Real estate investment capital flows to the South: A notable new trend

The "Southward" trend of real estate investors is becoming increasingly evident.

Batdongsan.com.vn's report shows that investors from the North account for an overwhelming proportion of customers looking to buy in Ho Chi Minh City, with Hanoi accounting for 33%, Hai Phong and Nam Dinh both accounting for 24%, and Quang Ninh 10%. In the first 6 months of the year, up to 75% of customers looking to buy real estate in Ho Chi Minh City came from other provinces, of which 61% were investors from the North.

Race to collect goods

Similarly, One Mount Group's Center for Market Research and Customer Insights also recorded that more than 50% of Hanoi customers intend to buy real estate in Ho Chi Minh City and about 20% are ready to pay immediately, showing that the "Southward" trend of investors is becoming increasingly evident.

Vinhomes Grand Park urban area in Ho Chi Minh City is attracting buyers from the North.

According to a survey by a reporter from the Nguoi Lao Dong Newspaper in the Vinhomes Grand Park area (HCMC), in just the past few weeks, a series of apartments have been continuously booked by customers from Hanoi. Mr. Q. Hung, a sales representative of a real estate brokerage company in HCMC, said: "In just one month, I have sold at least 10 apartments, mostly to customers from Hanoi. Many people just need to watch the video and documents, see the price is suitable and transfer the deposit immediately."

According to Mr. Hung, the apartments that are "collected" strongly are 2-3 bedroom apartments priced under 3.5 billion VND or 2 bedroom apartments under 2 billion VND. "Due to the huge demand, some homeowners, after seeing customers quickly close the deal, immediately change their minds, or ask for an additional 200-300 million VND, causing some transactions to not be completed in time," he said.

Ms. Huyen Thanh, a broker in the same area, also confirmed the sudden increase in the number of Hanoi customers: "Many of the apartments I advertised for the whole year could not be sold, but in the past 2 weeks, Hanoi customers came in and sold them immediately. They even accepted higher prices without negotiating."

According to Ms. Thanh, many investors in the North only deposit 200-300 million VND, then within 30-45 days if someone pays 150-200 million VND more, they will transfer the property immediately, instead of waiting for the notarization date. "Hanoi customers act quickly, look quickly, and when they see a profit, they sell immediately" - she said.

A similar situation occurred in Phu My Hung area (old District 7), where the remaining inventory of brokerage companies was quickly bought up by Hanoi customers. Mr. Hoang Sang, a broker here, shared: "There are customers in Ho Chi Minh City who are still asking the bank about loans but someone else has already closed the deal. Many customers in Hanoi transferred a deposit of 500 million VND without even seeing the house."

Ms. Hoang Thu, a broker living in Hanoi, is selling 10 apartments in a project in Ho Chi Minh City, all of which were purchased by her regular customers. "I posted it less than 2 days ago and someone deposited 4 apartments. They bought them to rent out, both to have cash flow and to wait for the price to increase," she said.

Meanwhile, Ms. Nguyen Huong, also a long-time investor from Hanoi, believes that Ho Chi Minh City is still an attractive market. "The prices here are more reasonable than in Hanoi, the investor is reputable, and the rental profit is good. I once bought a 2-bedroom apartment in District 4 for more than 3 billion VND, now I sell it for double the price, not to mention the annual rent of more than 200 million VND" - Ms. Huong said.

Need to control speculation and price inflation

According to Mr. Tran Minh Tien, Director of the Center for Market Research and Customer Understanding One Mount Group, recently, many projects in Ho Chi Minh City often sell out on the opening day, especially projects with clear legal status and good locations. When Hanoi prices increase rapidly, many investors turn to Ho Chi Minh City - where there is still room for growth.

Explaining the wave of Northern investors flocking to the South to buy real estate, Mr. Ta Trung Kien, Deputy General Director of Viet A Real Estate Company, said that this trend is not new but is a continuation of the investment wave following large investors from the North to the South such as Vingroup, Sun Group, T&T Group, EcoPark...

"When a reputable investor opens a project, loyal customers from Hanoi also follow. They invest profitably, then reinvest in other projects, creating a continuous cycle," he said. However, Mr. Kien also warned: "Northern investors often tend to accumulate a lot of goods, create price waves, and then withdraw quickly. They speculate heavily, forcing home buyers to buy at high prices."

Meanwhile, Dr. Pham Viet Thuan, Director of the Institute of Natural Resources and Environmental Economics, believes that the "Southward expansion" trend of Northern investors also comes from weather and psychological factors after storms and floods.

"When natural conditions are harsher, many people tend to migrate to the South to live and invest. Demand increases while supply is limited, pushing prices up. To cool down or control prices, a tighter credit policy is needed, especially limiting loans to buy second and third homes to avoid speculation," Mr. Thuan suggested.

Sharing the same view, Ms. Giang Huynh, Director of Savills Ho Chi Minh City Research Department, said that to control prices and limit speculation, it is not only necessary to tighten credit but more importantly, to unclog supply sources.

"It is necessary to reform project approval procedures, remove legal obstacles, and speed up implementation progress. When supply is supplemented, especially in the affordable segment, housing prices will gradually stabilize," she said. In addition, she emphasized the long-term goal of "the rate of income growth of people must be commensurate with or higher than the rate of housing price growth" - to ensure housing accessibility, especially for the middle and low-income groups.

Source: https://nld.com.vn/dong-von-dau-tu-bat-dong-san-dich-chuyen-vao-nam-196251020210553644.htm