Southern investors are 'moving north' to seek new opportunities.

A wave of real estate businesses from the South expanding their investments into the North is occurring strongly amidst the increasingly limited land supply in major Southern cities, lengthy legal procedures, and the growing need for the development of new industrial cities.

On May 19th, the Nam Tien 2 Urban Area project, developed by Saigon Real Estate Corporation, commenced construction in Van Xuan ward, the central area of ​​the former Pho Yen city, Thai Nguyen province. The project covers nearly 35.3 hectares, with a total investment of over 4,200 billion VND, and is located adjacent to the Capital Region's Ring Road 5. This is considered a significant step for a real estate company with a long-standing presence in the Southern market.

Recently, in mid-April, SHINEC Joint Stock Company in the South also commenced the infrastructure project for the Phuc Yen Industrial Park in Phu Tho province, covering an area of ​​over 111 hectares with a total investment of approximately 1,980 billion VND. The project is expected to become a center attracting technology, electronics, mechanical engineering, and logistics businesses.

Many major real estate companies in the South are tending to expand their operations to the North.

Previously, many major real estate developers from the South were also accelerating their expansion into the North. In 2025, Phu My Hung will develop its first project in the North with a plan to invest nearly $1.1 billion in a large-scale urban area in Bac Ninh after more than three decades of focusing on Ho Chi Minh City and Southern provinces.

In fact, the northward trend in the real estate sector has become more pronounced in recent years, with northern industrial areas emerging as new growth poles.

According to a business representative, the expansion of investment by some Southern businesses into the North stems from various reasons, depending on the strategy and preferences of each investor. Thai Nguyen is being developed into a high-tech industrial center, attracting a large number of experts and technical workers. Therefore, urban projects here not only serve the needs of residents but also target customers working in industrial zones.

"The opportunity for businesses to come to Thai Nguyen stems from previous digital technology projects. During our survey, we found that the Van Xuan - Pho Yen area has a great advantage in terms of infrastructure and transportation connectivity, with fairly comprehensive investment," said the leader of a real estate company from the South.

Mr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, noted that in Ho Chi Minh City, many projects are facing legal obstacles and difficulties in the process of reviewing investment, construction, and land projects.

According to Mr. Dinh, despite high market demand, the supply has not met it, leading to soaring real estate prices, weakened transactions, and a more cautious investor sentiment. "Faced with such difficulties, investors are also tending to spread out to new localities to seek investment projects," Mr. Dinh said.

Mr. Dinh believes that currently, projects with good locations, connected to infrastructure, and developed systematically by reputable investors will still be well-received by the market. Conversely, projects that are overpriced or have unsuitable development strategies will face difficulties in liquidity and sales speed.

In a recent report on the industrial real estate market, Mr. Nguyen Phuoc Thuan, Leasing Director of Cushman & Wakefield Vietnam, stated that during the period 2026-2029, the northern market will have approximately 5,050 hectares of new industrial land from projects currently under planning.

Source: https://tienphong.vn/chu-dau-tu-phia-nam-bac-tien-tim-co-hoi-moi-post1844608.tpo