If previously, the lack of "footprints" of Northern investors caused low liquidity in the Southern real estate market, this trend is beginning to reverse.
Cash flow of Northern investors into Southern real estate appears
If previously, the lack of "footprints" of Northern investors caused low liquidity in the Southern real estate market, this trend is beginning to reverse.
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| Customers sign home purchase contracts. Photo: Le Toan |
North-South investors return
Although it has not yet recovered clearly, the real estate market in the South has improved a lot compared to the beginning of the year, according to Mr. Tran Hien Phuong, General Director of SeaHoldings Company. Liquidity has gradually improved, mainly focusing on segments and product lines that meet real needs, have completed legal procedures and have value for exploitation and asset accumulation.
Mr. Phuong said that in the recorded transactions, there is the appearance of cash flow from investors in the North - which has been absent for more than a year. In particular, some suburban areas such as Long An and Dong Nai, which used to be "hot spots" in the South, now have quite good price reductions, so the reappearance of investors hunting for goods is not difficult to understand, especially in areas with strong infrastructure development.
Thanh Nam, a real estate broker in the South, said that recently, he has received many offers to find land from a group of investors in the North, because compared to the recent hot price increase of the Hanoi market, the South has more stable prices, even some places are still cutting losses. The problem is, the market when growing hot will sometimes slow down, even the price will go sideways or increase slowly, but the possibility of price increase in the South is still very large.
With the return of the Northern investor group this time, Mr. Nam said, they were more cautious than the previous period, aiming at products that meet the needs of housing, production - business and stable legal status. In terms of location, they focused on researching the areas of Long An, Binh Duong, Dong Nai and Ba Ria - Vung Tau . These are localities with good economic growth rates, with many infrastructure projects being strongly implemented.
Data from batdongsan.vn shows that the number of Hanoians searching for real estate in Ho Chi Minh City in November 2024 increased by 7% compared to January 2024. In addition, 66% of Hanoians surveyed are interested in real estate in the South. Suburban areas and satellite markets of Ho Chi Minh City are also of interest to real estate seekers from Hanoi.
The real estate types that Hanoi consumers are most interested in in the Southward trend are apartments, with 75% of Hanoi consumers choosing them. Next are townhouses/shophouses with 53%, land plots 53%, private houses/landed houses 39%, villas 29%, and resort real estate 28%.
Still in the exploration trend
Mr. Dinh Minh Tuan, Southern Regional Director of batdongsan.vn, said that from 2021 to the fourth quarter of 2024, Hanoians significantly reduced their search for investment opportunities in Ho Chi Minh City. Meanwhile, Ho Chi Minh City residents increased their search for real estate in Hanoi, with the level of interest recorded as 7.5 times higher in the period 2021 - 2024. This shows that the cash flow has remained in Hanoi for the past 3 years. While Hanoi's cash flow is still concentrated in the North, the Southern market is sluggish.
“The cash flow from Hanoi to Ho Chi Minh City is very clear in the fourth quarter of 2024. However, some investors believe that real estate prices in the city center are too high, while prices in the suburbs are relatively cheap, so they are still in an exploratory trend,” said Mr. Tuan.
Mr. Vo Hong Thang, Deputy General Director of DKRA Group, said that the demand of the real estate market in the South is showing many positive signs. In addition to the gradual return of investor confidence, the early entry into force of the Land Law 2024, Housing Law 2023, Real Estate Business Law 2023 and the continued maintenance of low lending interest rates are factors that positively affect market demand.
“Liquidity and selling prices in the secondary market are expected to continue to have positive changes due to the increasing demand for home purchases at the end of the year. It is forecasted that the apartment, townhouse and villa segments will have better supply as many projects are doing communication to prepare for sale. In particular, the supply is mainly concentrated in Ho Chi Minh City and Binh Duong,” Mr. Thang added.
In the first quarter of 2024, the real estate market growth in Ho Chi Minh City was still negative by 0.5%, but compared to the first quarter of 2023, it grew by 15.7%. In the first 6 months of 2024, the market grew positively again, reaching 2.94%. And in 9 months, the market continued to grow positively by 6.7%, reflected in real estate business revenue reaching 199,155 billion VND, accounting for 60.3% of total other service revenue in Ho Chi Minh City.
According to estimates by the Ho Chi Minh City Real Estate Association, in the first 11 months of 2024, the city's real estate could grow positively by around 9%, reflected in the total estimated revenue from other services reaching VND418,110 billion because real estate business revenue in the first 9 months accounted for 60.3% of total revenue from other services.
Source: https://baodautu.vn/batdongsan/xuat-hien-dong-tien-cua-nha-dau-tu-phia-bac-vao-dia-oc-phia-nam-d233805.html
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