“Investor Appetite” is Evolving: Unveiling the Shining Opportunities
For generations, real estate has been the preferred investment channel for Vietnamese. Shelter is one of the basic and indispensable needs of humans. With the deep-rooted belief in “settling down to focus on career,” people are not hesitant to pour money into real estate despite high land prices, considering it a safe and sustainable way to accumulate wealth.
Contrary to many people’s speculation that high prices would deter home buyers, the reality shows healthy liquidity in various projects. A representative from Cen Land, a real estate company, shared: “In the first six months of 2024, our company recorded 1,360 transactions with a turnover of more than 9,000 billion VND.” Similarly, according to a survey by Batdongsan.com.vn, most brokers assessed the absorption rate of newly launched projects as ranging from moderate (30%-60%) to very good (>80%).
A report from the General Statistics Office reveals a strong influx of FDI into the real estate market. As of August 31, the total registered foreign direct investment (FDI) into Vietnam reached 20.52 billion USD, an increase of over 8% compared to the same period last year. The four segments that benefit the most from foreign investment are industrial, retail, office, and residential real estate. Experts predict that industrial real estate will continue its sustainable growth due to Vietnam’s economic growth, attracting both domestic and foreign investors. This segment is becoming one of the shining spots in the real estate market.
Experts also suggest that investors’ preferences are evolving. Instead of short-term speculation for immediate profits, as seen in the previous period, investors are now shifting towards products that offer real value and high utility. In addition to incentives and sales policies, investors are also seeking projects with potential for both residential and operational purposes to ensure dual profits. Mr. Minh Tu, a Hanoi-based investor, shared: “After years of investing, I realized that rentable homes guarantee their actual value. So, I look for projects with excellent infrastructure and amenities to serve experts and high-quality laborers in industrial zones, who have good spending power and diverse entertainment needs.”
Mr. Tu also shared his experience: “To avoid capital being stuck or facing the worst risks, investors should also look for projects with sound legal procedures. Projects within industrial zones with planning permits and construction licenses give buyers peace of mind.”
With limited legally-compliant supply, Song Hong Diamond City stands out as a notable example in the Northern market, attracting investors’ attention. The project is valued for its dual functionality as a residence and a lucrative business opportunity.
Song Hong Diamond City: A Profitable Real Estate Venture and a Potential “Landing Spot”
Song Hong Diamond City (SHDC) is not just a typical real estate project but also holds immense dual development potential, making it a magnet for investors’ interest. With a diverse design offering shophouses, villas, and townhouses, SHDC allows for both residence and business ventures.
The project boasts a wide sidewalk, a spacious road, and an internal area that encompasses the largest agricultural product wholesale market in Northern Vietnam.
With the Song Hong Agricultural Product Market within its premises, SHDC experiences thousands of daily transactions, making its shophouses highly sought-after for commercial rental purposes. Mr. Nguyen Thanh Cong (37 years old), an investor in SHDC, shared: “The shophouses in SHDC are well-planned with spacious frontages, wide sidewalks, and internal roads ranging from 12-25m, allowing for diverse business models. The project also boasts a plethora of amenities for my family’s enjoyment, such as swimming pools, parks, and cafes, attracting people for weekend relaxation and entertainment.”
Additionally, many investors are turning to satellite cities to find new “landing spots” as land prices in Hanoi hit record highs. Mr. Bao Duy, a seasoned investor, shared: “In my opinion, this is the right time to invest in real estate for both residential and rental purposes. Instead of paying 70 million VND per square meter for a mid-range apartment in Hanoi, I think it’s wiser to invest in places with untapped potential and reasonable prices like Song Hong Diamond City. I can receive a steady monthly income from rentals, and as the infrastructure develops, property values will also increase over time. Soon, commuting to the city won’t be an issue with the upcoming Ring Road 4.”
A glimpse of the construction progress at the project site, viewed from the intersection of Road 379 and 382
Strategically located at the eastern gateway to the capital, SHDC boasts a prime location at the intersection of Road 379 and Road 382. From here, residents can easily access diverse amenities, including schools, hospitals, shopping malls, and urban areas such as Ecopark and Vinhomes Ocean Park. Additionally, the project facilitates seamless trade connections through Ring Road 4 and the Hanoi-Haiphong Expressway to key economic regions in the North, including Bac Ninh, Bac Giang, Haiphong, and Quang Ninh.
With its dual potential, SHDC (Song Hong Residential and Agricultural Product Market Project) fulfills the expectations of investors, explaining its rise in the market during this phase.
Kita Group Triumphs Again at the Dot Property Vietnam Awards 2024
On September 26, at the prestigious Dot Property Vietnam Awards 2024, KITA Group was named the winner in the highly coveted category of Best Housing Developer Vietnam 2024. This marks the second consecutive year that KITA Group has been recognized at the Dot Property Vietnam Awards, a testament to their unwavering commitment to excellence in the real estate industry.
“Prior to 2022, businesses paid approximately VND 100 billion in land use fees for a 10-hectare project, but this has now surged to VND 350 billion, and even up to VND 500 billion.”
Mr. Pham Duc Toan, CEO of EZ Property – a prominent real estate investment and development company, expresses his concern about certain localities’ land valuation methods. He believes that some areas base their land prices on data from real estate transactions that occurred during a heated market, resulting in significantly higher taxes for businesses.
The Art of the Property Deal: When “No Sale” Means a Price Hike
The trend of raising prices and selling more when the market is good has caught on in the southern market. This strategy has been increasingly employed by businesses in the region, who are quick to seize the opportunity to capitalize on favorable market conditions.
The Allure of Square Real Estate
Owning a shophouse or townhouse in the central square of the city has always been the top choice for seasoned real estate investors with strong financial backing.
The Rise and Rise of Thu Duc: How the Former Real Estate Giant is Now a Hot Market with New Condo Prices Soaring Above $100 Million per Square Meter
Although the housing supply in the East of Ho Chi Minh City remains higher than in other areas, there are significantly fewer projects compared to previous years. It is becoming increasingly difficult to find apartments priced at VND 50-60 million per square meter in this area.
