DNVN - Mr. Neil MacGregor - Managing Director of Savills Vietnam commented that although domestic spending has slowed down, the retail real estate rental market is still performing well due to limited supply. This is also a challenge for retailers who are looking to expand their scale.
Vietnam's economic growth is attributed to three key factors: rapid industrialization thanks to foreign direct investment (FDI), the rise of the middle class, and special geopolitical strengths.
Mr. Michael Kokalari - Chief Economist of VinaCapital Vietnam said that Vietnam has been very successful in building good relationships with both the US and China. In the region, only Vietnam and Singapore can balance the position between the two powers. This is the premise for strategic opportunities for industrialization and economic growth.
In terms of the real estate industry, Mr. Neil MacGregor - Managing Director of Savills Vietnam commented that infrastructure is also an important factor in the context of Vietnam focusing on providing infrastructure.
“We have seen a number of new residential projects launched, mainly in non-central areas where economic growth is driven by manufacturing. FDI is an essential factor for the real estate market across all sectors, especially industrial,” added Neil MacGregor.
Savills data shows that Vietnam currently has 33,000 hectares of industrial parks for lease, with an 80% occupancy rate and high demand, especially in the southern region. The emerging development trend is ready-built warehouses and factories, attracting significant interest from investors.
The occupancy rate of this type of real estate is quite high, reaching 80% nationwide. The average rental price also reaches 5.4 USD/m2/month and is mainly concentrated in the Southern market. However, in the North, especially the provinces surrounding Hanoi such as Bac Giang and Hai Duong, it is also showing a fast grasping speed.
In addition, the Managing Director of Savills Vietnam also commented that the retail market is driven by favorable demographics, including a rapidly growing middle class. Several large-scale commercial center projects in suburban areas have opened and attracted a large number of consumers.
“Although domestic spending will slow down in 2024, the retail real estate market for rent will still perform well overall due to limited supply of premises. This is also a challenge for retailers who are looking to expand at this time, pushing up rents in central areas in the coming time,” commented Mr. Neil MacGregor.
The office market has seen strong demand, driven by a stable economy and expanding companies. Savills experts say rents will remain stable in the future due to new supply and a focus on sustainability.
In addition, a recently published study by Savills Impacts also confirmed that Ho Chi Minh City and Hanoi are among the fastest growing cities in the world thanks to factors such as demographics, urbanization, economic growth and a growing middle class. Remittances to Ho Chi Minh City alone have reached a 10-year record high, with an estimated 20% invested in real estate, continuing to support the recovery of the housing market.
Ha Anh
Source: https://doanhnghiepvn.vn/kinh-te/bat-dong-san/gia-bat-dong-san-cho-thue-tang-thach-thuc-cac-nha-ban-le/20240911093015462
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