Profits in the industrial real estate sector for the third quarter of 2021 were very much a mixed bag.

While the profits of some industrial park companies fell sharply year-on-year in the quarter, including the Nam Tan Uyen Industrial Park Joint Stock Company (HNX: NTC) and the Thong Nhat Joint Stock Company (HNX: BAX), others posted an increase, such as the Sonadezi Chau Duc JSC.

FDI inflows into industrial real estate have slowed in the short term due to Vietnam’s infrastructure, warehousing, and logistics not being fully developed compared to other countries in the region.

According to the Agribank Securities Joint Stock Company (Agriseco), the average P/B and P/E index in the real estate industry in the third quarter rose about 30 per cent compared to the quarterly average in the 2017-2020 period. Social distancing also reduced the need to expand factories and staff numbers in many southern industrial parks, but had a negligible impact on the operation of northern industrial parks.

FiinPro also emphasized that an expected increase in site clearance costs due to the sharp increase in land prices in many cities and provinces during the “land fever” in the first half of this year is an important factor investors need to consider when contemplating an investment in industrial park real estate stocks in 2022.