After a period of cautious defense, is the real estate market about to change?

After a period of cautious "defense", is the real estate market about to change?

After a cautious "defensive" phase, the real estate market is gradually moving into an "offensive" phase with many notable bright spots...

NovaWorld Phan Thiet project will hand over 1,200 products in the next 5 months Photo: Gia Huy

Prosperity thanks to policy

The real estate market in 2024 has passed the halfway point with many movements. The Government has made many efforts and determination in managing the market through issuing many policies, decrees, resolutions... to perfect the legal framework, remove difficulties for the market, and promote the development of social housing.

In addition, the market has strong signs of recovery, with the active participation of investors, brokers and customers. Specifically, investors have accelerated the announcement of new projects, diversified in segments and locations, meeting the increasing demands of the market. Brokers have strengthened alliances and links to boost sales activities, bringing the best products to customers. Customers have also gradually returned to the market with a more positive mentality, looking for investment and settlement opportunities.

As a person who regularly monitors and researches the market, Dr. Pham Anh Khoi, Director of the Finance - Real Estate Research Institute of Dat Xanh Services (FERI), predicts that in the last 6 months of 2024, the market will have positive changes with new supply significantly improved compared to the first half of the year. However, the growth rate and absorption rate will depend on many factors, creating different scenarios.

Mr. John Campbell, Deputy Director of Industrial Services, Savills Ho Chi Minh City, said that industrial real estate has maintained a good occupancy rate, and rental prices have continuously increased in recent times. Savills' report shows that industrial parks nationwide have an occupancy rate of over 80%, with key northern provinces reaching 83% and the southern provinces reaching 91% .

“Although there are many challenges, opportunities are still open for those who have prepared carefully and are ready to seize the opportunity. It can be said that the Vietnamese real estate market is having a 'seasonal transition' opening a new development cycle, more stable and sustainable,” said Dr. Pham Anh Khoi.

Some other experts also said that it is still too early to conclude that the market has recovered, because recovery takes time and a roadmap, and it cannot be rushed any faster or sooner. However, with the gradually positive developments, it is entirely possible to believe that real estate has passed the U-shaped bottom and is showing signs of slight growth from 2024, towards

develop more positively from 2025 and recover in 2026.

“From now until the end of 2024, the real estate market is still exploring, buyers prioritize certain factors such as serving real housing needs, clear legal status, good financial support policies, stable rental yields and optimizing all types of costs,” said Mr. Nguyen Quoc Anh, Deputy General Director of PropertyGuru Vietnam.

Industrial real estate is still a bright spot

In addition to general comments on the overall market, experts say that each segment has certain movements. However, the industrial real estate segment will be a "bright spot" when domestic and foreign enterprises continue to pay attention to the Vietnamese market. Typically, Taseco Land (TAL) aims to develop 5 new industrial parks with a scale of more than 1,000 hectares in the next 5 years.

In addition, foreign investors account for 75% of the market share of ready-built warehouses in Vietnam... The "race" for domestic industrial real estate is also "hot" as more and more businesses with strong capital in urban and housing construction have pivoted to industrial real estate.

Construction Investment Corporation (DIC Corp) is eyeing 4 industrial park development plots with a scale of around 2,000 hectares. Recently, DIC Holdings (a member of DIC Corp) has cooperated with Van Thuong Industrial Park Infrastructure Development Company Limited to be given priority as the general contractor for the infrastructure construction of a 400-hectare project in Phu My town, Ba Ria - Vung Tau province.

“My big mistake was to only develop urban areas, not paying attention to industrial zones and losing a huge amount of revenue. Now is the time to invest in ecological industrial zones, otherwise we will be left behind,” said Mr. Nguyen Thien Tuan, Chairman of the Board of Directors of DIC Corp.

Similarly, Ha Do Group also has ambitions to enter the industrial park 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, processing and manufacturing technology. Ha Do Group leaders once stated that industrial real estate will be the Group's key development sector in the 2025-2030 period.

In addition to its strength in housing development, Khang Dien Housing Investment and Trading Joint Stock Company is also heating up the "race" for industrial real estate with the Le Minh Xuan Industrial Park Project in Ho Chi Minh City. The company representative said that they are completing compensation and site clearance so that the project is eligible to be put into operation from next year.

From the above movements, Mr. Luu Quang Tien, Deputy Director of FERI, predicted that the industrial real estate market will continue to grow in the coming time, especially when free trade agreements (FTAs) come into effect and Vietnam increasingly attracts foreign investment in the manufacturing sector.

“Industrial real estate will continue to be a bright spot in the industry when the macro economy improves, rental demand and new supply both grow as foreign investment flows into the manufacturing sector continue to grow. Supply is forecast to grow slightly in the short term and increase significantly in the long term when many 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