Additional supply has led to a continued increase in demand for industrial real estate

The Department of Housing and Real Estate Market Management (Ministry of Construction) reported that in Q3/2023, the industrial real estate market received new supply from several newly commenced projects.

The amount of FDI in the manufacturing industry during the first nine months of 2023 continued to lead in total investment capital, reaching over 14 billion USD, accounting for nearly 69.3% of the total registered investment capital. This marks a 15.5% increase compared to the same period in 2022. The trend of multinational corporations shifting their investment capital into Vietnam, particularly in the industrial real estate sector, has positively impacted the industrial real estate demand, showing significant growth in 2023.

Notably, the demand for industrial real estate in the northern region is high in the electronics sector, while in the southern region, it's predominantly in the automotive, garment, and packaging industries.

The survey conducted by some real estate service businesses indicates a slight increase in demand for leasing and leasing capacity of industrial real estate in Q3/2023 compared to the previous quarter.The occupancy rate of industrial parks in key markets in the northern and southern regions remains at about 85% to 90% for all types of industrial land, factories, and pre-built warehouses.

The transaction rate for industrial land has increased by approximately 5.9% compared to the previous quarter, showing a cumulative increase of over 20% for the first nine months of 2023 compared to the entire year of 2022.

The average rental price in industrial parks in Q3/2023 remained relatively stable compared to Q2/2023 (the average industrial land rent in level 1 markets in the South reached 189 USD/m2/lease term, a slight 1% increase from the previous quarter and a 13% increase compared to the same period last year).