Vietnamplus

The trend of sustainability will continue to be a driver of Vietnam’s real estate industry, heard a workshop on April 7.

Impact of COVID-19 pandemic and the rising cost of investment has led to sharp decline in the profitability of rental apartments and shophouses.

The trend of shoppers going online en masse is driving demand for cold storage facilities, something that is in severe short supply in Vietnam.

A hybrid working model comprising both remote and office-based work is a trend that many companies will embrace since working methods have changed globally after the pandemic broke out, including in Vietnam, experts have predicted.

While 2020 is believed to have changed the real estate industry, trends in the sector this year are forecast to sustain or be aligned with demand in the market.

Experts have forecast a tough time ahead for the domestic retail, with many store owners struggling to pay rent after being hit hard by the COVID-19 pandemic.

Foreign investors are planning to expand their operations in Vietnam this year, creating an opportunity for industrial property development despite the COVID-19 pandemic, according to experts.

With COVID-19 and trade tensions driving the shift of production lines from China to Southeast Asia, Vietnam, in particular, seems to have emerged as an attractive destination for investors and manufacturers alike, experts have predicted.

Industrial property in the Northern Key Economic Zone (NKEZ) saw strong development in the third quarter of this year, according to Jones Lang LaSalle firm (JLL Vietnam).

Vietnam needs to renew its real estate market to attract more foreign investors and increase the quality of foreign direct investment (FDI) in the sector, according to experts.

Investors are looking for industrial and logistics assets through joint ventures with local industrial developers and/or acquisition of land and operating real estate, Jones LaSalle Vietnam Co Ltd (JLL Vietnam) said in a statement. ​

Supply of landed houses and villas in Ho Chi Minh City is short since developers are wary of this segment due to high costs and extended procedures, experts said.

Vietnam’s industrial real estate sector stands ready to take off after the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) comes into effect, experts have said.