Industrial real estate is still the fertile land

VCN- Assessing the real estate market in 2021 by market segment, according to experts and firms in the survey of Vietnam Report Joint Stock Company (Vietnam Report), some segments that will continue to attract cash flow areindustrial real estate, mid-range apartments priced from 25 - 30 million/square metres serving real needs, real estate services, housing associated with industrial zones with prices from 1-3 billion and mountain resort real estate.
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Industrial real estate today is very different compared to 10-15 years ago. Photo: Internet

The resort real estate segmentis the segment most affected, but in the second half of 2021, if the vaccine is deployed on a large scale, it can be developed again.

Because resort real estate is seasonal, it only needs to be active for sixmonths to recover and compensate for the losses during the year. Therefore, ifthis segment can revive or not depends very much on its ability to control and repel Covid-19.

According to the Ministry of Construction, average hotel room occupancy rate in the fourth quarter of 2020 did not improve, for the whole of2020, it was only about 30-40% (a sharp decrease compared to 2019). The average hotel room rental price of the market also decreased significantly, only about 40% compared to 2019.

Also according to Vietnam Report, in 2020, many resorts appear in the north and 2021 is forecast to continue to be positive. Tourist attractions about an hour or two from the city have become popular as residents are restricting travel or using planes for holidays.

For the office building segment, Vietnam Report reports this segment in 2021 has two trends. One is to focus on projects that have potential to revive, projects with favorable locations and secondly with projects that lack prospects, new projects born in unfavourable locations will meet difficulties and temporarily delay.

The land plot segment is one real estate product that is not subdued by any factor; this segment is still very attractive, especially in localities with large projects and planning and areas with high levels of development. The value of land plots often increases andthe only problem is time and scale.

In addition, land spillover at large projects such as the buffer zone of Long Thanh airport, the corridor of transport infrastructure works, the border area of ​​the emerging industrial zoneswill become a trend.

According to the Vietnam Report's forecasts, the level of development of the residential real estate segment for low-income people is relatively low in 2021. This is still a segment with great demand but investors are not interested to put money in, because the profit margin is very low.

Tor this segment to grow, it is necessary to support the Government in encouraging investors and banks to invest more in this segment.

Meanwhile, the high-end real estate segment in big cities like Hanoi or HCM City is priced and many foreign investors are also investing in this segment.

With industrial park real estate, according to the Vietnam Report, in the next 2-3 years there may be good potential when some investors in China and other countries are planning to relocate factories export to Vietnam.

Affirming this is a "fertile land" everyone wants to invest in, but to be able to invest in industrial real estate at this time is not easy because it relates to planning of industrial parks and transportation infrastructure.

According to experts in the survey of Vietnam Report, there has not been a wave of foreign investors entering Vietnam. In addition, industrial real estate are also very different from the industrial real estate 10-15 years ago, for example, it has developed the trend of building ready-made warehouses, factories, then renting, or renting warehousesnot just doing infrastructure like before.

The segment of agricultural real estate, according to experts in the survey of Vietnam Report, is a segment that deserves attention but the investment here is not strong.

The benefits from this segment are still questioned by investors. Converting agricultural real estate into land that can be used as other real estate is not easy, and planning is required.

By Hoai Anh/Dieu Huong

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