Vietnam real estate segment: strong growth

20/07/2018   Viewed: 98
Along with the positive growth of GDP in the first two quarters of this year, the investment in the real estate sector in the North and South East also showed strong growth with supply and high occupancy rates.
 
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The first priority to build the factory of investors, especially foreign investors are industrial parks which have been invested synchronously technical infrastructure. Illustration

The industrial zone (IP) is considered one of the largest and most vibrant areas in the country, in the North. According to a study by Jones Lang LaSalle (JLL) Vietnam, the total area of ​​industrial land in the northern key economic region reached 11,366ha, nearly half of the South East region's supply and increased to 1,100ha same period in 2017.

Hai Phong and Bac Ninh now account for 46% of total supply and are also the two most industrialized areas in the North. Geographic advantages of Bac Ninh and Hai Phong's seaport system help to increase supply. More importantly, these are also the two destinations attracting investment capital in the largest industry in the northern key economic region, with about 18,116 hectares of industrial land expected to be put into use in the region from now on. by the end of 2020.

According to reports from JLL Vietnam, the supply of southern industrial zones in the end of June, 2018 increased significantly compared to the fourth quarter of 2017, with a total land area of ​​37,030ha. Most of the new supply came from the provinces of Ba Ria - Vung Tau, Tay Ninh and Binh Phuoc. These are less established areas in the area.

Of which, as of the end of June, 1818, Ho Chi Minh City reached a total area of ​​4,206ha with occupancy rates of 77%, Dong Nai 9,813ha and occupancy rate of 85%. Binh Duong is the largest industrial park with 10,931 ha, occupancy rate 88%; Binh Phuoc 1,305ha, occupancy rate 85%.

According to JLL, Binh Duong and Dong Nai are still the leading markets, accounting for nearly 56% of total supply, thanks to the accessibility of transportation infrastructure. Average occupancy rate reached 77% in the second quarter of 2018, up 2% compared to the fourth quarter of 2017 and mainly recorded in Binh Duong and Dong Nai.

As of Q2 / 2018, rents in the southern key economic zone reached an average of US $ 72 / sqm / cycle, an increase of 4.7% compared to Q4 / 2017.

In particular, the price of land in Ho Chi Minh City increased $ 7 compared with the fourth quarter of 2017, continues to lead the southern area thanks to favorable location, nearly double the regional average. Meanwhile, rental prices in other cities tend to increase, with rents increase from 3-5 cycles.

Assessing the prospects of the industrial property market in the coming time, JLL experts said that more than 11,940ha of industrial land supply is expected to enter the southern market in the next three years, of which stages The expansion of existing projects contributes a large proportion.

Parallel to that, demand is also expected to continue to rise with industrial products. Occupancy and occupancy rates are expected to be higher due to strong demand and strong economic prospects. In addition, demand for high quality workshops as well as related services, along with industrial land development will increase sharply ...

In fact, not all IPs receive a lot of attention from manufacturers. Economic experts said that the top choice for building factories of investors, especially foreign investors are the industrial parks have been invested in infrastructure, electricity and water.

"Besides the general preferences of the State for each IP, foreign investors are interested in the network of suppliers of raw materials and auxiliary materials available for the operation of the plant in the IP. At the same time, they are also interested in both the procedures for licensing investment in the industrial zone is open, the license time to meet the progress of the project or not. If the investor of the IZ project does not have a good plan, do not have a synchronous connection, do not have enough legal procedures, the benefit from other incentives will not make sense to investors. foreigners, "said Bui Nguyen Huyen Trang - JLL expert said...

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