10 views Although the supply of ready-built warehouses increased by 31% in 2024, the absorption area in both the North and the South still reached the highest level in the past 3 years.
Occupancy rates increase, rental prices increase accordingly
The Vietnam Industrial Real Estate Highlights Report 2024 by real estate services firm Savills recently released shows that by the end of 2024, the total supply of ready-built warehouses nationwide will reach 15.1 million square meters, up 31% year-on-year. New supply is growing strongly in key provinces.
Of which, the supply in the Southern region reached 10.6 million m2 with the allocation ratio of 49% ready-built factories and 51% ready-built warehouses. In the North, the supply of ready-built warehouses reached 4.5 million m2, accounting for 30% of the total national supply with the allocation ratio of 61% factories and 39% warehouses.
The above developments were also recorded by real estate services firm CBRE. The firm said that in the ready-built factory segment alone, despite the most abundant new supply, the absorption area in both the North and the South still reached the highest level in the past 3 years.
Specifically, the factory occupancy rate in the North reached 88%, up nearly 2% over the same period in 2023, while in the South it grew by nearly 8%, reaching 89%. With ready-built warehouses, the market recorded a large differentiation. Of which, projects in the North maintained a net absorption rate of about 0.2 million m2 – similar to the level of the past two years. Projects in the South had a net absorption rate of up to 0.4 million m2.
CBRE also said that based on leasing requests sent to the company, most industrial warehouse leasing transactions come from large units with investment portfolios spread across provinces and cities.
In particular, the rental demand in the Southern region mainly comes from manufacturers in the furniture, home appliances, electronic equipment, and e-commerce industries. Regarding tenants, Chinese manufacturers account for 25% of rental requests, compared to only 10% in 2023.
In the northern region, rental demand is driven by the logistics, electronics and material manufacturing sectors, with customers mainly coming from China and Vietnamese enterprises. Notably, European and American customers are also actively seeking warehouse and industrial land again, according to CBRE.
Vietnam could become a new global freight hub
Commenting on the market outlook, CBRE forecasts that although new supply in the ready-built warehouse market in both the North and the South will continue to grow positively in the period 2025 – 2027, rental prices in the North are expected to continue to increase by 0 – 4%/year and in the South by 2 – 4%/year.
The vibrant ready-built warehouse market is a positive signal, giving investors and tenants more motivation to consider Vietnam as a suitable destination for investment or business expansion.
Mr. Thomas Rooney, Senior Manager, Real Estate Advisory Services, Savills Hanoi, commented that the demand for ready-built warehouses will increase in the coming time, especially in the context of the strong development of the e-commerce market in Vietnam.
“The e-commerce industry needs large warehouse space to store many items and install systems to support picking and packing activities. International manufacturers expect to have warehouse space to store goods after production. Therefore, investing in infrastructure and logistics systems will strengthen the supply chain for manufacturing enterprises ,” Mr. Thomas Rooney analyzed.
Sharing the same view, Ms. Trang Bui, General Director of Cushman & Wakefield, said that with the development of the e-commerce industry, Vietnam is becoming a destination for many businesses in the manufacturing and logistics sectors, leading to a demand for high-quality logistics real estate.
“Vietnam has the ability to compete with Dubai and Hong Kong (China), even Singapore or Shanghai (China) to become a global freight transit center ,” Ms. Trang Bui assessed.
Businesses increase high-quality supply
A series of industrial infrastructure developers have quickly seized the opportunity by researching and developing warehouses according to the trend of smart, green, and comprehensive services.
Typically, Long Hau Joint Stock Company (stock code LHG) has recently started construction of Phase 2 of the Multi-purpose High-Rise Factory Complex with a scale of up to 30,000 m2 while Phase 1 has achieved an occupancy rate of nearly 100%. This is also the first 9-storey factory complex in Long An province.
Long Hau representative said that the factory complex meets international standards and applies many innovative technologies to increase the capacity of freight elevators, floor loads, wastewater treatment, etc., helping businesses save time and costs during operation. At the same time, this complex is developed synchronously with supporting facilities such as accommodation, dining, etc., creating a closed ecosystem.
Meanwhile, in Bac Ninh province, GELEX Group (stock code GEX) has developed the Industrial Center YP2C project with a scale of 34,500 m2 of ready-built factories and high-quality warehouses. In particular, the integrated ready-built warehouse has a flexible design to meet the individual needs of each customer.
The project also meets LEED (Leadership in Energy and Environmental Design) certification criteria to meet growing customer demands for sustainable development.
Choosing a different approach, Saigon VRG Investment Joint Stock Company (stock code SIP) focuses on developing ready-built factory complexes in key locations, close to the center of Ho Chi Minh City, and targets small and medium-sized enterprises as customers. These factory complexes are also integrated with office blocks and high-standard amenities.
In the coming time, the supply of ready-built warehouses is expected to be more abundant. To increase competitiveness, experts recommend that industrial warehouse investors should apply flexible leasing options, integrate mixed-use functions, and closely support customers in completing procedures and licenses.
(Source: https://tapchicongthuong.vn/kho-xuong-xay-san–hut-khach—gia-thue-du-bao-tang-nhiet-132828.htm)
