The luxury apartment segment will continue to 'heat up'

Tạp chí Doanh NghiệpTạp chí Doanh Nghiệp14/10/2024


DNVN - According to the Vietnam Real Estate Market Report for the third quarter of 2024 by the Vietnam Association of Realtors (VARS), if factors such as legal policies, finance and public investment continue to improve, the market is likely to continue to "heat up" in the final period of the year.

According to the Vietnam Real Estate Market Report for the third quarter of 2024 by VARS, the real estate market is gradually recovering after a difficult period. However, each segment still faces its own challenges.

The industrial real estate segment continues to maintain its "heat" with a strong growth in the number of newly implemented projects, along with an increasingly "abundant" source of FDI capital. The occupancy rate of industrial parks (IPs) that have come into operation has maintained a stable increase, reaching about 75%. Of which, the key northern provinces reached 82% and the key southern provinces reached 92%.

However, the occupancy rate of established industrial parks is still difficult to increase due to the supply and demand "waiting" for each other. Industrial park investors "close" new customers to invest in infrastructure while investors only decide to invest in projects with existing infrastructure. The challenge of this segment also comes from the requirement to "green" industrial parks, meet the increasing demands of investors and the country's sustainable development orientation.

The “green” real estate trend is expected to lead the market in the new cycle.

The commercial real estate segment of offices and retail continues to grow with great potential in the long term from the increasing demand in both scale and quality. Modern, high-end offices with “green” certification and meeting sustainable development standards continue to attract tenants, especially foreign enterprises.

New shopping malls with integrated activities also continue to be popular. Meanwhile, old office buildings, old shopping malls that are not actively renovated or upgraded, and small townhouses on prime streets are recorded by VARS to have increasingly high vacancy rates.

For the tourism and resort market, in the third quarter of 2024, the market recorded about 945 new products, a sharp decrease of only 35% compared to the previous quarter and equivalent to the same period in 2023. This decrease was mainly due to the new supply in the previous quarter arising locally from a large project.

In the first 9 months of 2024, the entire tourism and resort market recorded 4,059 new products for sale, an increase of 80% over the same period in 2023 but only reaching 25% over the same period in 2022.

Based on the results recorded in the third quarter, VARS forecasts that if factors such as legal policies, finance and public investment continue to improve, the market will likely continue to "heat up" in the final period of the year.

At that time, the new legal corridor will officially come into effect, investors will continue to promote project implementation. In particular, the housing supply will continue to be promoted, creating a driving force for the market through mergers and acquisitions (M&A).

The State will continue to strengthen market supervision and regulation, ensuring stability and proper development. At the same time, the emerging trend of “green” real estate is expected to lead the market in the new cycle.

“The high-end apartment segment continues to lead the market. Villas and townhouses are becoming more vibrant, land with clean legal status attracts investors; social housing will have more opportunities thanks to new regulations. Industrial real estate will grow, resort real estate will have the opportunity to improve thanks to condotels being granted certificates,” the report forecasts.

In the context of the increasingly improved legal corridor, VARS recommends that investors, trading floors and real estate brokers need to proactively update and promptly grasp new changes. At the same time, businesses need to adjust their business strategies to suit the legal corridor and market development trends.

Ha Anh



Source: https://doanhnghiepvn.vn/kinh-te/bat-dong-san/phan-khuc-can-ho-cao-cap-se-con-tang-nhiet/20241014085158570

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