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The segment that will lead the real estate market in 2024

2302-2024
According to Dr. Vu Dinh Anh, Industrial real estate is still a bright spot and different from the general difficulties in the market
 
Chuyên gia hé lộ phân khúc dẫn dắt thị trường bất động sản năm 2024
 

After industrial real estate, housing is enthusiastically interested by everyone.

Dr. Anh believes that, in the context of increasing investment, increasing domestic investment capital, and foreign investment capital, industrial real estate is very attractive.

The second favorable issue for industrial real estate is that a series of provinces and cities have had their planning approved, and most of them focus on industrial development. This helps industrial real estate be consolidated in terms of total area, scale as well as legality, and balance of supply and demand. Therefore, the industry will certainly grow in 2024.

According to this expert, the market has not yet recovered, businesses must restructure their products. Most important for the real estate market because we let it operate according to regulations and rules. The rules of the market are competition, supply and demand, and even the principle of competition for construction and construction resources. Therefore, the restructuring of real estate products will be done by investors and real estate businesses

To create favorable conditions, state agencies need to have policies to encourage and promote product restructuring. Besides, it is necessary to coordinate with housing policies, especially related to social housing and housing for low-income people. Therefore, the market will balance and optimally use state resources, business resources, and people's resources.

In other segments of the market such as resort real estate, Mr. Mauro Gasparotti, Director, Savills Hotels, said that the resort real estate market is recording many positive signs as demand is gradually recovering. It includes domestic and international tourist markets. Savills Hotels also sees many projects in the process of restarting. Over the past few months, our team has received quite a few requests for research consulting or hotel operator services.

With infrastructure advantages and diverse tourism and accommodation products, Da Nang is expected to continue leading the recovery process. Destinations that are familiar to domestic tourists such as Quy Nhon or Phu Yen also have more and more projects being planned. At the same time, these localities are also focusing on developing transportation infrastructure and high-end accommodation products to attract more international visitors.

Meanwhile, the luxury - high-end hotel market in Ho Chi Minh City is expected to remain competitive in the next few years because new supply is still limited. This is a pity because Ho Chi Minh City still needs more diverse types of accommodation products to meet the needs of many different tourist customers such as business and leisure tourists, and millennial tourists...

For hotels and serviced apartments, the market recorded an increase in the number of projects and it is in the planning process in the Hanoi market. In addition, the midscale - upper midscale hotel segment also recorded quite good growth rates in locations adjacent to industrial parks.

Regarding resort products, tourists are increasingly interested and have higher requirements. It is a resort element that combines wellness and sustainable development. Thereby, the wellness resort trend integrates with models such as onsen or medical tourism. It is increasingly being developed by many investors. In addition, the luxury segment continues to receive a lot of attention from investors.

“In addition, we also realize that the mergers & acquisitions market is quite vibrant. In addition, several previously delayed or unfinished projects are also in the process of being transferred to new investors to continue developing and completing the project", Mr. Mauro Gasparotti.

Regarding the residential real estate segment, Mr. Matthew Powell, Director, Savills Hanoi, said that in recent years, high-end housing projects in Hanoi and Ho Chi Minh City have still recorded interest from investors. This interest is even extended to some coastal resort markets such as Nha Trang or Da Nang.

However, it should be understood that the main force of the current market is not really in the high-end or luxury segment. Therefore, the market needs to diversify its products. Diversity needs to come from differences in design, construction techniques, and amenities. For short-term or long-term rental housing or tourism products, diversifying segments will expand more opportunities than focusing on developing luxury products.

According to Mr. Matthew Powell, luxury products are often known for their scale and unique amenities. The appearance of luxury and high-end products is also a signal that the market is diversifying. The current real demand comes from the mid-range/affordable segment, the main customers are young families, people who move to the city to work and want to find a place to settle long-term.

Therefore, investors need to consider the actual conditions of the market and diversify housing products, instead of a market with similar projects with limited and uncomfortable facilities.

The projects are well-planned, have good construction quality, and diverse amenities, and are often friendly. All are easier to succeed in than projects that only focus on a large scale and high prices. Everything needs to come from reality and the target market, where quality, design, and utility are the top factors.

 
 
 

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