After the land hot status, how is the real estate market in the Northeast provinces at the end of this year?



According to the Vietnam Real Estate Brokers Association, at the end of 2019, the real estate market in provinces like Bac Giang, Bac Ninh, Hung Yen, Vinh Phuc, Quang Ninh... is still exciting, not only the segment of land plots attracts visitors but also apartments are now thriving in many areas.


According to Mr. Nguyen Van Dinh - Vice Chairman of Vietnam Real Estate Brokers Association, in the past few years, the Northeast has been emerging as a potential real estate market, with full advantages of tourism and services. and industry, becoming the promised land for real estate investors.


Mr. Dinh said, from 2018, the real estate market in the North, especially in the Northeast, has witnessed rapid growth in provinces such as Bac Giang, Bac Ninh, Hung Yen, Vinh Phuc, Quang Ninh... These are "hot spots" of the Northern Real Estate Market when many real estate giants simultaneously poured capital to explore Real Estate with potentials for business, trade and tourism.


"Recently, in big cities like Hanoi, Ho Chi Minh City... the land fund is not much, the land price is many times higher than neighboring areas, so real estate investors have decided planning to find opportunities in new lands, great potential and many development advantages", Mr. Dinh emphasized.


According to Mr. Dinh, after the hot period land at the end of 2018 and early 2019 in many areas, the real estate price in the Northeast markets has increased significantly, there are areas that double or triple the price compared to the previous 5-year period. Currently, the market has passed the status and is at a stable time.


"The Northeast region is considered to be the axis of the East-West economic corridor linking Guangzhou - China with Vietnamese seaports planned to develop transport, urban and industrial infrastructures. Besides, This is a region with a large population, a large number of immigrants from other regions who come to work and live every year, which are attractive factors for industrial development, creating leverage to boost the real estate market", Mr. Dinh said.


Many apartment projects are springing up in industrial capitals.


According to Mr. Dinh, besides the segment of land plots and ground houses, the Northeast Real Estate market, especially industrial capital such as Bac Giang, has started to appear a series of new real estate products such as common houses. apartments, offices, commercial centers, hotels... and especially high-class serviced apartments.


In Bac Giang, Apec Aqua Park high-class apartment project invested by Apec Group is located in an area of 8927m2 on Nguyen Van Cu street, arterial road, the center of Bac Giang. The project owns a chain of commercial center, shophouse, international kindergarten, spa, gym, meditation garden, infinity pool, sky bar... These two apartment towers will be Swiss Spirit Hospitality - The world's leading brand in hotel management and operation.


Each apartment here costs from 700 million - 1 billion. Some serviced apartments at the project are guaranteed 10%/year for 5 or 10 years. With a total investment of more than VND 1,600 billion, after completion, the project will provide about 1,000 luxury apartments to the market. Apec Aqua Park is expected to solve the problem of lack of luxury apartments for foreign experts working in Bac Giang.


In addition to Apec Group, a series of other investors have quickly built houses for foreign experts such as Him Lam Land with Him Lam Green Park, Bach Viet with Areca Garden apartment projects, the Group Progress with Green City apartment project... Especially among the 6 projects that FLC is planning in Bac Giang, there is also a high-class apartment project.


It is known that, with high demand while the supply is only at a small level, the liquidity of apartment segment in the Northeast provinces with large industrial potential is always high. According to the real estate transaction market report of Vietnam Real Estate Brokers Association 2018, the sales of apartments and land plots in Bac Giang always achieved liquidity of over 60% of the number of launches.


"Despite that, the majority of apartments in the mid-end segment and high-end projects in Bac Giang are still relatively scarce", said the Vietnam Real Estate Brokers Association's 2018 market report.


According to experts, the home segment for foreign experts is extremely potential, especially with the apartment segment. In terms of investment rate, if buying a 2-bedroom apartment worth about VND 3 billion - VND 3.2 billion in Hanoi can be rented at VND 15 million/month, the investment value falls within 5.5% - 6%/year. For Bac Giang market, the purchase price of apartments is only about 1/3, fluctuating around 1 billion VND, but it can be rented up to around 10 million VND/month, profits are much higher.


However, experts also believe that apartments near industrial parks are having high liquidity, good rental rates, showing quite attractive investment opportunities. However, this is also a niche market that requires the resonance of many factors. There are at least 4 conditions for an apartment project to be rented to a foreign expert near an industrial park to be successful.


Firstly, the infrastructure and utilities around the project must be closed and complete. Secondly, security and management services, operating within the project, must be very good. Thirdly, the apartment is built with high quality, designed and furnished in a methodical manner, with the tastes of foreign experts. Fourthly, the project must have a good connection with large-scale industrial zones - clusters, abundant demand for management of foreign managers and experts, to ensure the output for investorst to buy an apartment for rent.


According to Nhat Nam