Northern Industrial Land and Ready-built Factory 3Q21

Market is vibrant with new supply in both industrial land and RBF 

In Q321, Hung Yen continued to welcome new supply from Pho Noi A industrial park - expanded phase, with a total area of ​​93ha, offered by Hoa Phat. In Bac Ninh, 70% of the total area in Yen Phong 2C IP has completed the site clearance process, pushing up the total area of ​​industrial land in the North to about 9,900 hectares.

The RBF market recorded a new supply in Nam Dinh Vu Industrial Park, Hai Phong, and thus, the total supply reached 2.1 million m2 by 3Q21. In the past quarter, 7-floor RBF with a total area of ​​15,000 m2 has been constructed in the high-tech area in VSIP Bac Ninh Industrial Park, mirroring an emerging trend for multi-floor RBF development in the Northern area.  

Hai Phong and Bac Ninh helped to stabilise occupancy rate in Northern region

Despite the adverse impacts of the pandemic, the northern industrial real estate market in 3Q21 is vibrant. Particularly in Hai Phong, where LG has announced to invest an additional USD 1.4 billion to expand production in Trang Due IP. Market in Southern Hanoi like Thai Binh or the Northwest of Hanoi like Vinh Phuc or Phu Tho also recorded new transactions. The occupancy rate of the northern IPs reached 72%, lower than 2Q21 owing to the new supply. The RBF market is also stable, with an occupancy rate of 89%.

Land prices and rents remain stable

With the resumption of operations in the "new normal" of IP in Bac Ninh from July and stable FDI into Hai Phong and Bac Ninh, industrial land prices remained in an upward trend of 6.1% y-o-y, standing at USD 108 per sqm per lease term in 3Q2021. RBF market also had a stable performance, with the average rental price of USD 4.6 per sqm per month, recording a growth of 4.7% y-o-y, lower than the rate seen in 2Q21.