Positive picture for real estate in the year of the Dragon

Forecasting the Vietnamese real estate market in the year of the Dragon - 2024, Mr. Alex Crane, CEO of Knight Frank Vietnam Real Estate Consulting Company, said that it is quite positive. According to Mr. Crane, the industrial real estate sector is the most promising with a bright outlook in terms of investment flow, development of high-quality ready-built works and increasing land prices.

Mr Crane said the supply of ready-built factories for lease has tripled since 2016. The ready-built factory and warehouse segment was virtually non-existent in 2016. But now the time is ripe, with ready-built factory supply expected to increase by 65% ​​over the next three years, meeting the needs of both existing tenants and new investors and businesses entering the market. Thanks to this abundant supply, rental prices will remain stable and within the budget of tenants.

Mr. Crane also appreciated Decree No. 08/2023/ND-CP because the Government allows businesses and organizations to issue bonds to balance cash flow for production and business and to pay off due bond obligations. Mr. Crane also noted that many bonds issued under Decree 08 will expire this year along with bonds issued in 2021. This may put many investors under pressure similar to the pressure from the capital market in the past two years.

Industrial real estate

Although the policy of stabilizing bank interest rates is quite good, many real estate investors still do not have easy access to loans. Therefore, Knight Frank predicts that the consequence will be a natural slowdown in supply, causing the residential real estate segment to decrease in price slowly this year. It is expected that the supply to the market in the year of the Dragon will decrease by more than 50% compared to the forecast figure in 2023, as many investors adjust the progress and postpone the project development schedule to 2025 and 2026.

In the high-end office and retail sector, Mr. Crane remains positive as occupancy rates and rental demand are quite good, with tenants being multinational companies and organizations that are constantly recruiting more staff.

The expert from Knight Frank also welcomed the authorities’ proposal not to tax second properties while the housing market is still shaping new rules. He also expressed optimism about the impact of the revised Land Law, considering it a positive step forward for the market in the long term.

Source: https://nld.com.vn/buc-tranh-kha-quan-cho-bat-dong-san-nam-giap-thin-196240219174804115.htm