At this stage in the US-China trade wars, Vietnam is one of the key economic winners from the ongoing fallout.
Many companies are shifting their factories to Vietnam, underlining the potential for the strong development of industrial real estate, as reported in Viet Nam News. Savills Vietnam, a property agent, has released its white paper on Vietnam’s industrial real estate for the first half of 2019.
The list of possible buyers of industrial land includes many factories from China operating mainly in the fields of electronics, textiles, footwear and spare parts production, such as Hanwha, Yokowo, Shuafu, Goertek, Foxcom, Lenovo, Nintendo, Sharp, Kyocera and Oasis, according to the report.
“Although occupancy in key provinces grew year on year, available land coupled with an array of upcoming projects has seen foreign companies significantly increasing investment in Vietnam,” John Campbell, senior consultant at Savills Vietnam Industrial Services said.
“Manufacturers are showing interest in the Central Regions while developers are actively converting agricultural land to industrial usage, guaranteeing additional supply.”
The industrial sector is growing strongly with a tenfold increase in foreign direct investment (FDI) over the last decade. Good land supply is facilitating incoming manufacturing projects and the rise of rental options with ready-built factories (RBF) and built-to-suit (BTS) solutions. Vietnam must be more selective with projects to move up the value chain, improve competitiveness and ensure sustainable growth, the White Paper noted.
Low labour costs and government incentives, particularly preferential tax rates, will continue to be critical drivers of FDI. However, to maintain the transition to higher-value industries, Vietnam must focus on the quality rather than the number of investments.
By enabling the latest production technologies and increasing workforce training, the government is actively easing qualms around viability, labour shortages and rising costs for a more transparent business environment.
According to Savills Vietnam, the US-China trade war, additional investment and new free trade agreements have all had a positive effect on Vietnam’s industrial sector.
In the first quarter of this year, about 326 industrial zones were established, with a total area of 95,500 ha. Of this number, 251 industrial zones are under operation with an area of 60,900ha, accounting for 74 per cent of the total, while 75 industrial parks are under construction, compensation and site clearance on a total area of 29,300 ha, according to Savills Vietnam.Facebook page.
14% of condos around Bangkok are empty – good time to buy
Looking for a condo around Bangkok? Now might the right time to take the plunge with the head of the Appraisal and Estate Agents Foundation saying some areas have between 8-14% vacancy rates, some areas of Bangkok up to 17.5%.
Dr Sophon Pornchokchai made the remarks at a news conference yesterday.
“Adding developer price wars, plus inducements to purchase, this represents a buyers’ market.”
He says the figures relate to condos, single houses, townhouses and other dwellings where less than 15 units of electricity were being used, deeming them to be classified as ‘unoccupied’.
Around Bangkok there are 525,889 such vacant properties.
The top three areas for vacancies were Nonthaburi (north west of the central area) with 335,421 available properties with 45,848 unoccupied or 14%. This percentage was also true of Bang Na (south east of Bangkok) with 231,192 properties, 31,289 unoccupied. Bang Yai – to the far north west of the capital – has 221,492 with 28,016 unoccupied or 13%.
Locations with the lowest unoccupied dwellings are Bang Plee (south east) with 8% unoccupied, Min Buri (north) 9% and Lat Krabang (south east) 9%.
Dr Sophon says that when it comes to condos in Bangkok and the surrounding areas, between 13.5% and 17.5% are unoccupied.
“This glut has prompted a selling war with discounts and deals.”
FazWaz‘s CEO Brennan Campbell says that we’re in part of the buying cycle right now that is definitely in the buyer’s favour.
“Long-term, the Bangkok market continues to show its strength, but there is definitely an enormous range of property to choose from, in almost every location, right now. The current dip in demand is just part of the cycle.”
SOURCE: Daily NewsKeep in contact with The Thaiger by following our Facebook page.
Stricter controls and paperwork putting brakes on residential property market
The honorary president of the Thai Housing Business Association, Atip Bijanonda, is tipping the local residential market may fall by up to 10% this year starved of economic confidence, the global economic slowdown and the loan-to-value limits.
But he also believes the situation is far from the situation leading up to the 1997 economic collapse.
The Greater Bangkok residential market is now valued at 372 billion baht (in 2018). That’s a rise of 29% compared to the year earlier. So the drop this year is off the back of a very successful 2017.
For this year the market has fallen by 5%, according to the Thai Housing Business Association, with the largest declines in Q2, in retaliation to the LTV limits taking on April 1.
Some of Thailand’s major developers are now shelving some projects as the market soaks up a glut of properties constructed over the past two years.
Three property associations – the Housing Business Association, the Thai Condominium Association and the Thai Real Estate Association – are having meetings with the finance minister discussing the current property market.
Topics for discussion are the improvement in property regulation, construction permits, licences and stricter controls over developers and lending. The associations also want to discuss the current delays on Environmental impact assessments (EIAs). They say that since the responsibility for EIAs was handed over to the Bangkok Metropolitan Administration from the Office of Natural Resources and Environmental Policy and Planning in 2016, the process is now taking much longer.
Speaking to the Bangkok Post, Kobsak Pootrakool, deputy secretary-general to the PM for political affairs says that stricter lending criteria and the LTV rules are the main factors obstructing mortgage approvals for homebuyersKeep in contact with The Thaiger by following our Facebook page.
Wyndham adds two more hotels for Phuket’s south
PHOTOS: Artists impressions of the new Wyndham Nai Harn Resort Phuket
Global hotel group Wyndham has announced two more Phuket pipeline hotels. The announcement follows a long list of new developments and openings over the next few years on the island.
First for Wyndham, is a 353 key property named the Wyndham Nai Harn Resort Phuket at the popular southern west-coast beach. It’s scheduled to open late this year.
A second hotel is located in Chalong, with 150 pool villa units and will debut next year. Both properties are developed by the Cissa Group.
The group already has three properties on the island – Wyndham Grand Phuket Kalim Bay (between Kalim and Kamala), the Wyndham Sea Pearl Resort Phuket, overlooking Patong on the Patong Hill road, and Ramada by Wyndham Phuket Deevana Patong, a rebranding of an older hotel.
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