Southeast Asia is a region that has attracted strong investment capital in recent times. This is thanks to abundant natural resources, labor force and good rental fees, many government support policies, etc. If you plan to invest in a country in the Southeast Asia, warehouse rental costs are one of the important factors to consider. Let KTG Industrial update the latest and most detailed warehouse rental costs in Southeast Asia in the following article. Don’t miss it!
Warehouse rental costs in Southeast Asia
Here are the warehouse rental prices in industrial parks in each country in the Southeast Asia region:
Vietnam
Vietnam has a total area of 331,000 km2 and borders many large countries in Asia such as the People’s Republic of China, Laos, Cambodia, … [1] Not only that, this country also has many international airports (such as Noi Bai, Tan Son Nhat, Phu Bai, …), international seaports (such as Hai Phong, Vung Tau, …) and a high-class infrastructure. In addition, Vietnam has a temperate climate all year round with a relatively low number of natural disasters and abundant natural resources and minerals. All of these factors create attractive investment opportunities for domestic and foreign enterprises.
In fact, warehouse rental prices in Vietnam are still significantly lower than in the US and Europe. Specifically, factory rental prices range from $4-$7/m2 and warehouse rental prices are $2-$6/m2. However, rental prices vary depending on the location of the industrial park, area, quantity, term, etc.
Some attractive warehouse rental areas that attract many international investors include Yen Phong IIC, Nhon Trach, An Phuoc, Tam Phuoc Industrial Park, etc.
The cost of renting warehouses in Vietnam varies by region
Singapore
Singapore is the fastest growing country in Southeast Asia despite having an area of less than 660 km2 and a population of about 5 million people.
It can be explained that Singapore prioritizes the development of high-tech industries and has policies to encourage domestic and international talent properly (such as simplifying naturalization procedures). In particular, this country always prioritizes learning foreign languages (English) to help the country integrate internationally easily.
Because of these reasons, warehouse rental prices in Singapore have continuously increased sharply in recent years. Average ranges from $1.80 to $3.80 per square meter.
Thailand
While other countries are struggling to overcome the consequences of COVID-19 or inflation, Thailand has quickly achieved many impressive economic achievements with the potential to grow 2.8% in 2025 compared to the previous year. Contributing to this strong development, important factors such as the constantly expanding e-commerce, large foreign investment capital, smooth operation of industrial real estate supply chains, etc. cannot be ignored.
Accordingly, as of early 2024, the current factory rental price in Thailand is 159.3 THB/m2 and is expected to increase steadily by 0.79%/quarter.
Warehouse rental prices in Thailand increase steadily every year
Malaysia
Malaysia, not inferior to Singapore or Thailand, has become an attractive destination for many international investors. Because this country has a prime location, it can trade with neighboring Southeast Asian countries by sea, air, etc. Moreover, the warehouse area here is extremely diverse, suitable for many types of businesses and costs of each investor.
Typically, the Klang Valley, Penang and Johor are the central and key areas of Malaysia, so the rental cost is quite high, around 4 – 25 RM Malaysia per square foot. For business owners with more limited costs, you can consider Ipoh, Melaka and Kuantan (estimated at 1.50 RM to 3.50 RM per square foot).
Indonesia
Finally, in the list of Southeast Asian countries that attract the most foreign investment, Indonesia must be mentioned. This location facilitates the production activities of many different industries when there is a balanced natural ecosystem, proactively innovating towards sustainability (such as using renewable energy, smart waste management, etc.)
Similar to other places, the cost of renting industrial land here varies widely depending on location, warehouse size, quality of facilities, etc. Specifically, Jakarta and Surabaya are the two places with the most potential in Indonesia when there are currently many warehouses of e-commerce businesses located here. Therefore, the warehouse rental fee is estimated at Rp 60,000/m2.
Indonesia has a number of potential areas for warehousing such as Jakarta and Surabaya
Factors affecting warehouse rental costs in Southeast Asia
The above industrial park rental costs in Southeast Asia are for reference only, fluctuating constantly every day. The following are important criteria that determine land rental prices:
Location
If the warehouse is located in the city center, accessible to many agents/stores/consumers, the rental price will of course be higher than that of facilities in the suburbs. In addition, choosing to rent a warehouse or factory in an area with a high-quality internal road system will have a slightly higher rental price than places where the investor has to arrange transportation himself.
Size and space requirements
The larger the warehouse area, the higher the monthly rental cost (or rental cycle). In addition, if the infrastructure can be expanded or contracted depending on the business situation of the business owner, it will of course affect the land rental cost compared to fixed land/warehouse.
Warehouse type
The type of warehouse is also a factor that affects the cost of renting industrial land/warehouse. For example, a basic warehouse without internal facilities will have a lower rental price than a warehouse with ready-made equipment.
Depending on the type of warehouse, the rental cost varies between leasing units
Rental terms
Usually, support policies for long-term leases are more attractive than those for short-term leases. In addition, real estate leasing service providers also have many incentives on taxes, services, etc. for first-time business owners.
Services
A warehouse/factory, in addition to the basic structure, also comes with a security system, housing services and fire protection services, always has a higher monthly rental cost than other types of warehouses.
Why are warehouse rental prices increasing in Southeast Asia?
The rapid expansion of online business on e-commerce platforms is one of the leading factors causing industrial land rental prices to increase. Specifically, to operate the platform well, businesses must have warehouses to store goods because the number of orders each day is very large. However, developed countries seem to have no more space for this need, so they have to expand to other regions – typically Southeast Asia.
In addition, there are many criteria that cause land rental prices to increase sharply. For example, the number of foreign investors pouring capital into Southeast Asia is constantly increasing and the cost of maintaining warehouse operations is quite high.
KTG Industrial – A reputable warehouse rental solution in Southeast Asia
With the operating orientation of a unit specializing in providing high-end warehouse and factory rental services, KTG Industrial is currently present in many key industrial park projects in Vietnam. Not only providing a variety of choices of designs, sizes, facilities, … in each factory or warehouse, we also have a team of highly qualified experts who understand the characteristics of each area, so they are ready to support customers in finding a place to invest at a good price, suitable for their needs. In addition, all warehouses developed by KTG Industrial ensure international quality standards, sustainable over time, so businesses can rest assured in long-term operation.
KTG Industrial always ensures consistency in quality for all warehouses operated by the unit
The above article has updated the latest information on Southeast Asia warehouse rental costs. However, in reality, rental prices can fluctuate depending on many factors such as the number of warehouses, area, term, leasing unit,… Therefore, businesses should contact the leasing unit directly to receive detailed advice and update the most accurate price.
