Real estate investors are leaving the big cities?
Where is the vibrant suburban real estate?
In a recent report extracted from big data Propertyguru Vietnam, the interest in land plots in Hanoi and Ho Chi Minh City in the first quarter of this year decreased by 9% and 4% respectively compared to the same period last year. However, in the provinces, this number tends to increase.
Specifically, the level of interest in land plots in Dak Lak increased by 58%, Khanh Hoa 48%, Binh Thuan 44%, Hung Yen 15%, Quang Nam 14%. These are the localities that have been invested in synchronously, strongly developing industrial park chains, transport infrastructure and potential for tourism economic development (sea economy, nature)…
Particularly in Hanoi, areas with favorable conditions for development, synchronous investment infrastructure such as Hoai Duc, Dan Phuong, Dong Anh, Gia Lam districts … are “hunted” by investors. Residential land for sale in the first quarter of 2022 still increased simultaneously in the suburban districts of Hanoi such as Chuong My (up 74%), Quoc Oai (26%), Gia Lam (21%), Dong Anh (20%). ), Thach That 11%…
The trend of “leaving the city to go home” is encouraging the psychology of changing investment locations. Accordingly, currently, groups on social networks with such content are very popular and share the same message of leaving big cities and returning to the provinces to live comfortably and happily.
In the first quarter report of this year, the Ministry of Construction pointed out that real estate prices in the inner cities of Hanoi and Ho Chi Minh City continue to increase. This also contributes to promoting investment flows from big cities to provinces.
At the same time, the main reason is that the supply in the provinces is very abundant, not as scarce as in the big cities; That means investors have more options.
Land in the provinces attracts investors because the land fund is still large and the price is cheaper than in big cities. Photo: Dy Khoa.
Investors target land priced under 1 billion dong!
“It is not too difficult to understand when many investors choose real estate products in suburban areas. There are many reasons to explain this phenomenon. In which, much of it is because the selling price is still quite soft, in some areas there is still land valued at less than one billion dong. Investors think that liquidity in such plots will be better“, the director of a real estate company in Phan Thiet city (Binh Thuan province) asked to remain anonymous for comment. He added that the number of customers interested in local land (especially districts and towns that tourism potential) is increasing well.
“Our strength is having a variety of real estate prices for customers to choose from. However, many customers place requests to find plots of land with a price range of less than one billion dong. Many people just want to find land for 500-800 million VND. These customers mainly want to invest, wait for the price to increase and then sell“, added the director.
Mr. T. Minh, a real estate consultant in Ho Chi Minh City, agrees on the trend of investment shifting from urban to suburban real estate. “From the beginning of the year until now, customers choosing to invest in lands outside HCMC account for 70-80% of my total customers. They are most interested in provinces like Lam Dong and Long An.
Even the provinces of the Western region such as Can Tho and Kien Giang have also been noticed. Previously, these provinces received little attention from tourists in Ho Chi Minh City. Investors see positive signals about infrastructure investment plans and land prices are still acceptable, so they reverse the investment pole.“, Minh stated.
Expert Minh continued: “Some customers think that buying a piece of land in Saigon is equal to 2-3, even 4 pieces in the province. Why not invest in the province but stay in the city. My client is targeting people who want to leave the cities and return to the countryside to grow vegetables and fish. I predict that in the next few months, at least until the middle of 2023, the investment trend in the provinces will still be strong“. However, Mr. Minh did not give the possibility of profit when investing in land in the provinces compared to Ho Chi Minh City.
Real estate investors are investing in provinces that have the potential to exploit tourism or meet the trend of “leaving the city to go home” of a part of the people. Photo: Dy Khoa.
Land prices in the border area of Tay Ninh province with other provinces of the Kingdom of Cambodia have also increased recently. According to a longtime broker in Tay Ninh, land prices in the border communes of Tan Bien and Ben Cau (two localities with international border gates) have shown signs of increasing.
“The price increase is partly due to the fact that the border gates of the two sides have been operating smoothly, and the trading transactions between the two sides are gradually getting better“, this guy said.
He added: “A piece of land 5x24m (120m2) near Tan Lap market (Tan Bien district) is for sale for more than 300 million VND. This price has increased quite a bit compared to a few months ago“. Tan Lap market is less than 7km from Xa Mat international border gate. According to the land price list issued by the People’s Committee of Tay Ninh province from December 20, 2019, applied from 2020-2024, the land price in this area is more than 1,000. .000 VND/m2.
According to Mr. Dinh Minh Tuan, South region director of Batdongsan.com.vn, buyers of suburban land need to adhere to a number of rules to choose products with high liquidity. The most important is “water flowing in the valley”.
Accordingly, real estate prices will increase sharply in areas with rapid population growth, regional economic growth drivers or open infrastructure. Investors should avoid investing in land that is too isolated. Equally important, suburban real estate investors need to pay attention to liquidity when investing, legal transparency, and red book.
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
