When the price of projects and land in Ho Chi Minh City is too high and profit margins are gettimg smaller, it is imperative that buyers look for investment opportunities in new suburban areas. According to experts, that is the natural law of the real estate market.
It is no coincidence that over the past few years, the real estate market in the neighboring provinces of Ho Chi Minh City has “overwhelmed” Ho Chi Minh City’s real estate. In addition to the story of scarce supply, good prices and profit margins are also factors that strongly promote the demand for searching real estate in nearby provinces.
According to Colliers Vietnam, individual investors are tending to invest in real estate from neighboring provinces such as Binh Duong, Dong Nai, and Long An instead of buying real estate in Ho Chi Minh City because of the ability to obtain higher capital gains.
Following the same trend, the Director of DKRA Vietnam R&D Department also said that the trend of buying to live or buying to invest in the periphery has actually developed nearly 10 years ago. According to his personal experience, in 2012, a project in Binh Duong, 13km from HCMC, attracted 60% of buyers who were working in HCMC. They accept a daily commute of approximately an hour to travel between the two cities, in return for a cheaper price and the opportunity to sell in the next 2-3 years also bring better profit.
Apartment projects of 30-35 million VND/m2 may be extinct in Ho Chi Minh City, but investors just need to go out of the city a bit, where there is no shortage of projects with this price, but even the quality of works and utilities is equal to, or even better, with many high-end Grade B projects and hence the liquidity is also better.
Records show that in recent years, real estate in provinces such as Binh Duong, Dong Nai or Long An has been increasingly sought after by real buyers and have become “net gold” for investors because their only principle is “water must flow to the valley”. The attractive price factor has made the suburban real estate segments more attractive to the majority of buyers.
According to a real estate business, when the price of projects in Ho Chi Minh City is too high, the profit margin is low, forcing buyers to look for investment opportunities in new suburban areas.
With 5 billion, buying a house in Ho Chi Minh City, the profit is only a few hundred million. But instead, buyers can invest a few thousand square meters in the suburbs in Dong Nai, Long An, or buy a few apartments within the same price range.
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