Northern investors migrating south
03:01, 2015/06/24
There has been a rising trend of Hanoians buying properties in central and southern provinces.
A range of project developers have begun launching their projects to the Hanoi market in response to an increasing demand from the capital city for properties in the central and southern regions of the country. Such developers include Phu My Hung, VinaCapital, CapitaLand, Kepple Land and many others.
During the recent launch of The Point project to the Hanoian market, a representative from VinaLiving (of VinaCapital) said that Hanoian buyers dominated its projects, with around 70% of total buyers coming from the capital.
“Properties in the south and central provinces are attractive to Hanoians, as they can buy-to-lease the properties, or purchase them as investment opportunities,” said Matthew Koziora, director of Transaction at VinaLiving.
NovaLand recently introduced a number of apartments located in Ho Chi Minh City to the real estate market in Hanoi. Among those, about 300 units from The Sun Avenue were introduced to the northern buyers.
According to Duong Hong Cam, executive director of The Sun Avenue, NovaLand has built many large scale projects such as the Sunrise City, The Prince Residences, Tropic Garden and Lexington Residence. Many of those, Cam said, were highly sought after by buyers from the northern region.
“We are looking for buyers who want to find a property and sublease it for a profit. The profit levels of buy-to-let in Ho Chi Minh City are now relatively high – up to 8% per year,” said Cam.
Pham Thanh Hung, general director of STDA property transaction centre, the distributor of The Sun Avenue said that he aimed to attract northern buyers who are living in Ho Chi Minh City.
According to Hung, in district 7, around 40% of purchases were made by northern buyers. “Projects in district 2 have more advantages, such as improved infrastructure, and will surely attract more northern buyers,” Hung said.
“In order to be attractive to northern buyers, properties must be proven to return high profits. According to our estimation, the profit level of high-end apartment projects in the Ho Chi Minh City centre could be up from 7 to 8 %, compared to levels in Hanoi of only 3 to 4%,” Hung said.
In addition, other factors that attract northern buyers to properties in Ho Chi Minh City are the high population density and a higher amount of foreigners.
Meanwhile, properties in the central tourist hotspot city of Nha Trang are also popular among buyers from Hanoi and Ho Chi Minh City. According to Savills Vietnam, up to the second quarter of this year, Nha Trang has more than 2,800 units from 10 projects.
Almost all of those projects are located in the beachfront area, especially in Tran Phu street, with the average price ranging from VND23million to 60 million (US$1,095 to US$2,857) per square metre. The most desired units are typically one and two bedrooms, and they significantly easier to lease.
Savills also reported that the majority of these buyers came from Hanoi and Ho Chi Minh City with the desire to secure a property as a second home or a buy-to-lease investment.
During the recent launch of The Point project to the Hanoian market, a representative from VinaLiving (of VinaCapital) said that Hanoian buyers dominated its projects, with around 70% of total buyers coming from the capital.
“Properties in the south and central provinces are attractive to Hanoians, as they can buy-to-lease the properties, or purchase them as investment opportunities,” said Matthew Koziora, director of Transaction at VinaLiving.
Photo for illustration
|
NovaLand recently introduced a number of apartments located in Ho Chi Minh City to the real estate market in Hanoi. Among those, about 300 units from The Sun Avenue were introduced to the northern buyers.
According to Duong Hong Cam, executive director of The Sun Avenue, NovaLand has built many large scale projects such as the Sunrise City, The Prince Residences, Tropic Garden and Lexington Residence. Many of those, Cam said, were highly sought after by buyers from the northern region.
“We are looking for buyers who want to find a property and sublease it for a profit. The profit levels of buy-to-let in Ho Chi Minh City are now relatively high – up to 8% per year,” said Cam.
Pham Thanh Hung, general director of STDA property transaction centre, the distributor of The Sun Avenue said that he aimed to attract northern buyers who are living in Ho Chi Minh City.
According to Hung, in district 7, around 40% of purchases were made by northern buyers. “Projects in district 2 have more advantages, such as improved infrastructure, and will surely attract more northern buyers,” Hung said.
“In order to be attractive to northern buyers, properties must be proven to return high profits. According to our estimation, the profit level of high-end apartment projects in the Ho Chi Minh City centre could be up from 7 to 8 %, compared to levels in Hanoi of only 3 to 4%,” Hung said.
In addition, other factors that attract northern buyers to properties in Ho Chi Minh City are the high population density and a higher amount of foreigners.
Meanwhile, properties in the central tourist hotspot city of Nha Trang are also popular among buyers from Hanoi and Ho Chi Minh City. According to Savills Vietnam, up to the second quarter of this year, Nha Trang has more than 2,800 units from 10 projects.
Almost all of those projects are located in the beachfront area, especially in Tran Phu street, with the average price ranging from VND23million to 60 million (US$1,095 to US$2,857) per square metre. The most desired units are typically one and two bedrooms, and they significantly easier to lease.
Savills also reported that the majority of these buyers came from Hanoi and Ho Chi Minh City with the desire to secure a property as a second home or a buy-to-lease investment.
12:17, 2025/02/25
Vietnam eyes top 3 in investment environment in ASEAN next 2 years: Party Chief
A key objective is to trim off at least 30% of administrative procedures and cut both business costs and unofficial fees.
18:03, 2025/02/22
Vietnam attracts South Korean tech investment at SEMICON Korea 2025
The event provided a platform for Vietnam to showcase its semiconductor potential and reaffirm its commitment to developing high-tech industries and strengthening international cooperation.
16:46, 2025/02/20
Swedish group plans US$1 billion investment in Binh Dinh recycling plant
By creating a large number of jobs and promoting a green economy, the initiative is important in establishing Vietnam as a global hub for the circular textile sector.
10:52, 2025/02/13
Samsung plans to invest in AI, semiconductors in Vietnam
Vietnam will continue improving its investment environment and driving strategic breakthroughs in order to usher in a new era of economic development.
17:20, 2025/02/07
Vietnam's data center construction costs among the lowest in Asia Pacific
The country has a lot of potential to become one of the most important data markets in the region.
21:05, 2025/02/03
Bright prospects for FDI inflows into Vietnam in 2025
Market size, growth potential, low labor costs, and stable political and social conditions continue to be Vietnam’s selling points in attracting foreign investors.
- Foreign companies confirm investment expansion in Vietnam in 2025
- PM invites Skoda to manufacture electric vehicles in Vietnam
- US Berggruen Holdings to help Vietnam set up investment funds
- Vietnam releases Esports White Book 2022-2023
- Aircraft manufacturer Embraer seeks comprehensive aviation partnership with Vietnam
- Better links with FDI firms to support Hanoi businesses