Workshop rent in Binh Duong increased sharply in early 2019

In recent years, the workshop leasing market has been volatile. Demand for renting workshops of domestic and foreign enterprises increased dramatically. This leads to escalating rents as well. Binh Duong is one of the key markets attracting many units to invest in. Therefore, Binh Duong workshop rents have risen sharply in early 2019.

Overview of increase in Binh Duong workshop rents

With a large number of private enterprises coming to Binh Duong, the number of workshop lessors in Binh Duong is increasing. A few years ago, in Binh Duong, the rental price often ranged from USD 1.7 – USD 2.4/m2/month. However, from mid-2018 to June 2019, Binh Duong workshop rent increased by US $ 3 - US $ 5/m2/month. Thus, the average increase ranges from 12-13%/year. Foreign visitors account for 70% - 80% of the total number of lesses. Most of these are large enterprises with large workshop space. According to CBRE Vietnam's forecast, not only in Binh Duong, the industrial real estate market in the whole country will continue to be active for many years to come.

The cause of the increase in workshop rent

Firstly, the leasing of workshops and the operation of the industrial real estate market in Binh Duong has become more active partly thanks to the influence of the US-China trade war. Specifically, many manufacturing enterprises, fearing the effects of this war, have massively sought to "flee" from China. Vietnam in general and Binh Duong in particular, is targeted as the ideal destination.

Secondly, Binh Duong is an important political, economic, cultural and social centre as well as a transport hub in the southern key economic region. It has an open traffic system, connecting with neighbouring provinces and cities. This makes the transportation of goods to and from Binh Duong becomes easier. Therefore, the number of investors coming to Binh Duong is also higher, resulting in an increase in workshop rents.

Enterprises are turning to renting workshops in Long An

In the context of the rapid increase in workshop rent in Binh Duong, many investors changed their mind. And the object targeted by investors is the workshops for rent in Long An. As explained by these investors, Binh Duong is a place with good terrain and many opportunities. However, choosing a farther but more affordable place is also a smart choice. They believe that new lands will create more investment opportunities.

Thus, Binh Duong workshop rent is one of the minus points in this market. Hopefully, this place will adjust the rents more appropriately. Only by this will Binh Duong continue to promote its potential.