Double-digit rise predicted in industrial land prices

The report by property consultancy CBRE attributes the increase to surging demand as manufacturing recovers.

Vietnam’s industrial property market is recovering as international flight routes resume and construction of manufacturing projects begin, it says.

Industrial parks have received a 10 percent year-on-year increase in inquiry in the north and 7 percent in the south. In the last six months, their occupancy was 80 percent in the north 90 percent in the south.

During this period, prices have risen by 5-12 percent year-on-year in the north and 8-13 percent in the south. Some parks have seen prices rise by 20 percent and 26 percent respectively.

In the next three years, over 14,000 hectares of industrial land are set to be added to the market, the report says.

Another report by property consultancy Cushman & Wakefield says HCMC now boasts the highest industrial land price of $200 per square meter per term, much higher than the southern average of $135. Hanoi leads the north at $139.9 against a regional average of $109.

Meanwhile, a Savills Vietnam report had said earlier that the recovery of the economy and successful vaccination programs have created a foundation for foreign businesses to believe in a strong recovery, leading to a rise in demand for industrial land.