What is driving industrial property?

KCN An Phát 1 tại Hải Dương diện tích cho thuê 130ha

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Bà Rịa- Vũng Tàu là điểm nóng IP

2,117ha in Long An, Binh Duong, and Dong Nai have been added to the market after considerable delays in 2H21 owing to Covid-19, resulting in the 8.2% yoy increase in leasable area (c.27,950ha). Since the approval process for new projects has been delayed as a result of the shift in senior officials in Southern localities, there will be no new supply in 3Q22.

Total industrial land area expanded by 9.2% yoy to approximately 41,950 ha in 9M22, while average occupancy and rental price improved by 1.3% points yoy to 85.2% and US$125/sqm/lease term, respectively. Ba Ria- Vung Tau had the highest 3Q22 land rental price growth (c. 19% yoy to US$101/sqm/lease term) among five important Southern industrial cities/provinces despite having a year of restricted new supply. The highest asking price is in HCMC, where good locations can fetch up to US$300/sqm/lease period.

The introduction of new supply across all cities and provinces in all grades boosted the total supply to almost 3.36 million square meters, of which modern WH accounted for 39% in the Southern market. With more than 1.4 million square meters, Binh Duong continued to hold the top spot among the five major Southern cities and provinces, accounting for 42% of the total supply as of 3Q22.

According to VNDirect, there was a strong RBF supply put into operation in 3Q22, with a total supply of c.324,333 sq m from BWID Nhon Trach 1 & 2 and one project in HCMC, according to JLL.For 9M22, RBF total supply rose by 27.7% yoy to 4.78m sqm mostly come from Dong Nai, Long An and HCMC with contributions of 41.8%/31.0% and 22.7%, respectively.

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Rental prices climbed to a new high

For 9M22, Northern Market just recorded only two projects to be put into operation: Thuan Thanh 1 IP in Bac Ninh and An Phat 1 IP in Hai Duong with leasable areas of 160ha and 130ha, respectively, leading to a 2.5% yoy increase in leasable area (c.11,333ha). At the end of 3Q22, 9M22 total land area increased 2.7% year on year to 16,072 ha, while occupancy rate increased 4.7% point year on year to 80-82%.

Land rental prices in five key northern industrial cities and provinces remained high in 3Q22, with an average increase of 12% year over year to US$121 per sq m per lease term, similar to the Southern market.

"We see Hung Yen as a bright spot, with the highest increase of c.17% yoy to US$100/sqm/lease term in 3Q22 among five key northern industrial cities/provinces. This led to selected projects increased their asking rent price when occupancy rate improved", said VNDirect.

Positive market sentiment continued as large transactions of 10-15 ha were recorded in 3Q22. According to CBRE, 3Q22 net absorption in Tier-1 (excluding Vinh Phuc) rose 12.7% qoq to 133ha. The significant transactions come from sectors such as electronics, energy, and logistics.

According to JLL, new supply in the WH market increased by 39.0% year on year to 1.4 million square feet."On 9M22, we see new supply tend movement to modern supply with some notable projects such as: Mapletree LP in Hung Yen, Logis United and Deep C in Hai Phong… The high-quality supply to be put into operation in 9M22 led to a 5.7% yoy increase in the 3Q22 WH rental price (c.US$4.4/sqm/month)", said VNDirect.

Đối với thị trường RBF, sau nửa năm khan hiếm nguồn cung, Q3/22 đã đón nhận nguồn cung mới 35.834 m2 từ 3 dự án: Yên Phong 2C giai đoạn 1, U&Me Nam Cầu Kiền và Yên Mỹ II. Trong 9T22, nguồn cung mới tăng 9,5% so với cùng kỳ lên 2,3 triệu m2. Hải Phòng duy trì vị trí dẫn đầu với 30,6% thị phần nguồn cung phía Bắc. Giá thuê trung bình tăng 3,5% so với cùng kỳ lên 4,8 USD/m2/tháng. Do thiếu nguồn cung, Hà Nội chứng kiến ​​giá thuê tăng mạnh nhất trong số 5 tỉnh và thành phố công nghiệp lớn ở miền Bắc Trung Quốc.