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High demand pushes industrial land rent up

May 25, 2022 by e.vnexpress.net

It was followed by Hanoi at $140, and Da Nang City at $80, according to a report by real estate consultancy Cushman Wakefield.

The average rent in the southern region is $135, and in the north, $109.

Northern industrial hubs are seeing an average occupancy of 80 percent, thanks to multinationals' transition of manufacturing from China.

The central region has an average rent of $34, with an occupancy of 67 percent.

The main industries there are food processing, heavy industries, oil, energy, textile and footwear.

Another report by real estate consultancy Jones Lang LaSalle (JLL) showed that rents were $120 per square meter per term in the first quarter in southern localities, up 9 percent year-on-year.

The rise came as foreign companies increased their investment in Vietnam as the economy reopened.

Real estate consultancy Colliers Vietnam said HCMC has seen industrial land rent rising by 8-9 percent annually in recent years, and companies are expanding to other southern localities like Binh Duong and Long An due to dwindling space in the largest city in Vietnam.

Savills Vietnam said that the government is encouraging foreign companies to move their factories to Vietnam with a priority for sectors with high added value.

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