Since the beginning of 2023, industrial real estate is expected to be the highlight of the real estate market....
Since the beginning of 2023, industrial real estate is expected to be the highlight of the real estate market. In fact, what has happened over the past year has clearly demonstrated the strong “vitality” of this segment.
In general, in 2023, industrial real estate will see an increase in all aspects, from demand to supply, including selling prices and occupancy rates. According to experts, the motivation to help industrial real estate to «live healthy» despite market difficulties is due to the continuous influx of FDI. This is a solid foundation for the Vietnamese industrial real estate market to “weather the storm” and grow steadily.
To get a better overview of the industrial real estate market over the past year, Reatimes spoke with Doan Duy Hung, president of the Vietnam industrial real estate portal.
LTS: The real estate market is entering the last days of 2023. Compared to the beginning of the year, the health of the market has improved mainly thanks to the support of government policies, the State Bank of Vietnam and ministries and localities.
The business community is also aware of the restructuring of devices and products to “survive” in the context of market adjustment, so there have been development directions in line with the main market “flow”.
However, fundamentally, market difficulties are always present when capital flows have not improved and legal “bottlenecks” still need time to resolve. Therefore, although each segment of the real estate market has its own developments, it is generally quiet. There is even a segment that, according to experts, «slips» in the race to recovery, generally resort real estate.
In order to have a specific analysis, a multidimensional and objective evaluation of each segment of the real estate market during the past year, the Vietnam Real Estate Electronic Magazine (Reatimes) publishes the article: «A year of return on the real estate market».
I sincerely recommend it to readers!
High supply, high demand, rising rents
In 2023, the real estate market is generally very difficult due to the influence of many factors such as global geopolitical instability, economic decline, scarcity of cash flow and incomplete legal corridor. Almost all segments of this market are in a slump.
Whether it is land, considered the king investment channel, townhouses, businesses or holiday properties with low liquidity, transactions are difficult to establish. The seller cannot sell and the buyer does not buy.
However, unlike these segments, industrial real estate has established itself as a rare «light door» of the market, as it still maintains a stable growth dynamic.
Indeed, from the beginning of 2023, we predicted the development potential of industrial real estate, despite the general difficulties. However, what has happened over the past year has actually exceeded expectations in this segment.
Against the market current, industrial real estate "lives well" in 2023. (Photo: Nguyen Thuong)
In addition to demand, 2023 was also a remarkable year for the supply of the industrial real estate market. In the past year, the supply of industrial real estate has grown positively, with the total newly completed industrial land area reaching about 800 hectares.
According to the Department of Housing and Real Estate Market Management (Ministry of Construction), in the third quarter of 2023, the industrial real estate market was added new supply from a number of projects that were started such as: VSIP II in Nghe An; VSIP Can Tho; VSIP Bac Ninh II; Gia Binh II Industrial Park Bac Ninh; Long Thanh High-Tech Industrial Park Dong Nai...
Mr. Doan Duy Hung, Chairman of Vietnam Industrial Real Estate Information Portal
In addition, Vietnam is also increasingly improving the investment environment by perfecting the legal framework, supporting quick procedures, and strongly developing infrastructure, especially transport and logistics infrastructure. This has created more favorable conditions for the transportation of goods and materials, contributing to reducing production costs for businesses, thereby boosting the demand for industrial real estate.
Vietnam is a country with stable politics and a favorable business and investment environment to attract foreign investors, thereby promoting industrial real estate development. (Photo: Soha.vn)
Via Realtimes