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Highlights of Vietnam's real estate market

Vietnam continues to be an attractive destination for industrial real estate investors as the growth rate is stable, free trade agreements increase along with the young workforce, investment incentive policies and strategic geographical location.

Currently, the average asking price in Ho Chi Minh City is about USD186/m2, up 1% compared to the last quarter and 3% y-y, mainly due to limited supply and increased demand. Ho Chi Minh City rents still rank highest in the country, 31% higher than Hanoi, 35% compared to Long An, 72% compared to Binh Duong, 79% compared to Dong Nai and nearly double the price in Ba Ria - Vung Tau.

Meanwhile, the average asking rent in Hanoi reached US$142.3/m2, holding steady compared to the previous quarter but increasing by 1% compared to the same period last year due to rising rents in existing industrial parks with limited land for lease. The average rent of industrial land in Hanoi is still the highest compared to the northern provinces, 71% higher than Hung Yen, and 48% and 50% higher than Hai Phong and Bac Ninh, respectively.

According to the Department of Foreign Investment (Ministry of Planning and Investment), accounting at January 20, the country had 103 new FDI projects granted investment registration certificates with a total registered capital of nearly US$388 million, an increase of nearly 2.2 times in the number of projects but a decrease of 70.7% in the amount of committed capital compared to the same period last year. The newly registered investment capital decreased over the same period because there were not many large-scale projects, but the number of new investment projects increased sharply, indicating the confidence of foreign investors in Vietnam's investment environment.

It is expected that industrial real estate will continue to make breakthroughs in the coming time after having experienced a tumultuous year in 2021 due to the Covid 19 pandemic. This is still a promising segment with impressive growth indicators and in the long term some manufacturers are seeking for new markets to expand and Vietnam will be one of the destinations in Asia.


Source: NDH