Rental land at southern IPs becoming scarce: JLL

Land for lease at industrial parks (IPs) in southern Vietnam is becoming increasingly scarce, according to data from real estate consultants Jones Lang LaSalle (JLL) on the supply of industrial land in southern IPs during the second quarter of this year.

rental land at southern ips becoming scarce: jll hinh 0
Land for lease at industrial parks (IPs) in the south of Vietnam is becoming increasingly scarce.

Its figures show that the total area for lease in the region was 25,045 ha.

Land at some IPs in HCM City has yet to become available for lease due to difficulties in site clearance and compensation and the impact of COVID-19, in contrast to surging demand.

As of the end of June, Vietnam was among the first countries to have fully opened its economy. Land transactions, however, remain modest due to the pandemic ravaging other countries.

IP occupancy rate stood at about 84% at the end of Q2.

Notably, land rental prices in the period rose by 9.7% year-on-year despite the impact of the pandemic. Rents on ready-built factories were stable.

Negotiations on land leases will stagnate until the end of the year, JLL experts noted, adding that the market will bounce back once the pandemic is brought under control.