VietNamNet Bridge - Property projects in the southern and eastern parts of HCMC have attracted buyers from the north thanks to modern infrastructure items.

Real estate trading floors report that the number of buyers from the north accounts for a high proportion of total transactions, while the figure is expected to increase further in 2017.

A representative of a trading floor on Bui Vien Street in district 7 said buyers from Hanoi make up 30-50 percent of total transactions.

Le Hoang Chau, chair of the HCMC Real Estate Association, also commented that the dynamic HCMC real estate market is attractive in Hanoians. 

“The proportion of buyers from Hanoi is 30 percent on average, while it is much higher in high-end projects located in advantageous positions,” he said.

Asked why northern people like properties in the south, Nguyen Tho Tuyen, general director of Cen Group, said the profitability ratio of the Hanoi market is 2-3 percent lower than HCMC.

Tuyen noted that Hanoians began marching towards the south in 2008-2010. However, the movement stopped later as the real estate market fell into crisis. As the market has warmed up again, investors are eyeing the southern market.

Surveys by some market analysis firms show that high-end apartments in the central area of HCMC can bring profit of 8 percent per annum, while the figure is 2-4.5 percent only in Hanoi. 

Besides, there are more favorable conditions to do business in HCMC: high population, good infrastructure and high number of expats.

The real estate price in Hanoi has become too high. With VND1 billion, Hanoians cannot buy property in advantageous positions which can bring high profits. 

The southern region is blessed with good weather conditions which help attract domestic and foreign travelers. This promises high profits for accommodation service providers. 

Hanoians believe that if they buy houses and apartments there for lease, they would be able to make big profits.

The high demand from the north has prompted HCMC-based real estate developers to launch sale promotion campaigns in Hanoi.

In the first three quarters of 2016, Khang Dien, Novaland, Phu My Hung, VinaCapital and CapitaLand ran sale campaigns in Hanoi. The products covered a wide range, from villas to street-front houses to high-end apartments and resorts.

Meanwhile, Dat Xanh, Hung Thinh and Sacomreal have set up representative offices in Hanoi to access potential buyers. 

Sacomreal has signed a strategic cooperation contract with Maxland, a Hanoi-based real estate distributor, under which Maxland would help Sacomreal approach clients in the north.

Mai Thanh