Northern investors are ready to spend money on real estate in Ho Chi Minh City
At the Vietnam Real Estate Conference - VRES 2024, Mr. Dinh Minh Tuan, Southern Regional Director of Batdongsan.com.vn affirmed that cash flow is showing signs of looking for opportunities in the South after a period of mainly concentrating in Hanoi. The survey shows that 66% of investors in the North were surveyed interested in real estate in the South.
The survey results of One Mount Group also show that nearly 50% of investors in the North show interest in the apartment segment in Ho Chi Minh City. Of which, 20% are willing to pay immediately.
As a result, in the fourth quarter of 2024, Ho Chi Minh City with 3 commercial housing projects - 912 apartments in the high-end apartment segment eligible to be launched on the market, 100% of the supply was consumed in the quarter, according to a report from the Ho Chi Minh City Department of Construction.
Not suddenly, Ho Chi Minh City real estate "receives" customers from the North. Factors in infrastructure, supply, legality and value increase have created this remarkable shift.
According to the consumer psychology report of Batdongsan.com.vn, infrastructure is an important criterion for the taste of shifting investment from North to South when up to 91% of survey participants prioritized this criterion. Recently, the transport infrastructure in the East, especially Thu Duc, has been continuously completed; housing projects have been restarted.
In particular, some reputable developers announced new supply sources that brought positive effects to the market. However, in general, future supply is like salt abandoned compared to increasing demand.
According to Batdongsan.com.vn, primary real estate is still given priority thanks to its reputation as a developer, financial support and potential for price increases. The survey of this unit also shows that up to 23% of buyers have an investment mentality. This is not too surprising as real estate is still the channel with the best yield in Vietnam in the past 10 years and Vietnam's real estate is growing the fastest in the world (59%), analyzed based on data from Global Property Guide.
Mr. Hung Tran, who bought an apartment in Thu Duc two years ago, is considering expanding his investment portfolio. He shared: Thu Duc Real Estate possesses long-term profit potential thanks to its ownership: infrastructure boost, policy boost and boost in multi-utility urban areas that can change the face of the entire area. All three of these boosts are being realized extremely quickly, so this is an opportunity to take the lead when the market is still in the transition stage".
Urban area: top 3 criteria for buying a house for people in the North
Batdongsan.com.vn also pointed out that legal conditions are the top concern, accounting for 59%; followed by sustainability, green space and living environment, accounting for 56%. Infrastructure and connectivity are also important criteria for the investment taste of Hanoians moving to the South. In addition, convenient services (53%) and construction quality (52%) are indispensable factors in the taste of investors.
Overall, these factors can only be met by projects including apartments and low-rise houses in complexes developed by reputable, fully capable units, combined with international design units.
One Mount's report also clearly shows that multi-functional urban areas are prioritized by home buyers in both areas, along with schools and hospitals, which are the top 3 criteria for home buyers in the North.
The opportunity belongs to urban areas with complete and solid traffic infrastructure connection, with land funds for parks and utility systems, including hospitals, schools, shopping malls... to meet all needs in daily life of the people.
One Mount Group also pointed out that the East is still the focus of the Ho Chi Minh City market, accounting for 72% of the total supply. In particular, the multi-function urban area model is increasingly popular, meeting modern living trends, where residents can enjoy a comfortable and complete life without having to move around much.
This is the reason why urban area projects in the East of Ho Chi Minh City have received positive demand over the past time. According to Avison Young, real estate in Thu Duc is also constantly establishing new premises. Despite the high price, the absorption rate still exceeds 80%.
One of the reasons why Thu Duc urban area real estate is well absorbed is because of the scarcity of land funds. Currently, it is very difficult to find a land fund in the center of Ho Chi Minh City of hundreds of hectares to develop a project. In the future, buyers will only find new supply mainly in neighboring provinces.
Sharing her investment taste, Ms. Ngoc Huong (Hanoi) said: Up to now, when choosing to buy real estate, I always prioritize products located in urban areas, with solid legal status, connecting to major routes, easy to travel to the airport and especially having entertainment, shopping, school, hospital facilities... These projects are ideal for settlement and investment because of their high living standards, always seeing in advance the story of increasing value in the future, especially when the utility system is completed and put into service for residents".
With outstanding growth potential, real estate in Thu Duc urban area is not only a golden opportunity to settle down and increase asset value but also shape the future of the area.
