Industrial real estate stocks have many prospects in 2024

According to data reported by research companies on the industrial real estate market, over the past year, both the Northern and Southern markets have recorded positive absorption, with the occupancy rate of ready-built factories remaining stable at 86% in the North and increasing slightly to 85% in the South, despite a sharp increase in supply... Notably, the absorption area in the Southern region in the second half of 2023 is 3.8 times higher than in the first half of the year thanks to positive adjustments in investor policies.

This signal shows that industrial real estate is being fueled amid the difficult trend of real estate in general, achieved when Vietnam is increasingly attracting the world's attention.

In 2024, industrial real estate is still considered a good growth segment. This segment continues to be a new production and business fulcrum for technology enterprises, especially in the high-tech sector.

In addition, FDI capital flows remain positive with the advantage of preferential tax policies. Transport infrastructure is increasingly synchronized and modernized with a commitment to invest in infrastructure that is among the top in the region. Industrial park support services are increasingly improved.

And that is creating a big advantage for the industrial real estate stock group. Evaluating the industrial real estate stock group in 2023, analysts at VPS Securities Joint Stock Company (VPS) see it as one of the industries with positive performance in 2023, in contrast to many other industries that have recorded quite poor business results. Smart money tends to flow into stocks of businesses with high business efficiency, mainly due to increased profits from industrial park leasing as well as good cost management.

VPS experts said that industrial park real estate stock prices in general have been positive, increasing by about 46% from November 2022 to present, far exceeding the increase of VN-Index. In addition, foreign investors have shown special interest in industrial park real estate stocks by net buying thousands of billions of VND since the beginning of 2023. The gross profit margin of industrial park real estate enterprises in the third quarter of 2023 increased to 43.4% (the same period last year was at 36.5%).

In 2024, VPS experts assess that industrial park real estate stocks still have many positive growth prospects as experts predict that the occupancy rate of industrial parks will be high and rental prices will still increase positively.

Next, FDI capital flows continue to develop positively, with support from favorable policies and improved transport infrastructure, especially in the Southern region. Many foreign enterprises choose Vietnam as a production location, and FDI capital in industrial parks and economic zones accounts for a significant proportion.

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