Average asking rents of industrial real estate in Hanoi still trended upwards in the second quarter (Q2) this year, up 2.1% quarter-on-quarter and 4.1% year-on-year (yoy), Cushman & Wakefield has said in a report. The upward trend was due to high rent quoted by the newly added project as well as rising rents of existing industrial parks (IPs) for the limited availability of land. Average rent in Hanoi remained the highest among in northern Vietnam, the global real estate services firm added.
The average rent in the city in the quarter was VND2.7 million dong or US$118.7 per square meter per term and the vacancy rate averaged at 17.8%. C&W also noted that the industry real estate market in the city saw steadily improved performance. No new supply was added in Q2/2018. Total industrial stock stood at over 1,800 hectares, unchanged on quarter and increased by 1% on year.
Market performance continued to improve with occupancy up 2.6 percentage points on quarter and 5.2 percentage points on year, registering net absorption of approximately 50 ha, significantly contributed by Hoa Lac Hitech Park, Noi Bai Phase 3, while other projects were fully occupied or had limited vacant land.
JLL Vietnam has recently said Vietnam can be a new industrial powerhouse in Southeast Asia and this will open up huge opportunities for industrial property developers. The factors behind the growth are a young, plentiful, low cost workforce, the country’s deepened integration, and a shift of manufacturing facilities from China to Vietnam.