Hanoian investors eye central real estate market

Due to the gloomy market, Hanoian investors are shifting to the central markets such as Da Nang and Nha Trang.
Nguyen Thi Thu, an investor in Hanoi said that with a capital of 1 billion dong, she aimed at Da Nang area. Some projects along with Da Nang-Hoi An route are in her eyes because land price here is only 4.5 million per sqm instead of 40-60 million dong/sqm in the big cities. “Infrastructure is going be stable and price is attractive, so I pour my money into the central region”, an investor shared.

Central and southern cities/provinces namely Nha Trang, Da Nang are attracting investors because these are also big cities after Hanoi and HCM City. They, moreover, are being built with good planning while land prices are much lower, another investor in Da Nang explained.

Furthermore, with the same capital amount, return on investment in Da Nang city will likely be higher than in Hanoi. He cited, if buying 100 sqm of ground land of a project in Da Nang at 500 million dong, the value will be increased to 600-700 million dong, even higher in one year later. Meanwhile, with 500 million dong, investors will be very hard to buy a lot of land in Hanoi.

Land price in Da Nang has grown 40-300% rapidly the last 3 years and tended to go up because more and more investors pay attention and pour investment capital into central and southern provinces/cities.

A study of CBRE, a realty consulting firm showed that Da Nang led in terms of attractiveness for investors who are interested in resort real estate segment. Especially up to 80% of the investors come from Hanoi. Following Da Nang are projects in Phan Thiet, Mui Ne, Long Hai, Vung Tau and Phu Quoc, that are beautiful coastal areas.

96% of several projects namely The Ocean Villas-Danang Beach Resort were sold successfully. Among these, 80% of buyers are from Hanoi.

According to Dang Hung Vo, Senior Advisor of Ministry of Natural Resources and Environment, while Hanoi’s realtor market falls in the gloomy situation, investors probably are seeking higher profitable areas. Central provinces are promising land because of low prices, good planning but these are also hidden risks for the amateur investors. – Vietbiz24

Tags: Vietnam Property market, Vietnam property sector, vietnam real estate market