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Real estate investors are more open than Hanoi

Real estate investors are more open than Hanoi

Differences of investors in Hanoi and Ho Chi Minh City revealed clearly in the habit of using loans, choosing real estate products.

Duong Duc Hien, director of the Savills Housing Business Unit in Hanoi, points out the differences in the real estate market in Hanoi and Ho Chi Minh City, which are characterized by socio- economy, culture.

According to him, while northerners tend to buy houses for long-term assets, businesses and investors in the South often have a business habits and consumption more open.

For example, if ten years ago the Saigon people were accustomed to buying bank loans in Hanoi, there were not many immediate buyers who needed leverage. Hanoi people  often buy houses in their available financial capacity instead of choosing properties beyond their affordability. This habit expresses the ideals of Hanoian’s safety and has only changed in recent years as homebuyers have learned more about financial leverage, the benefits of bank loans to buy a home and how to use the loan effectively.

Northern real estate investors
Northern real estate investors did not have the habit of using bank loans to buy houses.

He also made a difference that the idea did not appreciate the Hanoi apartment building in previous years. In the past 5-10 years, northern customers have only known two concepts of products on the market: “real estate” (real estate with attached assets) and collective housing. And, of course, they have more loving home-mindedness.

“It took a long time for the capital’s customers to get acquainted with and understand the value of the apartment model, especially the high-rise apartment building,” said Hien, pointing out that for a long time, The Hanoi market is focused on developing low-rise projects and the apartment segment has only really flourished in the last four years.

In contrast, the housing market in HCM City, the expert said, has long been developing parallel, low-rise and high-rise segments. This fact is partly due to the more modern concept of customers in the South and more and more international brands entering the Vietnamese market choose Ho Chi Minh as the first destination instead of Hanoi.

According to Hien, Ho Chi Minh City has always been at the forefront of a number of trends, such as expanding investment in new areas in the city, renovating products in combination with utilities, The school in Hanoi has been studying, applying. However, he said that the capital of Hanoi has its own direction because of its unique characteristics such as cultural factors and conservation should be limited to height ….

He also pointed out some differences in the two markets in 2017. HCMC housing market has moved ahead of Hanoi in the segment of cheap housing. The number of large commercial condominium projects is bigger with more active participation from developers, and the product has also been improved in terms of quality to attract customers, with the exception of cheap to go with low quality in the past.

“Hanoi seems to be moving a step behind HCMC as the housing market is only more active in the past year with some information on the involvement of large developers in this segment,” Savills said.

beautiful apartment
Hanoi seems to be moving a step behind HCMC

In addition, according to him in 2017, land segment in Ho Chi Minh City also recorded good performance. Meanwhile, this segment has not really been noticed in Hanoi because the market is focusing on other products such as apartments, villas and townhouses in the inner city, the supply is still abundant.

Pointing out the differences, he concludes, it is difficult to expect a common direction for both Hanoi and Ho Chi Minh.

“There is no denying that the housing market in HCM City has advantages and often leads the trend, which is the point that customers and investors in the Hanoi market should pay attention,” he said.

According to Savills experts, investors in the North may choose to invest in projects in HCM City if there are more favorable factors that are more suitable for investment purposes than those of other projects. Hanoi market. Investors can learn more advanced trends in the HCM City housing market to apply to projects in Hanoi such as developing in a way that is consistent and consistent in order to ensure the quality of products and services. … help to welcome better.

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