Investment capital in real estate is returning to the South

Investment Capital Returning to the South: A Real Estate Revival

Mr. Lê Tấn Bình, a real estate investor from Hanoi, has recently returned to Ho Chi Minh City after nearly three years away. This decision was made after surveying the market and observing that property prices in many southern regions are currently lower than in the North.

According to Mr. Bình, Ho Chi Minh City’s real estate market is reentering the race after a period of stagnation caused by legal bottlenecks. He believes the city's housing potential remains significant, with ample room for growth, whether for living or rental purposes. Many large-scale projects are about to restart, and once procedural hurdles are cleared, a new growth cycle will begin.

Regarding satellite markets, Mr. Bình recalls that during his southern property hunt in 2020-2021, land prices in Bình Dương, Đồng Nai, and Bà Rịa-Vũng Tàu ranged from 18-30 million VND per square meter. Now, average prices in these areas have dropped to 16-25 million VND per square meter. Agricultural land with partial residential status is now priced at only 6-12 million VND per square meter, even in decent locations. For townhouses, which previously required at least 6-8 billion VND to secure a well-planned property, prices now range from 4-7 billion VND for desirable units in suburban urban areas.

"There are plenty of attractive options for investors in the southern real estate market right now," Mr. Bình noted.

Similarly, Mr. Trần Văn Chung, an investor from Hải Phòng, was also surprised by property prices in the South. He and a few friends recently purchased townhouses in a large-scale urban development project in Long An, where a 5x20 square meter unit cost just over 4.5 billion VND. Back in 2019, buying a townhouse in this area would have cost no less than 5 billion VND. Beyond the softer prices, developers are also more accommodating, offering completed legal paperwork, higher discounts, attractive loan interest rates, and much better payment terms than before.

Ms. Hồ Thu Trang, a real estate investor in Thủ Đức City, shared that she has been actively searching for landed housing projects in provincial markets in recent months. During her property hunts, she has noticed many northern investors returning to buy plots of land and apartments in Ho Chi Minh City and nearby provinces.

"The surge of policies addressing legal hurdles and clearing the path for real estate has boosted investor confidence, prompting their return to the markets in Ho Chi Minh City and its satellite areas," Ms. Trang remarked.

Southern Ho Chi Minh City Real Estate Market, December 2024 Photo: Quỳnh Trần

A recent report by Batdongsan revealed that in Q4 2024, the number of Hanoi investors searching for real estate in Ho Chi Minh City increased by 7% compared to the previous quarter. Meanwhile, the number of Ho Chi Minh City residents purchasing properties in Hanoi decreased by 12%.

The same report, surveying 2025 purchasing trends, indicated that 66% of Hanoi investors are now interested in opportunities in Ho Chi Minh City and its surrounding provinces. Additionally, nearly 80% of Ho Chi Minh City investors who had previously ventured into the northern market are returning to the South as the region’s real estate market shows signs of recovery.

Forecasts for the 2025 real estate market by Đất Xanh Services suggest that the southern region’s supply is rebounding and regaining its advantage. Of the more than 43,000 new residential products launched this year, Ho Chi Minh City and the southern provinces account for 36.2%, while the northern and central regions contribute 31.5% and 20.7%, respectively. This increased supply is expected to drive liquidity recovery, with absorption rates in the southern provinces projected to rise by 15-20% compared to last year.

Ms. Lê Thị Hằng, CEO of Indochine, highlighted that over the past year, real estate prices in Hanoi and northern provinces have risen too rapidly. Apartment prices have reached 35-85 million VND per square meter, increasing by 40-55%, while land prices in Hanoi range from 17-60 million VND per square meter. In contrast, apartment prices in Ho Chi Minh City and southern provinces range from 28-80 million VND, and land prices remain at 15-55 million VND per square meter. She noted that the northern market is no longer the easy playing field it once was, pushing capital to spread back to the South instead of concentrating solely in the North.

Mr. Võ Hồng Thắng, Deputy CEO of DKRA Group, shared that demand in the southern real estate market is showing positive signals. Many projects for apartments, townhouses, and land plots launched earlier this year in Ho Chi Minh City, Bình Dương, and Long An have reported absorption rates of 80-90%, with notable participation from northern investors. This indicates that purchasing power in the southern real estate market is recovering.

The early implementation of the revised Land Law, Housing Law, and Real Estate Business Law has helped resolve long-standing legal bottlenecks, paving the way for a breakthrough in supply for the city and surrounding provinces. With both central and local governments accelerating efforts to address challenges, trust among all stakeholders in the market is expected to strengthen in the near future.

Theo vnexpress.net