19 May 2024
Real estate investors in the North are rushing to the South 3

Real estate investors in the North are rushing to the South 3

Many Northern real estate investors have flocked to Saigon and the Southern provinces one after another to hunt for real estate investment opportunities because of the attractive profit rate of this market, `soft` prices and good liquidity.

Joining the wave of Southern real estate investment quite early, from the beginning of 2000, Mr. Duc worked in the steel industry in Cau Giay district, Hanoi, gathered 50 gold trees he had collected and went to Saigon to hunt for 5,000 m2 of agricultural land in the ward.

In 2014-2015, land prices in this area increased rapidly as the wave of investors gathering land in suburban areas increased.

The South came later, in 2013, Mr. Tuan, who lived in Hai Ba Trung district, Hanoi, sold his Lac Trung townhouse for 12 billion VND and decided to go to Saigon to invest in real estate.

Many Northern investors have shifted capital flows from Hanoi to Saigon to buy real estate because the profit rate in this market is higher.

Last June 2016, Mr. Tuan sold 3 plots of land for profit along with the cash flow of the apartment for rent over the past 2.5 years, recovering 12 billion VND.

As a native of Hanoi, Mr. Trung, a German overseas Vietnamese, prioritizes investing in the capital.

This investor calculated that if he sold the house, he could currently earn 37 billion VND, excluding brokerage fees and transfer paperwork and procedures.

Therefore, in 2015-2016, this person decided to change investment direction, moving all capital flows to the South.

Facing the trend of Hanoi investors, in the first 3 quarters of 2016, many investors of famous projects in Ho Chi Minh City held grand sales openings in the capital.

Ho Chi Minh City real estate experts said that through actual surveys, the direction of real estate investment from Hanoi to Saigon is 100%, while the reverse direction from Saigon to Hanoi is only less than 5%.

Talking to VnExpress, Mr. Nguyen Tho Tuyen, General Director of STDA Real Estate Project Supermarket System (Cengroup) said that the profit rate of the Hanoi market is usually about 2-3% lower than Ho Chi Minh City.

Mr. Tuyen also emphasized that not all areas in Ho Chi Minh City have good profit rates, but only concentrated in the city center, which can reach 8-9% a year.

`Many FDI enterprises when investing in Vietnam choose Ho Chi Minh City as their first stop. Therefore, the demand for renting luxury apartments for foreign experts is always higher here than in Hanoi,` Mr.

Besides, according to him, the real estate market in Ho Chi Minh City is always more vibrant than Hanoi, with investors’ psychology being easy to buy, easy to sell, and easy to rent.

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