IS INDUSTRIAL REAL ESTATE STILL "HOT" IN 2023?
[February 7th, 2023] In 2022, the average rental price of industrial real estate increased by 10%, occupancy rate reached 80-95% depending on the area, and will continue to increase in 2023 due to high demand.
Reports from the Vietnam Real Estate Association (VARS) show that the occupancy rate of industrial zones throughout the country has a trend of increasing and reaching over 80%. The occupancy rate of industrial zones in southern provinces is about 85%.
Some industrial zones in Hanoi, Ho Chi Minh City, Dong Nai, Bac Ninh, Bac Giang and Binh Duong are almost fully occupied. Among these, Binh Duong is the highest occupancy rate in the country with 29 industrial zones in operation with an occupancy rate of over 95%.
In 2022, contrary to the general real estate market, the rental price of industrial real estate in Vietnam increased by about 10% compared to the previous period. Specifically, the rental price reached an average of 100-120 USD/m2/lease period and will continue to increase, especially in the southern market, due to limited supply. In the industrial zones in the north, the rental price fluctuates between 90-120 USD/m2/lease period.
In the southern region, Ho Chi Minh City has the highest average rental price, fluctuating from 180-300 USD/m2/rental period; followed by Long An, around 125-275 USD/m2/rental period; Binh Duong, 100-250 USD/m2/rental period; Dong Nai, 100-200 USD/m2/rental period.
According to the Saigon Thuong Tin Securities Company (SBSC), more and more foreign investors in the high-tech and electronics industries are choosing Vietnam as their destination. As a result, the rental prices of industrial real estate in 2023 are predicted to be more vibrant.
According to statistics, industrial real estate has a yield of 8-11%. Meanwhile, the average profit of landlords is only around 4% per year. In 2023, the rental prices of industrial real estate are expected to continue to rise, especially in the southern market.
Source: CafeF
Relation
[March 1st, 2023] If the economic and social situation is more stable, and inflation continues to be controlled, Ho Chi Minh City is expected to attract $4.1-4.5 billion of FDI capital in 2023.
[March 1st, 2023] If the economic and social situation is more stable, and inflation continues to be controlled, Ho Chi Minh City is expected to attract $4.1-4.5 billion of FDI capital in 2023.
[February 25th, 2023] The earthquake in February 2023 was evaluated as the worst in Turkey in nearly a century, and it destroyed tens of thousands of buildings, creating a devastating scene of ruins that shook the world.
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