The Satellite City Real Estate Frenzy Near Tet: Unveiling the “Unusual” Investment Moves from the North.

Real Estate Investors Ramp Up Pre-Tet Property Launches

While Ho Chi Minh City thrives in the luxury apartment segment, its surrounding areas like Dong Nai, Binh Duong, Long An, and Can Tho hold a distinct advantage in large-scale urban real estate developments.

Well-appointed townhouses, villas, and bungalows priced between 8 and 20 billion VND each, located within master-planned urban areas with comprehensive amenities, continue to attract substantial investment. Notably, the recent surge in property acquisitions by investors from the North has invigorated this market segment.

Seizing the pre-Tet period, when demand tends to increase, several developers are focusing on releasing new properties into the market and are met with positive sales performance. However, the supply of urban real estate largely stems from existing projects, with new phases or zones being introduced.

For instance, Nam Long recently offered fully-built townhouses in the 170-hectare Izumi City urban area (Bien Hoa, Dong Nai), accompanied by attractive sales policies. Buyers who purchase and take ownership in the fourth quarter of 2024 will receive incentives worth up to 1.5 billion VND. With prices starting at 8 billion VND per unit, these ready-built townhouses in the urban area have attracted both end-users and investors. During a recent interaction with shareholders, Nam Long’s representative emphasized that this integrated urban development is expected to significantly contribute to the company’s revenue in 2025.

Meanwhile, in the western region, the developer introduced The Aqua riverfront mansions and Park Village canal-side mansions within the 355-hectare Waterpoint urban area. To stimulate demand, the company offered a Merry Fisher 895 yacht worth nearly 8 billion VND and a Mercedes GLC300 valued at almost 2.8 billion VND to home buyers. This strategy generated a positive response, especially from northern investors, as low-rise property supply and prices in Hanoi and Ho Chi Minh City have already reached high levels.

In Can Tho, the Nam Long II Central Lake project, spanning over 43 hectares, continues to launch townhouses and villas. This project has been a “game-changer” for the real estate market in the Southwest region during the pre-Tet period, contributing significantly to Nam Long’s sales performance (58%) in October and November 2024. Notably, the launch of the project’s land plots in September 2024 alone generated 528 billion VND in sales revenue. Some businesses anticipate that sales performance in 2025 will be bolstered by the release of subsequent phases of the project.

Investors Weighing Their Options

It is evident that the pricing and sales strategies for the townhouse, villa, and bungalow segment in areas surrounding Ho Chi Minh City are highly competitive compared to the city itself. The high prices and limited supply in the city have prompted buyers with disposable income to explore opportunities in neighboring areas. Recently, the influx of investments from the North into the real estate market surrounding Ho Chi Minh City reflects a trend of “getting ahead of the curve.”

When comparing low-rise properties in Hanoi and its suburbs with those in areas adjacent to Ho Chi Minh City, the latter offers significantly more room for growth due to more affordable price levels. Additionally, only a handful of developers with substantial land banks have consistently invested in amenities over the years. Now, with the formation of genuine housing demand and improved connectivity, profit margins for investors are expected to surge in the coming years.

According to industry experts, investors entering the market at a time when new laws are taking effect will have certain advantages. The “tipping point” for real estate price increases is forecasted to occur from the beginning of 2025 onwards. Therefore, opportunities for buyers remain relatively abundant.

In a recent sharing, Mr. Lucas Loh, CEO of Nam Long, opined that the Vietnamese real estate market is entering a mature phase. In this new era, alongside robust infrastructure development fueled by public investments such as metros, ring roads, and expressways, commuting from satellite cities to Ho Chi Minh City’s center will become more time-efficient. Consequently, the demand for housing is expected to shift towards peripheral regions, offering more affordable housing options and improved living environments. This trend aligns with the characteristics of all mega-cities worldwide.

It is evident that investors continue to channel their idle funds into various regions to seek profit margins, and their expectations are well-founded. Several southern regions are benefiting from continuous infrastructure expansion and exceptional FDI attraction capabilities.