Analysts predict that the industrial property sector will remain robust throughout the year

This year, it is forecast that industrial land will continue to be a bright spot in the real estate market with high demand and rising rents.

Despite the economic downturn, this segment saw solid growth last year with occupancy rates above 80% in the northern region and 92% in the southern region, according to real estate consultancy CBRE Vietnam.

The total area of newly sold industrial land in the north increased by 37% to its highest level in the past year, with more than 800 hectares.

But it decreased by 32% in the south due to limited new land supply, although in terms of area it remained high at 500 hectares.

In addition to the electronics and automobile industries, high-tech industries such as electric cars, semiconductors and green materials are also interested in Vietnam's industrial real estate, CBRE noted.

CBRE forecasts that industrial land rental prices will increase from 5-9% per year in the next 3 years in the north and from 3-7% in the south, and warehouse and completed factory rental prices will increase from 1-4% each year. %.

Data from MBS Securities shows that at the end of last year, the average rental price in industrial parks was US$123 per square meter across the rental cycle in the north and US$167 in the south.

SSI Research of SSI Securities Company expects positive developments in this period in 2024 thanks to the stable growth of FDI capital flows into Vietnam.

In the north, demand for industrial land could increase significantly this year due to the shift of production from China to Vietnam, mainly by electronics and semiconductor companies.

In the next 3 years, this area will have a number of new industrial parks, especially Industrial Park No. 5 of Hung Yen province with an area of 193 hectares, Tam Duong SHI IP Industrial Park of Vinh Phuc province with an area of 162 hectares. hectares and Song Lo II Industrial Park with an area of 165 hectares, and Gia Binh II Industrial Park of Bac Ninh province with an area of 250 hectares, according to MBS.

In the south, there will likely be many new tenants from the food and beverage, logistics and manufacturing industries such as clothing, wood products, leather and footwear, said MBS.

Supply will also increase with the new 700-hectare Cay Truong Industrial Park and the expansion of Nam Tan Uyen Industrial Park, both in Binh Duong province, MBS said.

It expects new industrial parks to focus on green and sustainable elements to attract more investors as high-tech projects requiring clean raw materials and low carbon emissions become increasingly popular.

But the industrial real estate segment will also face new challenges this year, including stiff competition from other Asian countries, it warned.

Vietnam's two biggest rivals in terms of FDI are India and Indonesia, both of which are investing heavily in infrastructure and providing attractive incentives to attract foreign investors, especially in the fields of investment. high-tech fields such as electric car batteries and cloud computing.

The global minimum tax effective from this year and the shortage of electricity supply during the peak production season are also factors that could negatively affect foreign investment in Vietnam, MBS added.