Recently, the Hanoi real estate market is welcoming the "leading birds" returning after a long time entering Ho Chi Minh City. The product that investors are interested in is low-rise real estate in the suburban areas.
Assessing the Hanoi real estate market, Mr. Nguyen Quoc Anh - Deputy General Director of Property Guru Vietnam said that in the past three years, many leading birds have gone to the provinces and invested in Ho Chi Minh City. However, after house prices in Ho Chi Minh City have increased, these leading birds are tending to return to their homeland - Hanoi. "We can see that the rate of return from apartment rental in Ho Chi Minh City is having a sharp decline, currently somewhere only 3-4%. Rents are falling while selling prices are constantly increasing, the real estate market in Ho Chi Minh City is not It is also attractive to investors," said Mr. Quoc Anh.
Also according to Deputy General Director of Property Guru Vietnam: "In the past two years, real estate prices in Ho Chi Minh City have recorded a record high increase, while in Hanoi, real estate prices in many areas have only recorded a very slight increase or gone. while the infrastructure in many areas has been very developed. This is the reason why investors' cash flows are tending to shift from the South to the North. Not only for individual investors, the market also has a tendency to move from the South to the North. are witnessing the real estate giants in Saigon North advance."
Report on the real estate price index of Hanoi and Ho Chi Minh City, recently Property Guru and Batdongsan.com also said that the index of Ho Chi Minh City has continuously increased sharply from 2018 until now. In Ho Chi Minh City, this index has always been at an increase of 26-28% since the fourth quarter of 2019. Meanwhile, the growth rate of Hanoi in this period was only 6-8%. The real estate price index gap between Hanoi and Ho Chi Minh City is always at 10%.
Since 2018, Ho Chi Minh City has surpassed Hanoi in the real estate price increase index.
According to the data of major market analysis units such as CBRE, Savills, JLL, the average price of apartments in the primary market in Ho Chi Minh City is at 45 million VND/m2, while in Hanoi it is 32. million VND/m2. Since the beginning of 2019, Ho Chi Minh City has been absent from new supply of affordable housing projects priced below 24 million VND/m2. However, in this segment, at the beginning of 2020, Hanoi still has a source of goods to launch in the market.
Surveying the price of a high-class project in Nga Tu So area, Thanh Xuan district, more than 5 km from Hoan Kiem center shows that high-class apartments are priced at 35-45 million VND/m2. Meanwhile, in the same segment in District 2, Ho Chi Minh City, some apartments on Hanoi Highway, 10 km from the center are being traded at 40-50 million VND/m2. Within a radius of 5 km to the center, many projects in Ho Chi Minh City have increased prices to 75-90 million VND/m2.
In the low-rise segment, about 10 years ago, selling a house in Hanoi could buy 2 houses of similar area in Ho Chi Minh City. However, after the crisis in the period 2011-2012, the residential real estate market in Ho Chi Minh City began to have strong price fluctuations. In particular, in the past 5 years, housing prices in Ho Chi Minh City have increased continuously, making many land lots here, despite having the same distance to the central area, the price is one and a half times higher than in Hanoi.
Talking about the investment trend of investors when returning to Hanoi, Mr. Quoc Anh said that longtime investors are often very sensitive, they choose very carefully, choose really valuable properties to invest in. invest. It is for this reason that recently, there has been a wave of investors pouring money into real estate around Hanoi and areas with developed infrastructure.
According to this expert, the area that investors are interested in is low-rise real estate in Long Bien, Hoai Duc, Nam Tu Liem.... These are areas with a strong breakthrough in infrastructure. , the price is still cheap with potential for strong price increase. Or areas close to the Airport like Dong Anh are also an option for investors.
Low-rise buildings in urban areas are the segment that many investors are interested in.
In the western area of Hanoi, in some shophouse projects, adjacent to the new supply in the West area also witnessed a strong increase in prices. "Never has the liquidity in the low-rise segment in urban areas been as good as in the past time. At Him Lam Van Phuc, the liquidity level in each sale is up to 80-90% of the quantity launched. is the only housing supply in the urban area within the past 1 year in the golden triangle area of the western real estate including Thanh Xuan - My Dinh - Ha Dong", representative of Him Lam Land Developer & Sales said.
Not only the western area, many other areas in Hanoi such as the East and the South are also attracting investors due to the news that Hanoi has just restarted the Red River planning project. In the Northern region, many investors are now looking to a series of abandoned urban areas that were forgotten after the real estate boom 10 years ago. The move of investors looking for even supplies on the secondary market from a decade ago has shown that the market is seriously lacking in new supply while the demand for buyers and investors is continuously increasing.
It can be seen that from 2020 the Hanoi real estate market has begun to witness an increase in prices after a wave of investors flocked to hunt for land. According to experts, from now until the end of 2022 will be the period when Hanoi real estate continues to establish a new price level when investors' cash flows are pouring in strongly, shortening the price gap between Hanoi and Ho Chi Minh City. HCM.
Nam Anh
From Nhịp sống kinh tế