Most distressed real estate markets

New potential and trends The Indochina Kajima Development Company, a joint venture between Indochina Capital and Kajima Corporation, recently launched an industrial real estate investment and development platform focused on the nationwide roll out of factory and warehouse properties for lease throughout the country’s key manufacturing and logistics markets. The Core5 Vietnam platform ( www.c5ip.vn ) plans to offer industrial assets of some US$1 billion in the next 5-7 years. Germany’s Framas Group has rented a ready-made factory area of ​​20,000 square meters in the KTG Industrial Nhon Trach 2 project (Dong Nai Province). Framas specializes in the production of high-quality plastic parts for customers such as Nike and Adidas. According to Fabian Urban, Head of Footwear Technology at Framas Vietnam, Vietnam was chosen as a factory site because of its superior facilities compared to other locations. The establishment of the new factory is part of the group’s strategy to … [Read more...] about Industrial real estate market recovers strongly

The race for mergers and acquisitions (M&As) in the real estate industry has continuously increased, with foreign investors sealing many deals in recent months. Vietnam boasting buoyant real estate M&A activities CapitaLand Development revealed on July 14 that it was acquiring a prime mixed-use site in Thu Duc district of Ho Chi Minh City, with an estimated gross development value of $720 million. This 8-hectare project will provide 1,100 apartments and will go into operation in 2027. A couple of weeks previously, Thai retail giant Central Retail also announced that it would invest an additional $869 million in the Vietnamese market, including developing complex projects and commercial centres over the next five years. The group also said that in the coming time, it will maintain the M&A target to accelerate its expansion in the retail real estate sector. Olivier Langlet, general director of Central Retail Vietnam, said, “We see Vietnam as one of the key … [Read more...] about Vietnam boasting buoyant real estate M&A activities

Illustrative photo. In these documents HoREA has asked for consideration in removing some bottlenecks and   obstacles facing 116 real estate and commercial housing projects. The obstacles are related to many legal regulations, such as the Law on Housing 2014, Law on Real Estate Business 2014, Law on Land 2013, and Law on Construction 2014. Although the People's Committee of Ho Chi Minh City has directed relevant departments, branches, districts, as well as Thu Duc City authorities to coordinate and consider proposals to resolve many pending issues, it seems that it is still very difficult to follow up on projects without amending the Laws. Shortcomings in Land Law After ten years of taking effect, the 2013 Land Law still shows many shortcomings, especially in the auction of land use rights. Regulations on the auction of land use rights are stipulated in many documents of various Laws, Government decrees, decisions of the Prime Minister, joint circulars between ministries and … [Read more...] about Laws need amending for real estate projects

Industrial real estate attracts foreign investors via the M&A method Acquiring a well-established local entity is a preferable market-entry strategy for many foreign companies, particularly in the industrial real estate market. What are domestic enterprises’ advantages in attracting foreign industrial real estate developers? In the M&A playground, foreign investors often have an advantage in terms of capital and experience. Meanwhile, the biggest strength of the local side is its insight, which is shown in its overall understanding of policies, the planning of industrial parks (IP), transport infrastructure, and even urban planning around IPs. In addition, they understand the characteristics of each region and the demographic, which will help businesses recruit employees more easily. To establish an IP, it needs the approval of the prime minister and dozens of signatures from various authorities, thus having an insight into policies and flexibility will create … [Read more...] about Industrial real estate attracts foreign investors via M&A

Among the notable stocks is Kinh Bac Urban Development Corporation JSC (KBC). In the first six months, KBC achieved nearly $47 million in net revenues and $103 million in net profit, down 61 per cent in revenues but up 271 per cent in profit over the same period last year. This year, it set a business plan with total revenue of $426 million and profit after tax of $195 million. Industry analysts say the demand for industrial real estate will continue in a positive trajectory in 2023, Le Toan KBC currently owns more than 4,700 hectares of industrial land and 917ha of urban area nationwide. Of which, the four zones of Que Vo Industrial Zone (IZ) and its expansion, Trang Due 1, and Trang Due 2 are fully occupied. The company is now developing two new IZs, Nam Son Hap Linh and Trang Due 3. Both of these projects cover large areas and are located in key cities and provinces in terms of industrial property development. Industrial Development and Investment Corporation JSC … [Read more...] about Industrial real estate remains defiant in stock market

