Industrial zone land is forecasted to achieve 200 USD/m2

In the early days of the Year of the Tiger, the 247-hectare development website of Ba Thien Industrial Park is all the time crowded with employees and development machines with full capability day and evening. The challenge with a complete funding of VND 2,500 billion invested by Housing Development and Trading Company (HDTC) in Thien Ke and Ba Hien communes, Binh Xuyen district, Vinh Phuc province is taken into account to have essentially the most lovely location within the area. North.

The challenge is 45 km from the middle of Hanoi, 15 km from Noi Bai airport, 3 km from Noi Bai – Lao Cai freeway, about 150 km from Hai Phong port and Cai Lan – Quang Ninh deep-water port. Due to its prime location, this industrial park has obtained particular consideration from home and overseas enterprises who’re able to spend money on Vinh Phuc province.

HDTC’s consultant revealed that, within the face of accelerating demand and the urge of traders, the enterprise has targeted on dashing up progress, prepared handy over the primary land plots proper within the first quarter of 2022 to the “representatives” of HDTC. eagle” timely to “nest” with projects of hundreds of millions of dollars in this industrial park.

According to data from C&W Vietnam Company (under Cushman & Wakefield – one of the largest real estate service companies in the world) just announced, industrial real estate rental prices continue to tend to increase. Specifically, the average asking price in Ho Chi Minh City. Ho Chi Minh City and northern provinces like Vinh Phuc reached 4,308,000 VND/m2/term, equivalent to 186.0 USD/m2/term, up 1% qoq and 3% yoy, mainly due to supply limited and increased demand.

However, this is not the final increase. A leader of Vinh Phuc Province’s Department of Planning and Investment said that in the face of the current increasing demand for space rental by FDI enterprises, the province has not recently licensed new industrial parks because of a lack of land fund. Therefore, it is forecasted that industrial real estate rental prices may peak at 200 USD/m2 in the near future.

Professor Dang Hung Vo said that recently, due to the few newly established industrial parks, the supply of industrial park area remained almost unchanged, causing the rental price of real estate in this segment to constantly increase.

According to analysis by C&W Vietnam, with stable growth rate, export-oriented economy, increasing free trade agreements, young workforce, preferential investment policies and geographical location With strategic management, Vietnam is expected to continue to be an attractive destination for industrial real estate investors. The large demand for premises by businesses will “spray” the heat on the market, the price will continuously fluctuate in an upward direction.

In particular, Vietnam is reopening after the outbreak of the Covid-19 epidemic. This is one of the pioneering countries in the region to open the sky and welcome FDI investors with special preferential policies. Accordingly, it is forecast that there will be a strong wave of investment from countries and territories into Vietnam, pulling the demand for real estate rental to increase dramatically in the coming time. The industrial park real estate market will also soon receive positive effects from the fast and strong development in the industrial and high-tech sectors and the shift of production from China to Vietnam.

4 new trends, rental prices continue to rise

Analysis of securities companies shows that industrial real estate will be a bright spot in 2022, real estate businesses holding industrial park land are expected to benefit from land demand and rental prices in the future. next time.

A representative of SSI Securities Company said that public investment in improving the infrastructure connecting industrial parks is also promoting the recovery of land rental demand.

Analytical data from VNDirect Securities Company shows that, due to high demand and newly expanded supply, the real estate market continues to be hot in the Tiger. Accordingly, land rent will continue to increase by 6-10% year-on-year in 2021 in both the South and the North, in the context of high demand and limited supply. In 2022, industrial real estate will maintain its attraction thanks to the increase in supply to meet the high demand of the market.

In particular, according to VNDirect, the industrial park real estate market is also supported by four major trends of 2022, which are “catalysts” to help industrial real estate establish a new price level in the near future.

The first is promoting public investment in infrastructure. The disbursement of public investment in 2022 will increase by 20-30% compared to the actual disbursement in 2021 along with a series of large infrastructure projects that will be the driving force for the industrial park real estate group.

The National Assembly has approved an economic stimulus package worth VND347,000 billion. In which, the capital to implement the group of solutions for infrastructure development is up to 113,850 billion VND, focusing on the development of 13 important transport projects.

In the medium-term public investment plan for the 2021-2025 period, capital allocation for transport infrastructure development continues to be focused with 570,412 billion, accounting for 52% of the total investment capital from the budget. The government is also setting a target that the whole country will own 3,000 km of highways by the end of 2025.

The second is the tendency to expand production by FDI enterprises and domestic enterprises. FDI into Vietnam will recover strongly in 2022 thanks to the plan to resume international commercial flights from the beginning of the year, especially the Government’s open door policy after the Covid-19 pandemic. This will create favorable conditions for investors and professionals to return to Vietnam and promote investment in the coming year.

At the same time, Vietnam is still an attractive location for foreign companies in the “China + 1” strategy thanks to advantages such as competitive labor costs and large population. Vietnam also benefits from the signing of free trade agreements (FTAs) such as CPTPP, EVFTA, RCEP …

Third, the boom in e-commerce, increased inventory requirements, and diversification of supply chains help boost demand for industrial park land for warehousing services.

According to calculations, the cost of transportation increased much higher than the cost of warehousing, accounting for 45-70% of the total cost of the supply chain, while the cost of fixed assets only accounted for 3-6%. Therefore, industrial properties located near major traffic hubs such as airports and harbors, with good traffic connections will be strongly sought.

Finally, the push to broaden new provide within the Red River Delta, North Central Coast and Central Coast additionally helps this section’s progress momentum obtain spectacular indicators.