Bright spots in industrial real estate and prospects

Industrial real estate is still a bright spot

According to Mekong Asean , Ms. Duong Thuy Dung - CEO of CBRE Vietnam, industrial park (IP) real estate is still a bright spot in the coming time, when Vietnam benefits greatly from the shift in global supply chains.

According to Ms. Dung, the current occupancy rate of industrial land for lease is almost 100%. In tier 1 markets such as Binh Duong, Dong Nai, Long An, Hai Duong, Bac Ninh, Hung Yen..., there is almost no land left for lease. Instead, tier 2 markets such as Ba Ria Vung Tau, Tay Ninh, Thai Binh, Thai Nguyen... are gradually becoming attractive destinations with large land funds and low prices.

CBRE expects industrial park real estate rental prices to continue to increase in the coming years, at a rate of about 5-9% per year in the North and 3-7% in the South.

In addition, Ms. Dung believes that the factory rental product will develop strongly with the improvement of the logistics sector. With high demand, helping foreign investors reduce the time to find land and worry about permits, this is an attractive product, with an occupancy rate of up to 80%. The rental price is also increasing continuously.

Industrial park (IP) real estate is still a bright spot in the coming time, when Vietnam benefits greatly from the shift in global supply chains. Illustration photo from the internet

"New door" for investment funds

According to Vietnam Financial Times, according to experts, with advantages from macro factors and attractiveness in most segments, Vietnam is becoming a promising investment destination for cash flow and investors, especially bringing more opportunities for industrial real estate - a segment that directly benefits from new investment waves.

The strong investment wave is said to come from Vietnam upgrading its partnership with a series of major economies such as the US, Japan, South Korea, China and recently Australia... When capital flows strongly into the economy, industrial parks are seen as "magnets" that strongly attract cash flow.

The outlook report of the industrial real estate business group of MBS Securities Company predicts that the outlook of the industrial real estate group in the coming time will continue to come from stable macroeconomic conditions, along with maintaining good FDI attraction of Vietnam thanks to improving relations with major powers.

MBS also believes that by 2024, traditional industrial parks will gradually lose their competitive advantage. Instead, green and sustainable industrial parks are increasingly attracting investors, focusing on high-tech projects using clean materials and reducing carbon emissions into the environment, which is the current trend. In addition, investment capital tends to shift to the secondary market thanks to large supply and low rental prices.

Mr. Thomas Rooney - Senior Manager of Savills Hanoi Industrial Consulting Department, assessed that Group 2 industrial park markets are showing great potential to attract foreign investment. For example, in the Northern key economic region, Bac Ninh is a prominent locality in attracting FDI. According to the Bac Ninh Statistics Office, in 2023, new FDI capital attracted to industrial parks in the province will reach 1.104 billion USD (exceeding 163.7% compared to 2022). Bac Ninh not only attracts manufacturing and logistics enterprises, but also domestic and foreign leasing investors.

In addition, Vinh Phuc is also a notable market. Currently, there are many investment activities taking place quietly here and there will be more information about foreign investors starting projects this year.

According to Mr. Thomas Rooney, the land use rate in localities south of Hanoi such as Hung Yen, Ha Nam... is showing positive signs. Competitive land prices open a "new door" for investment funds, helping them take advantage of attractive profit opportunities early. In addition, abundant labor resources, proximity to major consumer markets, convenient access to seaports along with complete transport infrastructure are also factors that strengthen the attractiveness of this area.

In the coming time, Nam Dinh or Thai Binh are the next group 2 markets that are expected to have outstanding development in industrial real estate. These localities are known for their strength in textiles, but recently witnessed new capital flows into higher value industrial sectors.

Dao Vu (T/h)

Source: https://www.nguoiduatin.vn/diem-sang-bat-dong-san-cong-nghiep-va-nhung-trien-vong-a656278.html