Highly professional southern real estate firms are heading north, attracted by the residential property market in Hanoi where demand exceeded supply, said Nguyen Tran Nam, Deputy Minister of Construction.
Nam said the real estate market in Hanoi has an unsatisfied demand for apartments and houses, made worse by the fact 800 apartment and house projects have been placed on hold until the capital's 10-year urban development plan is completed.
Southern trademark real estate firms see great potential in Hanoi where similar brands were lacking and real estate projects being developed by companies that were former State-owned enterprises.
Marketing and sales activities in the real estate market are not strong in Hanoi, he said.
One of those heading north is the Green Land Group, which has launched its Northern Green Land Real Estate and Service Joint Stock Company in Hanoi.
"Property enterprises in Hanoi have ignored the property segment for low-income people," said Luong Tri Thin, Green Land Group general director.
The expansion of Hanoi in 2008 brought many opportunities for developing urban projects, Thin said, adding however, there are many differences in development and the business culture between Hanoi and HCM City that had to be overcome.
Customers in the north are not so open-minded, which makes contact with them difficult and requires a period of education and the use of the local workforce.
Nguyen Do Viet, deputy director of the Song Da Thang Long Joint Stock Company, said the answer to that problem is for southern companies to cooperate with northern partners, initially.
"The experiences of northern firms would be useful," Viet said "Meanwhile, the northern firms will have to improve their operations and business methods to compete against southern rivals which have professional operations," Viet said.
Another firm to see the potential in the north was the HimLam Land Trading Corporation.
The HimLam Land Real Estate Trading Floor in Hanoi opened in May and sold around 20 apartments in the company's Him Lam Riverside resident apartment project, said Nguyen Ngoc Thuy, HimLam Land general director.
Marc Townsend, CB Richard Ellis Company Ltd managing director, said foreign investors who went to HCM City first would move investment to Hanoi .
Hanoi has potential and is a good investment opportunity for foreign investors, Townsend said./.
Nam said the real estate market in Hanoi has an unsatisfied demand for apartments and houses, made worse by the fact 800 apartment and house projects have been placed on hold until the capital's 10-year urban development plan is completed.
Southern trademark real estate firms see great potential in Hanoi where similar brands were lacking and real estate projects being developed by companies that were former State-owned enterprises.
Marketing and sales activities in the real estate market are not strong in Hanoi, he said.
One of those heading north is the Green Land Group, which has launched its Northern Green Land Real Estate and Service Joint Stock Company in Hanoi.
"Property enterprises in Hanoi have ignored the property segment for low-income people," said Luong Tri Thin, Green Land Group general director.
The expansion of Hanoi in 2008 brought many opportunities for developing urban projects, Thin said, adding however, there are many differences in development and the business culture between Hanoi and HCM City that had to be overcome.
Customers in the north are not so open-minded, which makes contact with them difficult and requires a period of education and the use of the local workforce.
Nguyen Do Viet, deputy director of the Song Da Thang Long Joint Stock Company, said the answer to that problem is for southern companies to cooperate with northern partners, initially.
"The experiences of northern firms would be useful," Viet said "Meanwhile, the northern firms will have to improve their operations and business methods to compete against southern rivals which have professional operations," Viet said.
Another firm to see the potential in the north was the HimLam Land Trading Corporation.
The HimLam Land Real Estate Trading Floor in Hanoi opened in May and sold around 20 apartments in the company's Him Lam Riverside resident apartment project, said Nguyen Ngoc Thuy, HimLam Land general director.
Marc Townsend, CB Richard Ellis Company Ltd managing director, said foreign investors who went to HCM City first would move investment to Hanoi .
Hanoi has potential and is a good investment opportunity for foreign investors, Townsend said./.
