According to CBRE’s Q2 report on the real estate market, the Northern Industrial Park real estate market is recording optimistic growth and rising rents.
As of Quarter 3/2020, the total land area of industrial zones in the five main industrial cities in the North including Hanoi, Bac Ninh, Hung Yen, Hai Duong and Hai Phong reached 13,800 ha, with 9,600 ha. industrial land for rent.
The average occupancy rate of the industrial park remained at a positive level of 78%. In which, industrial zones in Hanoi, Hai Duong and Bac Ninh have average occupancy rates of about 90%. Most of the vacant industrial land in the main industrial sites is located in Hai Phong and Hung Yen.
Due to the shift of production from China and the signing of the EVFTA Agreement, demand for industrial land increased in all provinces. CBRE recorded that the rental rates of some industrial zones in Hai Phong, Bac Ninh and Hai Duong increased from 20% to 30% compared to the previous year.
The performance of the ready-built and built-in warehouse market remained unchanged from the previous year, due to multiple openings in 2019 and the first 9 months of 2020, and rental disruption due to travel restrictions. again. The growth of e-commerce and logistics companies since the boom of COVID-19 has created a huge demand for storage space and distribution networks.
Therefore, the need to find land funds to develop logistics facilities has increased significantly. Specific product types such as temperature controlled warehouses and high-rise warehouses are expected to emerge and develop to meet the demand for fresh food distribution and to create larger storage space for businesses. E-commerce business in prime locations.
In the first 9 months of 2020, CBRE recorded the entry of many large tenants in the electronics sector, including a phone maker in an industrial park in Bac Ninh (100ha) and Pegatron in Deep C Industrial Park Hai Phong 2. .
Supply chain shifts are expected to be the main driving force behind real estate demand in the near future, and many other large tenants will also come and seek opportunities in Vietnam. With limited industrial land and high asking rents in existing industrial centers, tenants and investors may find other options in neighboring areas.
Developers will also compete to retain large tenants by adopting state-of-the-art technology in facility operations, as well as providing a full range of services such as legal and human resources to assist guests. hired during project implementation.
According to Bao Dan Sinh
