Weekly Vietnam Property News (07 – 13/11/2020)
Investment in industrial zones in Ho Chi Minh City increased by 7.16% in 10 months and a positive growth outlook in 2021
Industrial zones (IZs) and export processing zones (EPZs) in Ho Chi Minh City have attracted investments with a total value of 591 million USD in the first 10 months of this year, up 7.16% over the same period last year. , according to Ho Chi Minh City Import-Export Department Regional Management Agency (HEPZA).
Vietnam’s industrial real estate is forecast to continue to grow in the next 5-10 years with a new wave of investment, opening up opportunities to participate in the global supply chain for Vietnam.
The year 2020 is considered the time to open up the strongest development cycle in the past 25 years of industrial real estate. Many positive signs show that this segment is and will become a “low-lying area” attracting investment capital in 2021.
Currently, Vietnam is a large market with a population of over 100 million people and good consumption, which also presents great opportunities for foreign manufacturers to do business there as well as for new investors.
FDI capital reached US $ 270 million, down 19.14%. Meanwhile, domestic enterprises have invested more than 7.4 trillion dongs (321 million USD), up 47.6% over the same period last year. The service sector attracted the largest number of projects in the period, with a capital of $ 81.16 million, followed by mechanics, electronics, plastics, and rubber.
This is also the reason why many industrial real estate investors have invested in ready-built factories and warehouses to catch the wave of investment shifting between satellite enterprises when they come to Vietnam.
According to forecasts of experts and investors on Vietnam’s economy, in the current context of COVID-19, Vietnam’s economy will continue to grow in 2021, even doubling if the US economy will recover, because then, there will be a wave of investment in Vietnam.
M&A and the “blockbuster” screens in the real estate sector
The Covid-19 epidemic seemed to cause the M&A market to decline seriously, but in fact, many million-dollar deals were established in the real estate sector.
The M&A market is entering a new stage with thousands of transactions and the total value of transactions reaching nearly 50 billion USD, despite the impact of the Covid-19, but M&A in the real estate sector is still going quite exciting. with many blockbuster deals.
Many economic experts also believe that 2021 will be a year of convergence of many conditions and factors for M&A to “rise”. Factors affecting M&A in the coming time are more state divestments. Large-scale enterprises significantly increase the value of M&A in Vietnam.
Roadmap for the real estate market to enter a new cycle
The Covid-19 translation has cast a shadow on the globe, as a strong blow to the economy, in which it is impossible not to mention the sector heavily affected is the real estate market. But looking at another angle, according to some experts, the Covid-19 is like a prism to purify the market. Through that lens, people can see what is the direction of sustainable development. And in the new movement cycle, experts emphasize the trend of creating smart and livable urban areas.
After the period of “hibernation” due to the impact of the Covid-19 epidemic, real estate businesses faced the challenge, forced to restructure their products, and find a new strategic direction.
According to experts, the trend of developing smart and livable projects is considered a weak strategic solution, helping Vietnam’s megacities maintain a sustainable development pace in the future. And in the fierce race of a new cycle, real estate developers need to be quick to grasp this trend.
Structure and trend of real estate cash flow 2021
The market is also recording new and bold impulses. The trend of the real estate market will be warm again, associated with effective new legal documents that take effect from 2020 (such as new land price lists; sanctions for administrative violations in the field of land; Registration of mortgage of land use rights, land-attached assets ..); with maintaining ample aggregate demand in the low-cost commercial and social housing segments; increasing aggregate demand for industrial real estate and commercial land space associated with the implementation of new FTAs and the boom in FDI inflows in 2021 and also with flexible structural adjustment and increased utility of real estate products estate next time.
In fact, in the first months of 2020, many domestic and foreign investors have promoted to search for locations in industrial zones to invest in factory business on a large scale, with a land fund of 500 – 1,000 ha.
In addition to the bright prospect of industrial real estate, real estate serving a resort model combining tourism, entertainment and on-site healthcare has a chance to recover and will be able to blossom in time. next.
In the year 2020 – 2021 and coming here, the market will witness a purification of developers for resort product development capabilities. Large-scale, multi-utility, multi-functional, and diversified marine cities will be the trend of resort real estate in the next decade.
In addition to the above two trends, the real estate market continues to record cash flows towards social housing products, quality and utility apartments, residential land, and private houses with legal papers and prime location. In particular, the apartments will be more attractive to investors than alley houses and alleys, due to the increasing trend of demand for utilities and the quality of life of young consumers.
In addition, the condominium and resort market segments will be more encouraged along with the trend of increasing promotion policies, stimulating more and more diversified and attractive buyers demand, not only changing the premium. , extend payment time, give vouchers, but also reduce the payment rate, increase the discount rate, commit to buyback …
The demand for housing in the East will increase sharply because of Thu Duc city
The establishment of Thu Duc city is expected to have a great impact on housing demand in this area. Not only is the need for settlement, but also commercial activities of the East will also increase when the regional planning comes into existence. With its position as the leading financial center in Vietnam, Thu Duc City welcomes the rising wave of international investment, leading corporations in the world such as Japan, Korea, France, America … are constantly pouring capital. . The strong economic impact of this area will lead to the growth of the real estate market, resulting in huge demand for houses, apartments, and offices in the future.
In terms of infrastructure, 70% of Ho Chi Minh City’s infrastructure investment is concentrated in the East area with a series of large and expanded transport routes showing HCMC’s determination to increase speed. infrastructure and population development here.
As soon as the information of the Thu Duc City project was announced, the land price in District 9 increased by 3-5%. Urban projects completed with full legal will soon become the focus, not only customers with real needs but also investors are also particularly interested.
Compiled from many sources by LOOKOFFICE
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