MEDIUM INDUSTRIAL REAL ESTATE
The Covid-19 pandemic has affected the world. During the 4th epidemic in Vietnam, it had a significant impact on the socio-economic situation when GDP growth was negative (6.17%). To fight the epidemic, the Government has decided to social distance. Causing many production and business activities to be delayed. At the same time, the current medium-sized…
The Covid-19 pandemic has affected the world. During the 4th epidemic in Vietnam, it had a significant impact on the socio-economic situation when GDP growth was negative (6.17%). To fight the epidemic, the Government has decided to social distance. Causing many production and business activities to be delayed. At the same time, the current medium-sized industrial real estate market is no exception.
Mixed developments in the real estate sector
Northern activities develop
The mid-sized industrial real estate market in the North is still developing positively. According to the overview report on the land market for industrial zones and factories. Ready-built in the third quarter of 2021 has shown that the rate of development of industrial zones in the 5 key industrial provinces of the North temporarily decreased slightly to 72%. But at the same time get a new supply.
In the provinces such as Thai Binh, Phu Tho, Vinh Phuc exciting with many big projects. The construction factory market is stable, with a rate of 89%. In particular, Hung Yen province has made great efforts and continues to receive new supplies from the expanded Pho Noi A industrial park with a total area of 93ha.
The fact that medium-sized industrial parks receive FDI capital and pour into the region. Mainly in Hai Phong and Bac Ninh, helping the average industrial land price in the whole region increase by 6.1% over the same period last year.
Southern activity stagnated
The Covid-19 pandemic broke out strongly in the South, causing the South to suffer extremely large impacts. All activities halted making it difficult to attract investment. Industrial parks and factories in operation must also reduce output or stop production to serve the anti-epidemic work as directed by the Government.
- According to JLL Vietnam, occupancy rates of industrial parks and ready-built factories remain at 85% and 87%, respectively. The real estate market is forecasted to be active again. When the epidemic situation is under control, Ho Chi Minh City brings the neighboring provinces back to a new normal state.
- Industrial land in the South has no new supply. Supply remains at 25,220ha.
- The ready-built factory market received a single new supply that was launched. From the construction project from the first quarter of 2021. The total supply is about 3.3 million m2.
- Although, many manufacturing sectors and investors have not been able to launch activities yet. As well as business expansion. But land prices continued to increase (reaching 114 USD/m2/lease term).
- The rental price of ready-built factories remains stable. To support small and medium-sized businesses, during difficult epidemic outbreaks.
Industrial real estate model to boost the economy
A new real estate model appeared, promoting economic development. The market is witnessing complex pattern development in new markets. A typical example is the research and investment project of an industrial park complex in Yen Bai, with a total area of about 496 hectares.
In the South, the market also recorded several manufacturing enterprises. Had to move orders out of Vietnam to cope with the epidemic situation. However, the movie is only temporary and no FDI enterprises have left Vietnam yet.
New point of medium-sized industry
Despite this long social distance, has raised concerns in the foreign business community. But Vietnam is still considered an attractive destination. Thanks to its inherent advantages in human resources, trade agreements, etc. If the pandemic is soon controlled, our country will continue to benefit from changes in the global supply chain.
What is most needed is that the southern provinces soon overcome the pandemic. Open the door back in the normal state, in a synchronous way. To restore business activities and develop Vietnam’s economy and society. Regain trust with foreign investors and businesses. Increasingly affirming his talent and position.
DVH Group – The leading real estate unit in the market
With many years of experience in the general field. With a team of experienced-skilled architects and engineers. DVH Group designs high-class works such as interior design of luxury villas, high-class townhouse furniture, modern office furniture… The products are superior in quality, meeting the right needs as well as customer expectations. Coming to DVH Group, customers can completely trust the aesthetics, construction progress, and professionalism in the working process.
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