Industrial real estate, resorts and other rental properties are expected to stir the market by the end of 2019.
Industry will be the most attractive sector in the second half of 2019. Source: Internet
Deputy Head of Department of International Business - Marketing - Ho Chi Minh City University of Economics Huynh Phuoc Nghia said that the demand for real estate investment was greatly affected by the US-China trade war and macroeconomic developments as well as legal progress.
In the past 8 months, the psychology of waiting and investing in defensive style "firmly dressed" has tended to get stronger. Therefore, in the last months of 2019, real estate types that are likely to bring cash flow will become more attractive. This expert pointed out 3 investment channels that promise the most positive developments in the real estate market in the second half of the year.
Real estate industrial park
According to Mr. Nghia, industry will be the most attractive field in the second half of 2019 in the context of increasingly complicated US-China trade tensions. This competition adds a catalyst to help Vietnam catch the eye of many foreign manufacturers, more or less to help Vietnam benefit because manufacturers will shift the supply chain from China to South Asia areas which has lower costs.
In addition, Vietnam's efforts to expand the free trade area, the latest of which is the Europe-Vietnam Free Trade Agreement (EVFTA), which was signed at the end of June 2019, was also signed. The expectation is to increase the attractiveness of Vietnam's industrial market and boost demand for industrial real estate.
The sharp increase in rental demand thanks to the escalating US-China trade war has pushed up rents for industrial land, premises, and factories in the Vietnamese market by 10-15%, depending on region and region. In the remaining months of the year, industrial real estate may increase supply and there will be more mergers and acquisitions or more new tenants and investors.
Resort real estate
Preliminary statistics for the past 8 months, the supply of resort real estate is covering quite dense throughout the real estate markets across the country. Along with the increasing basket of goods, about 65% of participants in the real estate market in 2019 are choosing coastal real estate to invest.
The major difference from the previous period is that individual investors and businesses are getting used to the radius of moving the market farther, the openness as well as the size of the market are getting bigger.
Mr. Nghia confirmed, the wave of investment in coastal real estate in Vietnam will increase in the next few quarters. The strong development of resort real estate investment channel due to impressive tourism growth, inter-regional infrastructure is getting better including road and aviation.
In addition to the increase in the number of national tourists, domestic tourism has also grown strongly in terms of quantity and quality change (tourism habits, consumer preferences when traveling) thanks to the improved living standards of the people, demand for greater experience. In the next few quarters to the next few years, the wave of resort real estate is expected to continue to grow as Vietnam has not yet fully exploited the great potential of the smoke-free industry.
Multipurpose real estate: ownership - accumulation - exploitation
According to Mr. Nghia, in the first 8 months of 2019, the real estate market tends to move sideways, transactions decline, and supply in major cities is on the decline. Investor sentiment therefore started to enter more hesitation and defensive areas than the period 2016-2018.
Therefore, in the last months of 2019, it is likely that the types of real estate of houses, offices, commerce and services can meet the demand of both owning, accumulating value and exploiting immediately in order to attract investment rather than conventional surfing investment products. This psychological trend is considered as a defensive step for the unpredictable scenario of the market in the next 12 months.
According to Vu Le