According to the new news from the Vietnam Association of Realtors (VARS), the trend of shifting to the non-central area not only reflects the need to seek real estate investment opportunities (RE) but is also affected by objective factors such as planning policies, transport infrastructure and changes in buyer demand.
Accordingly, central real estate prices in large cities such as Hanoi and Ho Chi Minh City are increasingly high, reaching a record level, making investment more difficult when capital costs increase while profit margins gradually decrease or are difficult to ensure when projects in the central area often encounter legal problems and implementation time is long. This forces investors with weak financial resources to seek potential markets in the suburbs.
In addition, the Government and localities are stepping up the planning for satellite urban development, expanding urban space to reduce population and infrastructure pressure in the center, helping districts/counties near the center and provinces, and towns on both sides of the two urban areas to especially become attractive destinations for both individual and business investors.
Investing in transport infrastructure, including highways, beltways or public transport systems such as metro, shortening the time to connect satellite areas with the city center, not only creates added value for real estate but also attracts a large amount of real estate demand.
According to VARS, individual investors often focus on types such as land plots, commercial townhouses, or new urban area projects with reasonable investment value. Instead of focusing on short-term surfing, many investors are choosing a strategy to accumulate land in the suburbs, taking the lead in future development when the infrastructure is completed.
This trend is also an opportunity for real estate businesses to develop projects, with diverse scales. Many large real estate enterprises have taken advantage of the opportunity to develop large-scale urban areas in neighboring provinces. Projects such as Aqua City (Dong Nai), Izumi City (Bien Hoa) or Vinhomes Ocean Park (Hanoi), Sun Urban City (Ha Nam) are proof of this shift.
For small and medium-sized real estate enterprises, project development in suburban areas, satellite cities or neighboring provinces/cities is not only an opportunity but also an inevitable direction in the context of increasingly tightening legal regulations on land, housing and real estate business, especially high land costs, making them unable to compete and develop projects in the central area.
VARS believes that the trend of moving to the area outside the center will increasingly be clearly defined. However, investors choosing to invest in areas outside the center need to study and evaluate carefully, due to possible legal problems related to planning, land use rights and legal procedures. At the same time, despite great potential, not all areas have enough attraction to ensure the consumption of real estate products. In addition, some areas still have limited public utilities, making it difficult to attract residents and investors.
