Accordingly, the Southern industrial real estate market in the third quarter recorded many significant improve...
Accordingly, the Southern industrial real estate market in the third quarter recorded many significant improvements. The average occupancy rate reached nearly 82%, many new products were deployed.
According to market research reports from various companies, industrial real estate in the southern provinces is very vibrant. The average occupancy rate of industrial real estate in the South reached nearly 82%, equivalent to a net absorption of 116 hectares, an increase of 66% quarter-on-quarter; of which, Long An and Ba Ria-Vung Tau have the highest net absorption rates with 59% and 28% respectively.
Southern industrial real estate market is vibrant, with a high occupancy rate in the third quarter of this year (illustration)
The reason for the strong acceleration in this region's market is due to the recovery of the industrial production sector and new supply from Long An including the market entry of Nam Tan Tap Industrial Park developed by Saigontel, contributing about 171 hectares to the market. That creates great attraction for many businesses.
According to forecasts, future supply by 2026 will reach around 5,700 hectares, mainly coming from neighboring provinces of Ho Chi Minh City such as Binh Duong, Dong Nai, Long An, and Ba Ria-Vung Tau. In the context of high demand for land leasing, land rental prices are forecast to continue their upward trend. With continuous efforts from investors and local authorities, there will be an abundant supply of new industrial land entering the market.
The average rental price remains stable on a quarterly and annual basis, reaching 4.7 USD/m2/month. Most projects have maintained their rental prices amid competitive supply. High-demand rental locations such as Dong Nai and Ba Ria-Vung Tau have the highest year-on-year growth, in the range of 2.4 - 2.5%
New industrial projects and land funds in Long An and Ba Ria-Vung Tau are positive bright spots attracting investors and tenants in these areas.
According to many predictions, the industrial real estate market in the southern provinces will continue to thrive in the near future. This is due to the investment in various projects and the increasing supply in the market.
According to the Justice Newspaper