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Property

IP rents up in both HCMC and Hanoi

Released at: 15:33, 30/07/2018

IP rents up in both HCMC and Hanoi

Photo from tapchikientruc.vn

Both seeing higher rents at new and existing IPs.

by Linh San

Average asking rents at industrial parks (IPs) in Hanoi and Ho Chi Minh City are heading upwards, according to the latest report from Cushman & Wakefield.

Average asking rents for IPs in Ho Chi Minh City increased 1.0 per cent quarter-on-quarter and 2.5 per cent year-on-year, to reach VND3,072,000 ($134.65) per sq m per term. The average rent at IPs in Ho Chi Minh City has experienced an upward trend in the last five years, up 1.6 per cent per year on average, mainly due to increasing investment capital in the city.

Total industrial stock in Ho Chi Minh City remained unchanged on a quarterly and yearly basis, with a total leasable area of 2,480 ha from 19 operating industrial parks. Market performance has improved modestly, with occupancy up 4.0 ppts year-on-year, to 70.2 per cent. In 2018, HEPZA continues to attract investment capital in industries and support industries in industrial parks by focusing on improving administrative processes.

Sub-market

Inventory

(ha)

Vacancy rate

Planned & under construction

 (ha)

Average asking rents

VND/sq m/mth

$/sq m/mth

District 7

195

2.7%

0

VND6,046,000

$265.0

Nha Be District

506

37.6%

500

VND2,688,000

$117.8

Thu Duc District

110

0.0%

0

VND4,022,000

$176.3

District 2

72

0.0%

0

VND2,281,000

$100.0

Binh Tan District

321

0.0%

0

VND5,087,000

$223.0

Tan Phu District

92

0.0%

0

VND4,563,000

$200.0

Binh Chanh District

409

55.3%

1,517

VND2,606,000

$114.2

District 12

22

0.0%

0

VND2,272,000

$99.6

Cu Chi District

753

42.3%

245

VND1,734,000

$76.0

TOTAL

2,480

29.8%

2,262

VND3,072,000

$134.7

SIGNIFICANT FUTURE PROJECTS IN HCMC

Property

Sub-market

Ha

Construction status

Expected completion

Hoa Phu - Phase 2

Cu Chi

72

Under Construction

2018

Tay Bac Cu Chi - Phase 2

Cu Chi

173

Under Construction

2020

Hiep Phuoc - Phase 3

Nha Be

500

Site Clearance & Compensation

2020

Vinh Loc 1 - Phase 3

Binh Chanh

200

Site Clearance & Compensation

2020

In Hanoi, average asking rents were still trending upwards, at 2.1 per cent quarter-on-quarter and 4.1 per cent year-on-year due to high rents quoted by new projects as well as rising rents at existing IPs given the limited availability of land. Average rents in Hanoi remain the highest in the north.

No new supply in Hanoi was added in the second quarter. Total industrial stock stood at over 1,800 ha, unchanged quarter-on-quarter and up 1 per cent year-on-year. Market performance continued to improve, with occupancy up 2.6 percentage points quarter-on-quarter and 5.2 percentage points year-on-year, registering net absorption of approximately 50 ha, contributed to significantly by the Hoa Lac Hi-Tech Park and Noi Bai Phase 3, while other projects were fully occupied or had limited vacancies.

Sub-market

Inventory

(ha)

Vacancy rate

Planned & under construction (ha)

Average rents

VND/sq m/mth

$/sq m/mth

Thach That - Quoc Oai

705

39.0%

500

VND2,140,000

$93.8

Me Linh

344

2.1%

266

VND2,966,000

$130.0

Dong Anh

274

0.0%

300

VND2,738,000

$120.0

Soc Son

182

9.8%

340

VND3,327,000

$145.8

Chuong My

170

10.9%

175

VND2,904,000

$127.3

Gia Lam

97

0.0%

0

VND3,878,000

$170.0

Tu Liem

30

4.2%

200

VND3,941,000

$172.7

HANOI TOTAL

1,802

17.8%

1781

VND2,707,000

$118.7

SIGNIFICANT FUTURE PROJECTS IN HANOI

Property

Sub-market

Major tenant

Ha

Completion date

Soc Son Clean IP

Soc Son

N/A

340

2020

Dong Anh IP

Dong Anh

N/A

300

2020

Quang Minh II IP

Me Linh

N/A

266

2020

Phung Hiep IP

Chuong My

N/A

175

2020

Thanh My Xuan Son IP

Son Tay

N/A

100

2020

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