Cold storage warehouse market forecast to grow 12 percent a year: Savills Vietnam
NDO/VNA - Vietnam's cold storage real estate segment is developing and is expected to reach 295 million USD
Mr. Paul Tostevin, Global Research Director of Savills, commented that investors have chosen to develop high-end real estate products in Vietnam in the context of rising land prices.
According to VNA, citing the opinion of senior expert Savills, this situation has lasted for a long time and created an imbalance between supply and demand. Most of the supply is in the mid and high-end segments, leading to a scarcity of low-cost housing products over the past two years.
![]()
Paradox
Mr. Paul Tostevin, Global Research Director of Savills, has just commented on the situation of Vietnam's real estate market.
Informing VNA, Savills Global Research Director said that the issue of buying a home at an affordable price is a major global challenge.
Over the past three years, Savills has seen growth of up to 19%. It's a large segment and is growing strongly amid low-interest rates. However, there have been significant changes.
Savills Research Department noted that the recent increase in interest rates has put great pressure on people's ability to buy homes. The consequence is a shift to the rental market. However, according to Mr. Tostevin, it is clear that the desire to buy real estate worldwide is still very large.
The above situation pushes the housing market around the world to face a difficult situation.
There have been many solutions from the Government and policies to support developers in building affordable, middle, and high-end housing. Solutions include setting goals or targets for affordable housing.
Talking more about the challenges of the Vietnamese real estate market and solutions to increase the supply of affordable housing, Mr. Paul Tostevin said that cross-border investment activities had decreased quite a lot in recent times.
When the economy is difficult, businesses often prioritize investing in main markets.
However, according to him, there is still an opportunity when the global financial and fiscal situation is more transparent. It is expected that the global GDP growth rate will decrease soon.
Savills' global research director noted that in recent times, foreign real estate developers often focus on developing more high-end products to match their brands when investing in Vietnam. This also happens in many cities around the world.
Affordable housing
Expert Tostevin believes that Vietnam still has advantages with an abundant young population and strong prospects for income growth.
Savills representative analyzed that the lack of affordable housing is not a problem unique to Vietnam but a painful problem for many countries. However, many markets have offered some impressive solutions that Vietnam can learn from.
Mr. Paul Tostevin cited as an example that Singapore has invested in affordable housing on a large scale. Currently, 90% of the country's population lives in HDB apartments owned and managed by the Government with special preferential policies for first-time home buyers. This ensures that citizens can buy homes.
Likewise, in the UK, housing is a huge challenge, but the Government has developed different types of affordable housing, including social housing. To attract investment in this segment, governments launch major support policies such as tax reductions, investment incentives, and low interest rates for home buyers...
Vietnam has a good policy foundation on social housing. The only difficulty is the implementation and development of projects. Previously, investors could achieve higher profits in other segments, so they did not want to invest capital in social housing with low profits.
However, real estate developers still have great opportunities in the Grade C housing segment or worker housing in large industrial zones.
If the Government continues to promote current incentive policies further, the problem of affordable housing or housing for low-income people will be improved shortly.
Vietnam has the opportunity to lead the region in sustainable development.
Mr. Tostevin pointed out that Vietnam has the opportunity to become one of the regional leaders in sustainable development.
Global investors are paying more attention to ESG (short for Environmental, Social, and Governance). Therefore, it is necessary to devise a comprehensive development plan that includes sustainable environmental measures.
Along with that are social sustainability standards, ensuring the project development process has safety measures, policies to protect workers, immigration processes, and site clearance.
Regarding ESG, the location must meet the basic requirements of the business's development policy to invest.
This will also become important for real estate hire purchase businesses, especially global corporations, who want to see it in their supply chains.
Savills representatives reiterated that ESG factors will continue to spread and affect every aspect of the real estate industry. Countries must build policies and legal foundations that create transparency for foreign investors.
The trend of shifting global supply chains and semiconductor production is taking place strongly in the Asia-Pacific region, where Vietnam receives attention from many large corporations worldwide. Interestingly, Savills Global Research Director said that Vietnam already has a foundation in the industry and has development potential, including geopolitical factors and trade and policy connections.
According to experts, 60% of global chip production is currently in the hands of TSMC (Taiwanese Chip Manufacturing Corporation (China). Their goal is to diversify production and chip manufacturing locations).
Governments currently apply a variety of incentive schemes to support this at the local level. For example, the US has a $50 billion CHIPS and Science Act Program to support the process of re-establishing semiconductor production lines.
In Europe, there is a similar microchip policy. China, Japan and India are also pursuing opportunities in this area.
According to Savills representatives, the Government must provide land funds, establish special economic zones, and ensure supporting infrastructure and affordable housing for workers.
