The average rental price of industrial land in the tier 1 market (developed industrial capital) in the South increased by 8-13% year-on-year and reached $166 per square meter over the lease term, 38% higher than in the North. .
A recent report by Cushman & Wakefield Vietnam shows that the average primary rental price of industrial land in the southern key economic region is $159/m2 (about 3.8 million VND) for the whole rental cycle, which is higher. 42% compared to the Northern key economic region (112 USD per m2).
Because of early development, ahead in attracting investment with the dynamic nucleus of Ho Chi Minh City, the industrial land rental price in the South surpassed the North in 40%.
Leading the South is the urban core of Ho Chi Minh City with industrial land rent currently reaching 300 USD per m2 for the whole rental cycle – peaking in industrial land rental prices across the country, 28% higher than that of industrial land. Hanoi (235 USD per m2).
CBRE Vietnam's report also shows that, in the South, the average rental price of industrial land in the tier 1 market (developed industrial capital) increased by 8-13% year on year and reached $166/m2 per period. lease term, 38% higher than in the North. The average rent of the northern tier-1 markets was at $120/m2 for the lease term, up 11% year-on-year.
The reason that the industrial land rental price in the South is higher than in the North is because the industrial land market in the South was developed earlier and longer. However, the industrial zone land supply in the South is mainly concentrated in the neighboring provinces of Ho Chi Minh City, or Cai Mep port and Cat Lai port. This causes the southern region to have a shortage of land available for industrial development, which is also a factor pushing up rents. The increase may fluctuate around 5% in 2023.