After Hanoi, real estate 'fever' spreads to suburban provinces

Since the beginning of 2024, Hanoi real estate has been continuously heating up in most segments as new price levels have been continuously established. The "fever" phenomenon has not only occurred in the central area but also in the suburban district markets. Land auctions in suburban districts have continuously set new records for winning prices, pushing up land prices in surrounding areas.

Mr. Le Dinh Chung, General Director of SGO Homes Real Estate Investment and Development Joint Stock Company, commented that when Hanoi real estate prices increase, investment demand will not increase sharply in the near future.

Currently, customers with 5-10 billion VND in hand have almost no opportunity to invest in the Hanoi market.

According to his observation, from May onwards, the cash flow trend is to "flow" into the suburban provinces of Hanoi such as: Bac Ninh, Bac Giang, Hung Yen, Hai Duong... Regarding the provincial market, Mr. Chung believes that land plots will recover because after all, this is still the general taste of the market.

With the shift to the suburbs, the real estate supply in these areas will become more diverse, from land, apartments to townhouses and villas. This gives investors more options and is suitable for the diverse needs of the market.

Despite the investment shift, real estate prices in suburban areas are expected to increase but remain at a reasonable level compared to central areas. This stability will attract more investors.

" The shift of investment to suburban areas in the second half of 2024 is an inevitable trend due to factors such as prices, legal regulations and infrastructure development. Suburban areas have the potential for more sustainable development thanks to synchronous planning and infrastructure development. This not only helps increase real estate value but also improves the quality of life of residents, " Mr. Chung shared.

Real estate in the provinces is expected to attract investment capital. (Illustration photo).

Sharing the same view, Mr. Le Xuan Nga, General Director of BHS Real Estate Company, also said that recently, real estate prices in Hanoi have increased too strongly because the cash flow is too concentrated in the inner city, not flowing out.

According to Mr. Nga, the game in Hanoi will be very fierce for investors and is only for big investors with investment budgets of 15 billion or more. Smaller budget investors will find ways to move to other provinces and other regions. Therefore, sooner or later, the cash flow will flow out of Hanoi, maybe at the end of 2024 or early 2025. This is also what happened in previous real estate cycles.

Mr. Nga also acknowledged that the shift in cash flow will help real estate projects in other localities to be constructed and completed, creating infrastructure for new lands, thereby helping the local economy develop.

Mr. Nguyen Quang Huy - CEO of the Faculty of Finance and Banking, Nguyen Trai University (NTU) also said that the escalating real estate prices in Hanoi have caused many investors and buyers to shift their search for opportunities in neighboring provinces such as Ha Nam, Ninh Binh, Bac Ninh, Bac Giang, Hung Yen, Hai Duong, Hai Phong, Thai Nguyen and Vinh Phuc.

These are areas with strong development in industry, services, tourism, and a synchronous and modern investment in transport infrastructure. With reasonable prices, these neighboring provinces not only attract investors but also create conditions for people to stabilize their lives and work locally, instead of having to bear the pressure of high living costs in Hanoi.

This also contributes to the formation of satellite cities, creating a new living and working trend: People are no longer too dependent on Hanoi, but can settle down in places with good living conditions and similar career development potential.

However, according to Mr. Huy, despite the great potential, when investing in this area, investors need to pay attention to learning about the infrastructure, planning and legal aspects of the locality. Synchronous infrastructure and stable planning will help ensure sustainable growth in real estate value.

In addition, avoid speculating in areas that show signs of rapid price increases. This not only helps minimize liquidity risks but also ensures financial security.

Investors also need to choose the right time to invest, avoiding unpredictable market fluctuations.

" You should choose projects with transparent legal status, reputable investors, and full infrastructure such as parks, shopping centers, healthcare, and education. This will be an important factor to help increase profit potential and long-term residential value. In the case of using loans, it is necessary to ensure that the loan ratio does not exceed 50% of income, to avoid financial pressure and risks in case of economic fluctuations, " Mr. Huy advised.

Chau Anh

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