NIndustrial real estate supply increases
According to Newspaper Invest, foreign direct investment capital in the first 2 months of the year grew impressively with more than 4,29 billion USD and increased demand for warehouse rental are the two main reasons driving the increase in industrial real estate supply.
According to a report by global real estate consulting firm Jones Lang Lasalle (JLL), by the end of 2024, the total supply of key industrial real estate is expected to reach 1,4 million m2, 1,3 times higher than the supply of key industrial real estate. supply in 2023. Accordingly, the North is expected to welcome new industrial and logistics real estate supply of up to 322.000 m2. Previously, JLL also forecast that by 2024 the North will have an additional 700.000 m2 of ready-built factories, bringing the total supply to increase 1,6 times compared to 2023.
According to the above report, the occupied area will grow positively compared to 2023. Previously, the first 6 months of 2023 industrial real estate fell into a gloomy period, then gradually grew steadily in the last 6 months of the year. .
Impressive growth in foreign direct investment capital in the first 2 months of the year with more than 4,29 billion USD and increased demand for warehouse rental are the two main reasons driving the increase in industrial real estate supply. Illustration photo from the internet
In the South, according to Cushman & Wakefield, with the adjustment, announcement and approval of the Provincial Master Plan (period 2021 - 2030, vision to 2050), the new supply of industrial park land will constantly increase in the future. period 2024 - 2026 and is forecast to be about 6.100 hectares, solving the limited situation of industrial land fund.
The ready-built factory market will welcome a supply of about 2,2 million m2 during this period. Future demand for factory rentals will be maintained by both large manufacturing companies and small and medium-sized enterprises, following the wave of manufacturing FDI pouring into Vietnam.
As for the ready-built warehouse market, it is expected that about 1,4 million m2 will enter the market. In addition to retailers, third-party logistics and e-commerce, warehouse demand also includes manufacturers and distributors.
Many prospects from businesses with large industrial land funds
According to Business Forum, data from the Ministry of Planning and Investment, as of February 20, 2, foreign investors have invested in 2024 industries out of a total of 16 national economic industries. Total newly registered capital, adjustments and capital contributions, share purchases, and capital contributions from foreign investors reached more than 21 billion USD, an increase of 4,29% over the same period in 38,6. Implemented capital of FDI projects are estimated to reach about 2023 billion USD, an increase of 2,8% over the same period in 9,8. Of which, the real estate business ranks second with a total investment capital of nearly 2023 billion USD, accounting for more than 2% of total registered investment capital, more than 1,41 times higher than the same period.
Analysts assess that FDI capital will continue to increase in 2024, focusing on the manufacturing and technology sectors. Along with that, the demand for land rental in industrial zones will increase in 2024.
Currently, the country has 412 established industrial parks, 293 industrial parks in operation and 119 industrial parks under construction. Many industrial parks have high occupancy rates. Specifically, according to CBRE, in 2023, the Northern region will record an average occupancy rate of 81%, while the Southern region will reach 92%. This proves that demand for industrial real estate is always present and increasing steadily.
It is forecast that until the end of 2024, finance may still be limited, making it difficult to meet actual needs due to issues of land valuation, conversion of agricultural land into industrial park land and progress. site clearance compensation. This creates special opportunities for industrial parks that already have large land funds for rent. Businesses can take advantage of market opportunities to develop and expand the scale of their operations when supply is limited.
Kinh Bac Urban Development Corporation - JSC (Code: KBC) is expected to continue to record strong growth in industrial park land rental revenue in the next quarters of 2024. Based on the Margins With a signed memorandum of understanding and a land fund of nearly 150 hectares ready for lease in 2024, KBC aims for total revenue and consolidated after-tax profit in 2024 to reach VND 9.000 billion and VND 4.000 billion, respectively, an increase of nearly 48% and 80% compared to the results in 2023. In particular, the Trang Due 3 Industrial Park project, approved by the 1/2000 scale zoning plan, is expected to complete legal procedures and start construction in the first quarter of this year. 2024, will play an important role in creating long-term growth momentum for KBC.
In addition to the implemented projects, the company said it is preparing a new industrial park land fund to meet the needs of investors in the near future. Specifically, the company is completing the necessary legal procedures to get project approval in localities such as Bac Ninh, Thai Nguyen, Hau Giang, Can Tho, Vung Tau... with a total estimated area of about 3.500 hectares of land. Industrial park and 650 hectares of urban land.
Industrial Investment and Development Corporation - JSC (Code: BCM) plans to lease a large area in Cay Truong Industrial Park with an area of 700 hectares from the first quarter of 2024, increasing revenue in the industrial park leasing segment. Karma.
In 2024, in the flow of economic recovery, investment and business activities of large industrial real estate enterprises will become important driving forces, playing a leading role in the real estate industry's positive growth. more extreme in the near future.
In the context of global economic cooperation being promoted, new free trade agreements being signed, new opportunities have opened up for industrial real estate businesses, creating conditions for businesses to expand. scale of operations, creating greater value for the community and investors.
Dao Vu (Th)
