Recently, the Hanoi real estate market has been heating up, real estate prices in many segments have continuously increased, currently at quite high levels, making the investment potential in the Hanoi market not much left.
Meanwhile, in Ho Chi Minh City, throughout 2023, real estate prices almost did not grow in any type. This year, apartments grew first, followed by private houses. Therefore, real estate investors in Hanoi began to look for opportunities in the southern market.
Mr. Dinh Minh Tuan - Business Director of PropertyGuru Vietnam - commented that the real estate market in Hanoi and Ho Chi Minh City has clearly differentiated in the past two years.
In Hanoi, 2023 is considered a good growth year for the apartment type and will last until the third quarter of this year, then start to cool down very quickly in the last quarter of the year. Apartment prices here are recorded at about 61 million VND/m2, an increase of 58%; private house prices are about 197 million VND/m2, an increase of 52% and twice that of the Ho Chi Minh City market.
The land segment recorded stability last year and started to become active from the beginning of this year, typically the recent suburban land auctions. The level of interest recorded up to now has increased by 75%.
Meanwhile, the real estate market in Ho Chi Minh City throughout 2023 has seen almost no growth in any type. This year, apartments have grown first, followed by private houses, with interest levels recorded in the fourth quarter of this year at 20% and 26%, respectively. According to Mr. Tuan, this market is gradually "warming up" again as not only investors in Hanoi but also investors in Ho Chi Minh City are increasingly looking for opportunities.
Citing data from a survey of 180 Hanoi investors, Mr. Tuan said that 66% of participants are interested in and looking for investment opportunities in Ho Chi Minh City. In particular, interest in the capital market from Hanoi investors has decreased by 47% compared to the peak period in March.
"Not only Hanoians, investors in Ho Chi Minh City are also actively seeking opportunities in the Ho Chi Minh City market. This is a remarkable shift," Mr. Tuan shared.
“The cash flow from Hanoi to Ho Chi Minh City was very clear in the fourth quarter. However, the actual number of transactions is still low. Some investors believe that real estate prices in the city center are too high, while prices in the suburbs are relatively cheap, so they are still in a probing trend,” said Mr. Tuan.
Although the potential of the Southern market is highly appreciated, experts note that legal issues are still a major obstacle and investors and buyers need to consider carefully.
Regarding the legal issues of projects, Dr. Can Van Luc - economic expert said that legal problems are gradually being resolved; institutions are being improved, many related laws are being passed and come into effect; many decrees, policies... are being issued, creating the basis for entering a new phase.
Commenting on the recent movements of the real estate market, the expert said that currently, the real estate market has had many more positive changes than before. It can be seen that Vietnam has been recovering the real estate market in a more sustainable direction.
