Southern industrial real estate supply: Sai Gon VRG has more than 1,200 hectares ready for lease

Sharing at the recent Business Connection Conference, a representative of Sai Gon VRG Investment Corporation (SIP) said that Sai Gon VRG currently has a land fund of more than 1,200 hectares. Of which, 700 hectares of land have been allocated (500 hectares of land is commercial); About 600 hectares of land have investment policies.

The Southern real estate market is vibrant, with high occupancy rate

As noted, the southern industrial real estate market will be vibrant in the third quarter of 2023 with the entry of many large-scale investment projects and increased supply.

Cushman & Wakefield's market report recorded that the average occupancy rate of southern industrial real estate reached nearly 82%, equivalent to a net absorption of 116 hectares, an increase of 66% compared to the second quarter. Of these, Long An and Ba Ria - Vung Tau have the highest net absorption rates, with proportions of about 59% and 28%, respectively. Good market movements show the recovery of demand and industrial production.

On the growth momentum, Cushman & Wakefield also forecasts that from now to 2026, there will be about 5,700 hectares of supply to the market. The supply mainly comes from localities neighboring Ho Chi Minh City such as Long An, Dong Nai, Binh Duong, Tay Ninh, Ba Ria - Vung Tau, etc. In the context of Ho Chi Minh City's increasingly limited land fund, neighboring provinces with large land funds and good attraction policies are the choice of many investors.

Along with the recovery of the industry, rental activities for ready-built factories and warehouses have become more vibrant, with the occupancy rate increasing 2.4 times compared to the second quarter, equivalent to 143,000 m² of ready-built factories. Is absorbed. Many ready-built factory and warehouse projects entering the market help increase supply: 25,000 m² in Phuoc Dong Industrial Park - Tay Ninh, 30,000 m² in Dong Nam Industrial Park - Cu Chi,... Demand for renting ready-built factories in the South is diverse, coming from many different industries such as textiles, chemicals, electronics, mechanics, food,...

Regarding the prospect of the ready-built factory market, Cushman & Wakefield Vietnam forecasts that the market will continue to be vibrant with about 2.5 million m² of supply from the end of 2023 to 2026. The factory absorption rate can continue to increase in the following quarters thanks to benefits from the flow of production facilities from China to Vietnam.

Sai Gon VRG – large and diverse supply source, ensuring sustainable development in the next 3-5 years

Sai Gon VRG Investment Corporation (SIP) is a large and reputable real estate developer in the southern market. This company develops and manages four industrial parks with a total area of more than 4,000 hectares including Phuoc Dong Industrial Park in Tay Ninh, Dong Nam Industrial Park in Ho Chi Minh City, Le Minh Xuan 3 Industrial Park in Ho Chi Minh City, and Loc An Industrial Park in Binh Son in Dong Nai. According to Mr. Tran Manh Hung, Chairman of the Board of Directors of Sai Gon VRG, the company currently has a land fund of more than 1,200 hectares, of which more than 600 hectares of land have investment policies. The Board of Directors assesses that with this land fund, the company will ensure sustainable development in the next 3-5 years.

Saigon VRG's industrial parks are highly appreciated thanks to their good locations in the center of Ho Chi Minh City, Tay Ninh province and Dong Nai province. The utility systems in industrial parks are also invested in modern and synchronous ways to serve businesses in the area. To meet investor needs, the company also proactively diversifies supply sources such as: industrial land for rent, ready-built factories/warehouses for rent, and custom-built factories. Therefore, Sai Gon VRG has successfully attracted more than 200 domestic and foreign investors with a total investment capital of more than 8 billion USD.

Phuoc Dong IP (Tay Ninh) is the largest project among Saigon VRG's industrial parks, with an area of 2,838 hectares. The project is divided into two areas A and B. Area A with a total investment capital of 2,603 billion VND, a commercial area of 817 hectares, and an occupancy rate of nearly 95%. Area B has a total investment capital of over 3,300 billion VND, an area of 903 hectares, and an occupancy rate currently reaches 30%.

Dong Nam Industrial Park has a total investment capital of 1,963 billion VND, area of 287 hectares, occupancy rate of 88%;

Le Minh Xuan 3 Industrial Park has a total investment capital of 2,065 billion VND, an area of 231 hectares, the current occupancy rate is 32%.

Loc An - Binh Son Industrial Park has a total investment capital of 1,984 billion VND, an area of 498 hectares, and an occupancy rate of nearly 64%.