Industrial real estate shows resilience with good occupancy rates

Vietnam’s industrial real estate market is currently experiencing a vibrant period, more promising than ever. Ossif Serviced Factory.

Industrial Real Estate: A “Rare” Bright Spot in a Volatile Market

Recently, many investors, traditionally strong in commercial housing, have shifted to industrial real estate. With the advantage of cheap labor and abundant resources. More and more international manufacturing enterprises are expressing their desire to set up factories in Vietnam. This shift presents a significant opportunity for the industrial real estate sector to thrive.

In fact, industrial real estate has shown strong resilience, maintaining good occupancy rates and steadily increasing rental prices over time. According to a report by Savills, industrial parks nationwide have occupancy rates exceeding 80%. The key northern provinces have reached 83%, while the southern provinces have reached 91%.

However, according to a report by CBRE, Vietnam’s industrial real estate sector continues to be a bright spot in the overall real estate market. In 2024, major global manufacturers have announced expansion plans and launched several projects across various regions in Vietnam. Additionally, the ready-built warehouse and factory market has grown impressively through 2024, as noted by CBRE.

Vietnam Industrial real estate market

Occupancy Rate of Ready-Built Factory Projects Hits a Three-Year High

In the ready-built factory segment, both the North and South regions recorded the highest absorption rates in the past three years. Specifically, the occupancy rate of ready-built factory projects in the South reached 89%, with around 0.5 million square meters of new supply.

Meanwhile, leasing transactions are primarily led by large developers and factories, with investment portfolios spread across multiple provinces and cities.

In the next three years, industrial land rental prices in the South are expected to increase by 3-7% annually. New industrial parks are expected to be concentrated in markets such as Binh Duong, Dong Nai, and Long An.

With the increasingly competitive nature of the industrial real estate market, Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Realtors (VARs), commented that the competition will continue to intensify, as industrial real estate remains the “star” segment of the market.

To maintain the attractiveness of industrial real estate and ensure continued strong growth in the future, infrastructure and transportation systems must be developed and planned effectively and synchronously. At the same time, developers and investors need to stay aligned with industry trends.

Ossif Serviced Factory: Efficient Production Solutions for Businesses

Located strategically along National Highway 50, directly connected to key trade arteries. Ossif Serviced Factory benefits from its proximity to an infrastructure area undergoing significant investment. It is an ideal destination for manufacturing businesses.

Ossif Serviced Factory is also conveniently close to seaports and river ports and adjacent to large-scale industrial parks in Long An and Ho Chi Minh City. This location allows businesses to easily access and connect with a broad community of domestic and foreign investors, including notable investors from Japan and China who are currently operating production facilities there.

Ossif Serviced Factory

Invested in on a large scale with diverse factory areas and modern infrastructure, Ossif Serviced Factory boasts a standard foundation load and roof peak height. It is fully equipped with an automatic fire protection system, fire trucks, ventilation system, lighting, water supply and drainage systems, and microbiological water filtration. The airy parking lot is convenient for loading goods, and the site benefits from 24/7 security.

If you are looking for a quality, affordable warehouse solution in the Southern region, please contact OSSIF.

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