In late July, PC1 Group JSC, a Vietnamese group operating in power construction, energy, and property, signed a contract to buy the entire stake in Singapore-based Nomura Asia Investment Vietnam (NAIV). M&A heating up in industrial real estate, illustration photo NAIV holds 70 per cent of charter capital at Nomura-Haiphong Industrial Zone Development Corporation, thus after the deal, PC1 will replace NAIV in operating Nomura-Haiphong Industrial Zone (NHIZ). This transaction is a part of PC1’s plan to develop industrial real estate to add to its funding strategy and gradually develop the group’s ecosystem. “Through merger and acquisition (M&A) transactions, PC1 will take advantage in terms of clean energy solutions to upgrade its partners’ existing IZs to eco-equivalents. We will also cooperate with partners to develop new eco-IZs to meet the demand of investors,” a PC1 representative said. For example, at NHIZ, PC1 plans to install clean energy solutions for … [Read more...] about M&A heating up in industrial real estate

Over the last few months Nhien has been selling out his VND23-billion (US$984,000) portfolio comprising houses and lands as the market showed signs of falling. The HCMC man with 15 years' experience in investing in property, says: "I have recouped 35 percent of my capital, less than my expectation of 50 percent. But it is good to have cash as backup instead of putting all of it in property during this time." The credit policy can have an unpredictable effect, which is why reducing risk is necessary, he explains. Minh, an investor who focuses on the city’s eastern and western markets, says the tightened credit policy and decline in number of transactions are having a negative effect on the market. Even selling is difficult due to low demand, he says. "Many investors are uncertain that prices would rise as happened during the pandemic. I am concerned there will be a wave of price declines at the end of the year." The HCMC property market is being affected by the State Bank of … [Read more...] about HCMC property investors expect market weakening this year

The supply of budget apartments in Hanoi stood at the lowest level in the past five years. Prices of apartments in Hanoi have now surged by 10-15% against the same period of last year and reached a record high level. Investors looking for information on a new real estate project in Hanoi. Photo: Cong Hung High demand for apartments in the capital means there are no more projects with prices of VND35 million (US$1,500) per square meter in the downtown area, while the average price of budget apartments in the districts of Ha Dong, Nam Tu Liem, or Hoang Mai has also surpassed the VND30-million mark per square meter. Data from CBRE revealed the average selling price of apartments in Hanoi rose by 9% year-on-year during the second quarter to $1,293 per square meter. Prices of high-class projects in downtown areas such as Hai Ba Trung, Dong Da, and Ba Dinh posted an average rise of 10%. Director at the Project Marketing Department of CBRE Vietnam Kiet Vo said … [Read more...] about Apartment prices in Hanoi are at a record high

The city would continue to explore opportunities to build new social housing projects to meet growing public demand. The Hanoi People’s Committee has instructed investors to complete the planning process for five concentrated social housing projects in a combined area of 273 hectares. A social housing project at Dong Ngac Ward, Bac Tu Liem District. Photo: Cong Hung To date, the authorities have approved the detailed planning for two projects at Tien Duong Commune, Dong Anh District. The remaining three at Co Bi Commune (Gia Lam District), Ngoc Hoi Commune (Thanh Tri District), and Dai Mach Commune (Dong Anh District) are still under planning. Hanoi’s authorities aimed to construct up to two social housing projects during the 2021-2030 period, and complete the preparation process for the remaining three. In case of positive progress in the investment procedures for all three projects, the city would raise the target from two social housing projects in … [Read more...] about Hanoi to develop five social housing projects

According to Ngo Thi Kim Thanh, senior expert at the Investment Analysis and Consulting Centre for SSI Research, the land lease demand in industrial zones (IZs) continues to secure positive growth for 2022 and beyond. This is attributable to diverse factors such as China’s strict pandemic policy, and reopened borders – paving the way for foreign investors to strike new deals or wrap up land lease procedures which were signed earlier. Prospects abound for land-rich industrial players, Illustrative photo. (Source: VNA) Thanh gave the remarks at a talk show on the charm of real estate tickers, hosted by VIR in Hanoi last week. In the stock market, the performance of real estate tickers is being deemed a bright spot in the context of a lasting market correction since April. During the period, the ticker IDC of IDICO Corporation gained more than 20 per cent, KBC of Kinh Bac Urban Development Corporation rose more than 15 per cent, and VGC of top building material maker … [Read more...] about Prospects abound for land-rich industrial players