Industrial real estate, ready-built factories attract investors

Nov 08, 2021

The segment of industrial real estate, ready-built factories (RBF) is still the top choice for investors due to the increasing demand for high-quality warehouses and factories.

Experts of Savills Company said that the segment of industrial real estate, ready-built factories (RBF) is still the first choice for investors due to the increasing demand for high-quality factories and warehouses. get a raise.

High rents and a shortage of industrial land in prime locations also contribute to increasing demand for ready-built factories.

According to analysis by Savills experts, in the third quarter, Vietnam's economy suffered a lot of negative impacts from the fourth wave of the epidemic.

Data from the General Statistics Office also shows that the Gross Domestic Product (GDP) in all three quarters of 2021 only increased by 1.42% over the same period last year due to prolonged social distancing measures applied across the country. nationwide to prevent the epidemic. This also leads to supply chain disruptions and plant shutdowns.

However, data from the Ministry of Planning and Investment still shows that FDI in these three quarters still increased by 4.4% to approximately $22.15 billion over the same period in 2020.

In the market, a number of outstanding mergers and acquisitions have emerged such as: Aseana Properties Ltd. sold a stake in City International Hospital to a joint venture partner for a total value of approximately $95 million.

Ascott Corporation Ltd. (Capitaland) acquired a complex of 364 apartments in Somerset Metropolitan West Hanoi for about $93 million. Nishi Nippon Railroad has acquired the capital contribution of Nam Long Investment Joint Stock Company in Paragon Dai Phuoc One Member Limited Liability Company. Nishi Nippon Railroad has cooperated with Nam Long Group in developing Nam Long Dai Phuoc urban area with a scale of 45 ha...

The segment of industrial real estate, ready-built factories is still a bright spot. Bac Giang and Hung Yen provinces have approved industrial parks with the scale of 800 ha and 193 ha respectively in these two localities. The Ministry of Natural Resources and Environment also said that by 2030, the area of ‚Äč‚Äčindustrial land will increase by 115,000 hectares compared to 2020.

Several new public infrastructure projects are in the implementation phase and some existing projects are entering the completion stage. Typically, recently, the Prime Minister approved the investment plan for phase 1 of the Bien Hoa-Vung Tau expressway with a total investment of about $822.89 million, built under the partnership model. public private.

Along with that, Thu Thiem 2 Bridge has carried out the final steel beam installation and is expected to be completed in the second quarter of 2022, connecting District 1, Thu Thiem new urban area and Thu Duc city. The Hanoi Department of Planning and Investment also announced that Hanoi plans to invest more than 3.65 billion USD in the transport sector to implement 255 projects.

Commenting on the potential of real estate investment in Vietnam in the near future, Mr. Neil MacGregor, General Director of Savills Vietnam affirmed, basically, Vietnam is still an attractive destination for real estate investors. international product.

The growing middle and upper class will continue to drive demand for housing across Vietnam. The process of urbanization and the gradual decrease in the number of traditional multi-generational households also promote an increase in demand for housing.

Meanwhile, housing supply has been constrained in recent years, leading to price increases and keeping prices stable throughout the pandemic. Therefore, when a new normal is established, the Government and real estate developers will have to act quickly to free up supply to avoid price escalation.

In addition, investment in infrastructure is also a very important factor to open up new markets to satisfy the ever-available real estate investment needs of the growing middle class. in Vietnam, analyzed by Mr. Neil MacGregor.

As for the office segment, Mr. Neil assessed, in Ho Chi Minh City, office supply is still significantly limited, the occupancy rate as well as rental prices are always high.

This segment remains one of the main concerns of foreign investors. However, opportunities are still quite scarce.

This may affect the increase in profitability; in which, investment yield on luxury office projects is falling below 6%.

The resort and hotel segment has been hardest hit by the pandemic, but it is also a place where smart investors are likely to find rare opportunities to enter the real estate market in Vietnam.

Although the recovery process can take several years, this is a good time to shop for quality products that would normally never hit the market. Opportunities appear in both key cities, as well as resort destinations, added Mr. Neil MacGregor.

Source: NDH