This is the type of real estate that investors have won big in the past two years

The bright spot of the real estate market

The Covid-19 pandemic has caused the real estate market to suffer heavy impacts. Many segments fell into freezing and paralysis such as: Real estate retail space, resort real estate while industrial real estate is a rare bright spot of the market.

The occupancy rate of industrial real estate in some provinces in the Northern key economic region remains stable.

According to JLL, in the fourth quarter of 2021, the occupancy rate of the northern industrial zones remained at 80%, a rapid growth compared to 72% in the third quarter of 2021.

The occupancy rate of ready-built factories also increased sharply, reaching 95.6% when domestic enterprises returned to operation following the recovery of the economy. Only in November 2021 after removing the distance, the number of businesses returning to work increased by 50% compared to September when the epidemic broke out.

The fact that industrial parks quickly adapt, maintain and ensure production and business in the fourth quarter of 2021 has helped the industrial land price in the fourth quarter of 2021 to recover its growth momentum. Industrial land price reached 110 USD, up 7.1% over the same period last year.

Similarly, ready-built factories for lease also recorded a good growth momentum compared to the third quarter of 2021, reaching 4.9% over the same period last year.

According to Savills, Bac Ninh is the leading locality in supply as well as occupancy rate in the Northern industrial zone real estate market.

Besides Bac Ninh, Hanoi witnessed a slight increase in occupancy rate of 1%, reaching 91% with 13 projects. Hai Duong with an increase of 5% over the same period last year, achieved an occupancy rate of 86% with 10 projects. Vinh Phuc and Hung Yen are both higher at 88%.

Forecasting the industrial real estate market, Savills experts also assessed good development based on positive economic development prospects and the fact that Vietnam is continuing to attract foreign investment capital, plus infrastructure. Traffic is strongly invested in construction. This segment will have a rapid growth rate from the first quarter of 2022, especially in the northern region such as: Hai Phong, Hai Duong, Bac Ninh, Bac Giang, Quang Ninh, Lang Son…

Before the above forecast, the question arises as to what causes industrial real estate to develop well in the context of the epidemic in the two years 2020-2021.

Real estate near the industrial zone is attractive to investors

Answering this problem at the talkshow “Have an appointment with a real estate expert” of Batdongsan.com.vn, Mr. Huynh Phuoc Nghia – Deputy Director of the Innovation Institute, University of Economics Ho Chi Minh City shared: ” Overall, the industrial real estate market has about 380 industrial parks, somewhere about 120,000 hectares of land used for industrial parks. With that size compared to the size of Vietnam’s economy, we find it incomplete and not fully met. It is expected that in the next 10 years, more industrial parks will be needed to serve industrial development.

Second, before Covid-19, there was a shift of investment from businesses in China and some economies to looking for some suitable areas and industrial zones, with a background of input costs as well as those of other economies. as the cost of matching production.

Therefore, in the past 3 years, Vietnam has welcomed this shift. Before 2016, the occupancy rate was in the range of 55-60%, but in the past 3 years, the occupancy rate was up to 75-80%, even some provinces were completely filled.

Mr. Huynh Phuoc Nghia – Vice President of Innovation and Innovation Institute, University of Economics Ho Chi Minh City.

Third, Vietnam currently has a strategy to develop industrial parks, especially developing industrial parks according to new trends such as: Urban industry, industrial parks associated with ecology… Trends and types of zones Such general industry is being considered for investment in new areas in cities or zones with potential for industrial development. This is close to the trend of world industrial development.

Fourth, Vietnam has fundamental conditions for industrial park development, especially attracting foreign investors in terms of economic development. For example, aspects such as costs, urban connectivity, infrastructure connectivity, or adjustments to the scale of industrial park services… have positive changes that make them attractive to foreign investors and domestic.

Fifth, the restructuring of Vietnam’s key industries to attract FDI. Vietnam prioritizes and calls for investment in new types of industries, industries that are less harmful to the environment, industries that encourage the development of value chains and ecosystems.

The above points make the picture of Vietnam’s industrial park development in the past 2 years attractive. It is forecasted that in the next 5, 10 years, industrial real estate still has a lot of potential.

Sharing the same opinion, Mr. Vo Van Muoi – General Director of Kim Thinh Phat Real Estate Joint Stock Company also said: “Industrial real estate is one of the very potential types in the near future. In particular, Vietnam has a great advantage in attracting supply chains.

Besides, Mr. Muoi said: “According to the real estate cycle in the past period, the type of resort real estate, villas, land plots has developed strongly, the value has increased somewhere 3-5 times, There are even areas where the value of real estate increases up to 10 times.

The period of 2013-2019 has developed, after 2019 due to the Covid-19 impact has slowed down and in the last two years, the real estate market has had impacts but the impact is not great. Therefore, the market needs a new wave – a type of real estate that generates cash flow or real estate that creates jobs for the owner of that property.

And, industrial real estate has almost become such a wave. Where industrial real estate develops, real estate in the vicinity of industrial zones develops like that and tends to develop more. However, real estate near the industrial park is in the process of being formed, there is no methodical and clear development trend.

Mr. Muoi emphasized, in the period of 2020-2021, many investors have won big from real estate near industrial zones because industrial real estate development has led to active development of real estate near industrial zones.

According to Phong Linh