Real estate segments grow positively, expected to “revive” by the end of 2024
Currently, real estate segments from commercial housing to industrial real estate are showing signs of positive growth. Many new projects are being implemented, with expectations that the market will “revive” by the end of 2024.
The report shows that the Vietnamese real estate market in the third quarter of 2024 has shown a positive recovery after the difficult period. Thanks to the stability of the economy and supportive policies from the Government.
The segments: housing, commercial, industrial real estate are currently showing signs of growth with many new projects being implemented.
Mr. Le Dinh Chung – member of VARS Market Research Working Group, General Director of SGO Homes commented. Although the Vietnamese real estate market is gradually recovering from a difficult period, each segment still faces its own challenges. According to Mr. Chung, the current market is led by the apartment segment. With prices constantly increasing on both primary and secondary markets.
The market has also shown signs of “heating up”. Through land speculation, pushing up housing prices and non-transparent real estate transactions.
“Heat” of the industrial real estate segment
The industrial real estate segment continues to maintain its “heat” with a sharp increase in the number of new projects, along with increasingly abundant FDI capital.
The occupancy rate of industrial parks already in operation remains at a stable increase (about 75%). The key provinces in the North and South are 82% and 92% respectively.
However, the occupancy rate at established industrial parks is still difficult to increase rapidly due to the waiting between supply and demand. Investors only deploy infrastructure when they have tenants, while businesses only want to invest in projects that already have infrastructure.
The big challenge of this segment
The big challenge of this segment also comes from the requirement to “green” industrial parks. Aiming to achieve the high standards of investors, as well as the sustainable development orientation of the country.
The office and retail commercial real estate segment also shows long-term development potential. Due to the growing demand for scale and quality.
New shopping malls, integrating many services, continue to attract customers. Meanwhile, old office buildings and shopping malls that have not been renovated or upgraded are recording increasingly high vacancy rates. While old office buildings and shopping malls are not renovated or upgraded. According to records, the vacancy rate is increasing. Especially small townhouses in prime locations.
Based on the results recorded from the third quarter of 2024, Ms. Pham Thi Mien – Deputy Head of Market Research and Investment Promotion and Consulting Department of VARS forecasts. If factors related to legal, financial and public investment policies continue to improve, the market is likely to “heat up” in the late 2024 period.
Housing supply is expected to continue to be boosted, creating momentum to lead the market, through M&A activities.
“It is forecasted that by the end of 2024, the segments will continue to recover. Luxury apartments will continue to lead the market, villas and townhouses will become more vibrant. Clean legal land attracts investors and social housing will have more opportunities thanks to new regulations. Industrial real estate will continue to grow. And resort real estate will have the opportunity to improve thanks to condotels being granted certificates”, Ms. Mien predicted.
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