DEVELOPMENT TRENDS OF INDUSTRIAL REAL ESTATE IN 2021
After two years of rapid development, the industrial park is now expanding into satellite towns and setting ecological targets to maintain the growth trend.
Colliers Vietnam has released its report on 3 development trends of industrial real estate in 2021 and considered that this segment is in the fast growth cycle with high rents and ideal rates. Currently, the average price for rent of patch of industrial land in early months of year has jumped to $165 per square meter, while this figure in Hanoi also reached $140 per square meter for the lease term.ngưỡng 165 USD một m2, trong khi con số này ở Hà Nội cũng lên đến 140 USD một m2 cho kỳ hạn thuê.
To prolong the growth cycle, developers and managers of industrial parks are constantly updating many new trends, upgrade resources to promptly serve the booming demand for production land, factories and warehouses when the pandemic changes and pivots the global supply chain. Here are 3 development trends of industrial real estate in this year that Colliers predicts will drive investment over the next decade.
Diversifying the supply of satellite industrial parks
In 2021, the supply of industrial real estate is planned and expected to increase significantly, pouring into the satellites of two largest cities in the country. The development of new industrial zones in neighboring provinces of Ho Chi Minh City and Hanoi will contribute to reducing the heat of continuously escalating rents in the last 2 years. Currently, in the North, many investors have stepped up their search for industrial land in provinces such as Hung Yen, Hai Duong or Bac Ninh, where land rents are lower and land funds are more abundant.
There’re some plans to expand industrial parks to attract the foreign investment capital. For example, Long An province has been approved to add 3 new industrial parks to the national planning, namely Saigon – Mekong Industrial Park with an area of 200 hectares, Tan Tap industrial park with an area of 654 hectares and Loc Giang industrial park covers an area of 466 hectares.
Meanwhile, six localities of Dong Nai province such as Long Thanh, Cam My, Thong Nhat, Trang Bom, Nhon Trach and Long Khanh districts are plans to build more industrial estates, ranging in scale from 200 ha to 900 ha, to solve the shortage of acreage.
The orientation of diversifying the supply to satellite industrial parks can help the industrial real estate market continue to extend the growth cycle in the next decade by catching up with large potential demand.
BW 2A factory for lease is constructed by Golden Lotus Construction JCS
Innovating the ecological industrial park model
Colliers Vietnam said that the eco-industrial park is a suitable model for sustainable development and is gradually being promoted by many businesses and manufacturers. Accordingly, businesses jointly commit, cooperate and act to achieve the common goals of resource use and environmental protection.
The Asian Development Bank (ADB)’s handbook on the development of eco-industrial parks for developing countries says Eco-Industrial Parks can be divided into 5 categories: Agro-eco-industrial parks, petrochemical or chemical refining eco-industrial parks, renewable resource eco-industrial parks, and power plant eco-industrial parks and renewable energy eco-industrial park.
This model will play an important role in the sustainable development strategy in general, helping to reduce resource exploitation, limiting the environmental impact while not affecting the performance of businesses.
Specific steps are expected to be to improve the technology transfer capacity of enterprises, introduce advanced technology and reduce emissions, and transform some industrial zones into an eco-industrial park model and find the most effective method.
Increasing synchronous connectivity in industrial parks
The localities, especially the capitals of industrial parks, are having a mechanism to regularly update the situation of industrial park development, development policies, good strategy to develop together and form a synchronous system. This mechanism will also help localities solve many arising problems more effectively, make good use of the advantages of each province, create harmony in the inter-regional development process, and make positive contribution to the national economic development strategy.
The linkage between industrial zones is also very important to develop logistics and commodity production chains. Thereby improving the competitiveness of products, reducing production costs and improving the sustainability of the industry.