After a period of cautious "defense," is the real estate market about to undergo a transformation?
After a period of cautious "defense," the real estate market is gradually shifting to an "offensive" phase with many noteworthy positive signs…
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| The NovaWorld Phan Thiet project will hand over 1,200 units in the next 5 months. (Photo: Gia Huy) |
Improvement thanks to policy.
The real estate market in 2024 has reached its halfway point with many developments. The government has made many efforts and shown determination in managing the market through the issuance of numerous policies, decrees, and resolutions... aimed at perfecting the legal framework, removing difficulties for the market, and promoting the development of social housing.
Furthermore, the market is showing strong signs of recovery, with active participation from developers, brokers, and customers. Specifically, developers are accelerating the launch of new projects, diversifying in segments and locations to meet the growing market demand. Brokers are strengthening alliances and partnerships to boost sales and offer the best products to customers. Customers are also gradually returning to the market with a more positive mindset, seeking investment and housing opportunities.
As someone who regularly monitors and researches the market, Dr. Pham Anh Khoi, Director of the Financial and Real Estate Research Institute of Dat Xanh Services (FERI), predicts that in the last six months of 2024, the market will see positive changes with a significant improvement in new supply compared to the first half of the year. However, the growth rate and absorption rate will depend on many factors, creating different scenarios.
According to John Campbell, Deputy Director of Industrial Services at Savills Ho Chi Minh City, industrial real estate maintains a good occupancy rate, with rental prices continuously increasing recently. Savills' report indicates that industrial parks nationwide have occupancy rates above 80%, with key provinces in the North reaching 83% and those in the South reaching 91% .
“Although there are still many challenges, opportunities remain wide open for those who are well-prepared and ready to seize the moment. It can be said that the Vietnamese real estate market is experiencing a ‘transitional period’ marking the beginning of a new, more stable and sustainable development cycle,” said Dr. Pham Anh Khoi.
Some other experts also believe it is too early to conclude that the market has recovered, as recovery takes time and a roadmap; it cannot be rushed. However, with the gradually positive developments, it is entirely possible to believe that the real estate market has passed the bottom of the U-shaped curve and is showing signs of slight growth from 2024, heading towards...
Developments are expected to improve from 2025 onwards, with a recovery in 2026.
“From now until the end of 2024, the real estate market is still in a state of exploration, with buyers prioritizing certain factors such as meeting actual living needs, clear legal status, good financial support policies, stable rental yields, and optimized costs,” said Mr. Nguyen Quoc Anh, Deputy General Director of PropertyGuru Vietnam.
Industrial real estate remains a bright spot.
Besides general assessments of the overall market, experts believe that each segment is experiencing its own specific trends. However, the industrial real estate segment will be a "bright spot" as domestic and foreign businesses continue to show interest in the Vietnamese market. For example, Taseco Land (TAL) aims to develop five new industrial parks with a scale of over 1,000 hectares in the next five years.
In addition, foreign investors account for up to 75% of the ready-built warehouse market share in Vietnam… The “race” to develop industrial real estate in the country is also heating up as more and more businesses with strong capital in urban and housing construction are shifting their focus to industrial real estate.
The Construction Investment Corporation (DIC Corp) is considering four industrial park development sites with a total area of approximately 2,000 hectares. Recently, DIC Holdings (a member of DIC Corp) partnered with Van Thuong Industrial Park Infrastructure Development Company Limited to secure priority as the general contractor for the infrastructure construction of a 400-hectare project in Phu My town, Ba Ria - Vung Tau province.
“My biggest mistake was focusing solely on urban development, neglecting industrial zones, and losing a huge amount of revenue. Now is the time to invest in eco-industrial parks; otherwise, we will fall behind,” shared Mr. Nguyen Thien Tuan, Chairman of the Board of Directors of DIC Corp.
Similarly, Ha Do Group also has ambitions to expand into the industrial real estate sector, starting in Ninh Thuan province. Earlier this year, the company proposed investing in two 100-hectare industrial clusters near Ca Na Industrial Park, focusing on high-tech and processing/manufacturing industries. Ha Do Group's leaders have previously stated that industrial real estate will be a key development area for the Group in the 2025-2030 period.
In addition to its strengths in residential development, Khang Dien Investment and Business Corporation is also heating up the "race" in industrial real estate with the Le Minh Xuan Industrial Park Project in Ho Chi Minh City. A company representative stated that they are finalizing compensation and land clearance to ensure the project is ready for operation starting next year.
Based on these developments, Mr. Luu Quang Tien, Deputy Director of FERI, predicts that the industrial real estate market will continue to grow in the coming period, especially when free trade agreements (FTAs) come into effect and Vietnam increasingly attracts foreign investment into the manufacturing sector.
"Industrial real estate will continue to be a bright spot in the sector as the macroeconomic environment improves, with both leasing demand and new supply growing as foreign investment in the manufacturing sector continues to increase. Supply is projected to grow slightly in the short term and significantly in the long term as more new industrial land areas are planned," FERI experts commented.
Source: https://baodautu.vn/batdongsan/sau-giai-doan-phong-thu-than-trong-thi-truong-bat-dong-san-sap-chuyen-minh-d219953.html
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