The Real Estate Shark’s Hunt for Untapped Terrains

One of the most prominent signs highlighted at the Vietnam Real Estate Conference, VRES 2024, was the indication that “capital is seeking opportunities in the south after a period of concentration in Hanoi.” This was evident as the number of people from Hanoi interested in Ho Chi Minh City real estate increased by 7% on search engines. However, most investors are still hesitant to commit, expressing concerns about their unfamiliarity with the southern market, legal issues, high property prices, and doubts about potential growth. So, where is the “blue ocean” truly located?

A broker, Ms. Hoa, at the Centa VSIP mega-city caused a stir with a transaction of ten shophouses being snapped up by a “shark” investor all at once last November. Ms. Hoa shared, “The market in Tu Son has been vibrant since September this year, and as we near the end of the year, it’s even more bustling, a positive sign for well-prepared projects. Large investors are showing a keen interest in products with clear legalities, prices ranging below VND 50 million per square meter, and located within a 10-15km radius from the center of Hanoi. With a long-term vision, they prioritize well-planned and high-quality projects.”

Centa Riverside, a well-planned project offering a quality living space, is located just 12km from Hanoi

Benefitting from Public and Private Investments

According to the report on public investment disbursement for the first ten months of 2024, Hanoi achieved 42%, double that of Ho Chi Minh City, which stood at only 22%. The northeastern region of Hanoi has benefited the most from prominent infrastructure projects such as the Nhat Tan Bridge, Vo Nguyen Giap Street, Ring Road 3, Ring Road 4, metro lines, and the Hanoi-Ha Long highway. These projects have significantly reduced travel time, enhanced connectivity, and provided a boost for regional linkage and economic development.

Large-scale projects, spanning hundreds of hectares, are gradually emerging in areas not too far from Hanoi’s center, such as Dong Anh, Hoa Lac, and even extending to neighboring provinces like Bac Ninh, Vinh Phuc, and Hung Yen. This expansion is not merely a territorial growth but a strategic move by “shark” investors to reshape the market and uncover new, promising hotspots, turning these areas into a “blue ocean” brimming with opportunities. It promises breakthrough profits in the long-term, sustainable investment race.

A newly planned and integrated urban area

Striking a Balance Between Sustainable Value and Breakthrough Profits

The “blue ocean” narrative is attracting strong interest from investors as the real estate market enters a phase of restructuring and seeks a balance between sustainable value and breakthrough profits. Sustainable value lies in the long-term vision and responsibility of investors who choose well-planned urban areas with quality living spaces over the “red alert” situation of land and private housing in terms of ensuring a quality lifestyle. Apartments also provide an opportunity for individuals to own homes, but currently, prices in the city center are no longer reasonable, and the growth space is limited.

Particularly, real estate in Hanoi’s northeast region has seen a significant increase in value due to its proximity to large manufacturing enterprises, creating a stable supply and demand for housing for laborers and experts. These urban areas also offer a feasible solution to enhance the quality of life for inner-city residents who are facing infrastructure overload. The gradual formation of a convenient system is attracting a residential community, generating growth value for this region.

While the inner city of Hanoi has almost no room for growth, the suburbs, especially the northeast region, are opening up potential investment opportunities. The synergy between well-planned urban development, improved transportation infrastructure, and a high-quality lifestyle has transformed this area into a “blue ocean” for both homebuyers and investors.