FLC Grand Hotel Quy Nhon in Binh Dinh province (Photo courtesy to FLC Group)
Hanoi (VNS/VNA) - There is a trend of real estate developers moving theirinvestments from big cities of Hanoi and Ho Chi Minh City to other localities,experts have said.
Speakingat a conference on property in 2021 and the rise of new markets held in thecentral province of Binh Dinh on September 26, Nguyen Van Dinh,deputy general secretary of the Vietnam RealEstate Association (VNREA) said a wave of investment in real estate projects inprovinces has become more intense in the past few years.
Inthe past, big cities were considered “golden land” and the first choicefor big real estate developers. Now, more and more businesses areturning to invest and explore new lands.
Thereason is that property products in the cities, such as villas and resorts, areincreasingly scarce. Property markets in the two cities are lacking landfunds, with few products for investment.
“Asfor apartment products, Hanoi is not profitable because the apartment pricehas reached its peak. Currently, buyers mainly have demand for accommodation,not for business,” Dinhsaid.
InHCM City, in the past two years, there have been no new projects completed.Apartment prices have been increasing sharply at an average of 5-7 percent,even 10 percent in some areas. In essence, investors will pour money into a marketwith good profitability and low prices.
“Thiswas why new markets see strong economic development, including advantagesin industrial development and the tourism sector. Excluding areas thathave developed tourism real estate, such as Da Nang, NhaTrang and Quang Ninh, the new markets forthe tourism industry are the localities that in recent years have takenadvantage of beautiful landscapes and good natural conditions, such asThanh Hoa, Nghe An, Quang Binh and Binh Dinh. We agree that these are the addressesthat see new markets,” he added.
Forthese new markets, he said there were many advantages such as open policies,attracting many investors to pour money into industrial development projects,infrastructure and tourism.
Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn said the statisticshave reflected the trend of more interest from investors in new markets.
Earlier,the real estate information searches mainly focused on Hanoi and HCM City. However, in the past twoyears, searches in other markets have started to increase significantly. Forexample, in Quy Nhon (Binh Dinh), the number of searches from the secondquarter of 2020 compared to the previous quarter increased by 30 percent.
Tran Du Lich, a member of Prime Minister Nguyen Xuan Phuc Economic Advisory Council, said there aretwo reasons for the move, because localities like Binh Dinh, Thanh Hoa and Quang Binh are developing quickly.
“Majorreal estate projects have opened up opportunities for many investors. Thisshowed that the emerging market can not rise without pioneering projects andinvestors,” Lich said.
Headded that Binh Dinh province, for example, has paidattention to transport infrastructure in recent years, thus becoming animportant factor in attracting investment in the property sector.
Nguyen Tuan Thanh, vice chairman of the People’sCommittee of Binh Dinh province, said they have been active inplanning to attract investments in many sectors, including real estate.
“We also focus on investing in connecting andbuilding infrastructure. In the past 10 years, Binh Dinh has invested in infrastructure,including airports that are welcoming 10 flights a day for both domestic andforeign tourists, along with a seaport, North-South railway and roads,” hesaid.
Thevice chairman said the locality has opened a number of coastal roads connectingQuy Nhon with other localities tocontribute to development of urban infrastructure and tourism. Binh Dinh has attached great importance to urbanand ecological environment development.
Improvingthe lives and quality of life for people is one of the reasons why the province is luring investment fromdevelopers./.
