stressed that given the ongoing global economic volatility, the Vietnamese Government has actively launched domestic stimulus policies, including the National Grand Sale 2024, which slashed prices by up to 100%, to keep the economy humming. This could mean big business for supply chain services like storage, delivery, and retail, pushing demand for more warehouse space, she said./.
