Capital Investment Shifts South in Real Estate Market

According to a report by Batdongsan.com.vn, investors from the North dominate the property search in Ho Chi Minh City, with Hanoi accounting for 33%, Hai Phong and Nam Dinh at 24% each, and Quang Ninh at 10%. In the first six months of the year, 75% of property seekers in Ho Chi Minh City were from other provinces, with 61% hailing from the North.

Rushing to Buy Properties

Similarly, the Market Research and Customer Insight Center of One Mount Group recorded that over 50% of Hanoi residents intend to purchase property in Ho Chi Minh City, with approximately 20% ready to make immediate purchases. This highlights the growing trend of “Southern migration” among investors.

A survey by reporters from the Labor Newspaper in the Vinhomes Grand Park area (Ho Chi Minh City) revealed that numerous apartments have been booked by Hanoi buyers in just a few weeks. Mr. Q. Hung, a real estate agent in Ho Chi Minh City, stated, “In one month, I sold at least 10 units, mostly to Hanoi buyers. Many only need to see videos and documents; if the price is right, they transfer the deposit immediately.” According to Mr. Hung, the most sought-after units are 2-3 bedroom apartments priced under VND 3.5 billion or 2-bedroom units under VND 2 billion. “Due to high demand, some sellers change their minds or raise prices by VND 200-300 million after a quick sale, causing some transactions to fall through,” he added.

Ms. Huyen Thanh, another agent in the same area, confirmed the surge in Hanoi buyers: “Many units I couldn’t sell for a year were snapped up by Hanoi buyers in just two weeks. They even accept higher prices without negotiation.” Ms. Thanh noted that many Northern investors place deposits of VND 200-300 million and resell within 30-45 days if someone offers VND 150-200 million more, rather than waiting for notarization. “Hanoi buyers act fast, flip quickly, and sell as soon as they profit,” she said.

A similar trend is observed in Phu My Hung (former District 7), where remaining units are quickly purchased by Hanoi buyers. Mr. Hoang Sang, an agent there, shared, “Some Ho Chi Minh City buyers were still inquiring about loans when others secured the units. Many Hanoi buyers transfer VND 500 million deposits without even viewing the property.”

Ms. Hoang Thu, a Hanoi-based agent selling 10 units in a Ho Chi Minh City project, all purchased by her regular clients, said, “Within two days of listing, four units were booked. Buyers aim to rent them out for cash flow and potential price increases.” Meanwhile, Ms. Nguyen Huong, a long-term Hanoi investor, believes Ho Chi Minh City remains attractive. “Prices here are more reasonable than in Hanoi, developers are reputable, and rental yields are good. I bought a 2-bedroom apartment in former District 4 for over VND 3 billion, now worth double, plus annual rent of over VND 200 million,” she said.

Need to Control Speculation and Price Inflation

According to Mr. Tran Minh Tien, Director of the Market Research and Customer Insight Center at One Mount Group, many Ho Chi Minh City projects sell out on launch day, especially those with clear legal status and prime locations. As Hanoi prices rise, investors shift to Ho Chi Minh City, where growth potential remains.”

Mr. Ta Trung Kien, Deputy General Director of Viet A Real Estate Company, explained that this trend is not new but a continuation of investment waves following major developers like Vingroup, Sun Group, T&T Group, and EcoPark from the North to the South. “When reputable developers launch projects, loyal Hanoi customers follow. They profit, reinvest, and create a continuous cycle,” he said. However, Mr. Kien warned, “Northern investors often buy in bulk, drive prices up, and exit quickly. Their speculation forces end-users to buy at higher prices.”

Dr. Pham Viet Thuan, Director of the Institute of Natural Resources and Environment Economics, attributed the “Southern migration” to harsher weather and post-flood psychology. “As conditions worsen, many relocate to the South for better living and investment. Increased demand and limited supply drive prices up. To cool the market, stricter credit policies are needed, especially limiting second and third home loans to curb speculation,” he suggested.

Ms. Giang Huynh, Director of Savills Ho Chi Minh City Research Department, agreed that controlling prices and speculation requires not only tighter credit but also increased supply. “Streamlining project approvals, resolving legal issues, and accelerating implementation are crucial. With more affordable housing, prices will stabilize,” she said. Additionally, she emphasized the long-term goal of “income growth matching or exceeding housing price increases” to ensure housing accessibility, especially for middle and low-income groups.