Southern industrial park occupancy rate reaches 84.5 percent: CBRE
The occupancy rate at operational industrial parks in the major industrial localities in the south averaged 84.5 percent during January-September, according to a report from CBRE Vietnam.
The occupancy rate at operational industrial parks in the south stands at 84.5 percent during January-September. (Photo: VNA)
HCM City (VNA) – The occupancy rate at operational industrial parksin the major industrial localities in the south averaged 84.5 percent duringJanuary-September, according to a report from CBRE Vietnam.
In Ho Chi Minh City, the rate has surpassed 90 percent.
In the past two years, Vietnam’s industrial property market has seen significantsurges in occupancy rate and leasing prices.
CBRE Associate Director Pham Ngoc Thien Thanh said high leasing prices inseveral industrial parks in HCM City, Dong Nai and Long An, which went up 20-30percent from last year, coupled with two waves of the COVID-19 pandemic, causedsignificant difficulties to the market.
However, in Q3, investors and owners of ready-built factories offered manysupport policies to their customers, including reducing leasing prices andinfrastructure maintenance cost by 10-30 percent, helping slow down growth ofrental cost as compared to the last quarter.
With the pandemic’s impact, the ready-built factory and warehouse market haswitnessed a cooled leasing price while the number of inquiries continues torise in key industrial parks. It is expected that by the end of 2020, the totalsupply of ready-built factories and warehouses in the south will reach nearly2.7 million square metres, up 28.3 percent year on year, Thanh added.
According to CBRE, the coronavirus pandemic also served as a catalyst for astronger warehouse demand thanks to rapid expansion of e-commerce and backlogof goods. Leasing prices at new warehouses developed by foreign investorsinched up 5-10 percent in the first three quarters from the same time lastyear.
CBRE forecast that developing cold and frozen storage warehouses will be thetrend in the time ahead as fresh food distribution network is expandingnationwide.
Additionally, multi-storey warehouse is a good optionfor land constrained areas, helping e-commerce enterprises have larger storagespace./.
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The occupancy rate at operational industrial parks in the south stands at 84.5 percent during January-September. (Photo: VNA) 
