Rents for industrial land in Southern Vietnam up 4.6% in Q4

But warehouse rents remained stable.

According to Cushman and Wakefield, the industrial land market in Vietnam’s Southern Key Economic Zone did not have any new supply in Q4 2024, with the total existing supply reaching 28,500 ha, stable quarter-on-quarter and up 1.6% year-on-year. 

The supply of ready-built factories and warehouses saw six new projects, bringing the total supply to 6,424,000 sqm and 6,300,700 sqm, respectively. 

Here’s more from Cushman and Wakefield:

While the average rent for warehouses remained stable at $4.5/sqm/month, the rent for industrial land increased by 4.6% year-on-year, reaching $176/sqm/lease term; the rent for ready-built factories also adjusted up by 2.3% year-on-year to $4.8/sqm/month.

Demand for industrial land and ready-built factories continued to grow. Q4 2024 recorded 64 ha of industrial land transactions, down 40.5% quarter-on-quarter and 23.5% year-on-year. Long An and Ba Ria - Vung Tau contributed significantly to this absorption, accounting for about 48% and 35% of the total, respectively. 

The total net absorption of ready-built factories in this quarter was over 226,000 sqm, down 7.9% quarter-on-quarter but nearly three times the figure of last year. Binh Duong led in net absorption, accounting for 76% of the total, followed by Dong Nai with 15%. Demand for industrial land mainly came from sectors such as Machinery & Equipment, Textiles, Plastics, and Basic Metals.

For ready-built warehouses, the total net absorption reached nearly 45,400 sqm, down 7.8% quarter-on-quarter but nearly three times the figure of the same period last year. Dong Nai led in warehouse demand with 57% of the total net absorption, followed by Ba Ria - Vung Tau with 22%. Binh Duong and Dong Nai each contributed about 10-11% of the total demand in this quarter.

In Q4 2024, the government approved investment policies for over 1,000 ha of industrial land in the southern region, including the expansion of My Xuan B1 - Conac Industrial Park in Ba Ria - Vung Tau and phase 1 of Bau Can - Tan Hiep in Dong Nai. 

Overall, industrial parks in the southern region will benefit greatly from new infrastructure projects such as Long Thanh Airport, Bien Hoa - Vung Tau Expressway, and Ho Chi Minh City Ring Road 3, which are being accelerated for completion by 2026. The interest and potential in this industrial land are likely to boost both demand and prices in the future.