According to experts, the industrial property sector is poised to lead the real estate market in terms of growth, with increased activity anticipated in the housing segment.

Despite a challenging year for the market in 2023, the industrial property sector stood out as a bright spot, experiencing heightened demand and rental rates. Provinces such as Thai Binh, Nghe An, and Ba Ria-Vung Tau emerged as promising locations for industrial properties. Occupancy rates in industrial zones reached 83% in the north, 91% in the south, with a national average of 80%, as reported by property consultancy Savills Vietnam.

Experts also foresee robust activity in mergers and acquisitions (M&A) within the property market.

In the first ten months of 2023, M&A transactions were valued at $4.4 billion, constituting nearly a quarter of all M&A transactions in the country, according to audit firm KPMG. The average transaction value more than tripled from the previous year, reaching a five-year high of $54.5 million.

Property consultancy Cushman & Wakefield predicts a substantial influx of foreign capital into the real estate market from 2024 to 2026.

Numerous deals involving foreign investors have recently been completed or are currently under negotiation.

According to Cushman & Wakefield, foreign investors predominantly target lands free from legal complexities, facilitating hassle-free development.

The housing market is attracting interest from both domestic and foreign developers, expecting a rise in new supply amidst sustained high demand.

An increase in supply towards the end of 2023, coupled with developers offering attractive promotions, contributed to the segment’s momentum, as stated by the Vietnam Association of Realtors (VARS). VARS analysts anticipate the entry of more housing projects into the market this year, particularly in the first and second quarters.