CapitaLand Investment, a Singaporean real estate asset manager, is considering purchasing US$110 million worth of industrial land in Vietnam. This is to cater to growing factory demand from Chinese and South Korean companies like Samsung, according to the company’s CEO.
Of note, foreign businesses have been a key driver for the Vietnamese real estate market this year. From January to June, more than US$2.4 billion worth of foreign direct investment was registered in the sector, a significant jump from US$1.53 billion in the first six months of 2023.
That said, price competition is reportedly rising among Vietnam’s regional peers in the industrial real estate sector with construction costs, particularly high land prices, a key challenge in attracting manufacturers to Vietnam, Managing Director of Knight Frank Vietnam, Alex Crane, telling a forum back in December.
“While industrial and manufacturing property in Vietnam will continue to be a significant segment, attracting new manufacturers and filling ready-built facilities will present challenges in 2024,” he said.
See also: Vietnam’s Real Estate Market Recovery 2024: Unpacked