JLL: Vietnam's industrial real estate market still has great potential for development
This is the opinion of Mr. Tom Over, Director of Transportation and Industrial JLL Vietnam Asia - Pacific, at the Vietnam Industrial Real Estate Forum 2024 organized by Dau Tu Newspaper, taking place in Ho Chi Minh City.
Sharing general figures on the Vietnamese industrial real estate market, Mr. Tom Over said that in 2023, when GDP growth was low and exports decreased by 13%, power outages still occurred... affecting some industrial parks. However, at present, Vietnam's GDP has grown again, with exports increasing by 15% in the first 6 months of 2024.
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| Mr. Tom Over, Director of Transportation and Industrial, JLL Vietnam Asia Pacific. (Photo: Le Toan) |
In terms of foreign investment, Vietnam is one of the outstanding countries in the region. In the South, land prices are slightly higher, with a growth of 5% in 2023.
Specifically, in the North, the price is around 130 USD, up 6%. Of which, the lowest price is 85 USD, the highest is 175 USD. The occupancy rate is about 78.3%. Meanwhile, in the South, the rental price fluctuates around 160 USD, up 5%. The lowest price is 100 USD, the highest is about 186 USD. The occupancy rate is approximately 87.1%.
However, there are still some concerns from FDI enterprises. JLL experts said that Vietnam, Thailand, Malaysia are the 3 countries chosen by many investors, of which Vietnam is the country that brings the most opportunities. However, some investors choose Thailand and Malaysia because here they have clarity about incentives for investors. Besides, there are licenses and labor resources.
According to JLL research, some developers in Vietnam focus entirely on factories, some focus on warehouses. Some warehouse supply is shifting to factories... There is a shift according to market demand.
Supply and occupancy rate, occupancy rate increased by more than 90% in stable areas compared to general areas. Supply under construction, market overview, optimal and stable warehouse ratio are also increasing a lot. It can be seen that the micro market is growing strongly.
“For warehouses, the occupancy rate is also close to 100%, despite difficulties in domestic consumption over the past 18 months. With FDI inflows, there have also been better results in all regions,” said Mr. Tom Over.
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| Overview of Vietnam Industrial Real Estate Forum 2024. (Photo: Le Toan) |
Regarding green projects, industrial parks account for the largest proportion. At the same time, it can be seen that developers are looking for other regeneration, green certification programs are still quite limited. This is an opportunity for further development.
In 2023, 71% of LEED-certified projects will be industrial and logistics; 21% will be offices; 7% will be hospitals; and the remainder will be education, residential, and retail.
The project is EDGE certified, of which 38% is industrial and logistics; 16% is residential; 13% is office, 9% is education; 9% is hospital; 6% is retail.
Regarding the number of warehouses, if in 2019 there were only about 8.1 million m2, by 2023 it would reach 14.1 million m2. This shows that the Vietnamese industrial real estate market still has a lot of potential. Moreover, the number of organizations participating in the market is also increasing.
“I believe in Vietnam’s development compared to last year. We have many opportunities to develop. The figures here show that the Vietnamese market is developing a lot, especially with a lot of money flowing in. My general message is that the journey is still very long and we are just at the beginning of the journey,” Mr. Tom Over emphasized.
Source: https://baodautu.vn/batdongsan/jll-thi-truong-bat-dong-san-cong-nghiep-tai-viet-nam-con-nhieu-tiem-nang-phat-trien-d221128.html
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