Only a few years ago, information about the opening of real estate projects hardly appeared in suburban provinces, most of them are still active in two big centers such as Hanoi and Ho Chi Minh City. In addition, there are some traditional markets with advantages in other tourism activities such as Khanh Hoa, Da Nang ,etc. However, recently, new markets have been mentioned more thanks to centrifugal tendency.

When the land plot market in big cities is saturated and there is not much land fund to develop the project, the cash flow of investors is diverted to the provincial market. At the beginning, only a few people gathered the land, then the heat quickly spread, leading many other investors to join, massively hunting for project land in localities such as Vinh Phuc, Thai Nguyen and Bac Ninh. Quang Ninh, Bac Giang, even further are Lao Cai and Dien Bien, etc.

With relatively low investment costs, targeting these localities is no longer the purpose of catching up with the trend of infrastructure development and planning in the future, because these are all localities or have strengths in tourism, or there is a strong pace of economic development and urbanization. In recent years, transport infrastructure connecting to Hanoi has been developing, so the traveling between localities has become easier.

The tendency to look to new markets also made localities that were less popular in the “real estate heat map” of the former industry, and are now widely known. Bac Ninh, Lao Cai, Bac Giang, Hung Yen, Thai Nguyen, Vinh Phuc, Thanh Hoa, Ha Nam, Nghe An, etc are constantly mentioned in the report of the Real Estate Brokers Association.

Previously, the provincial projects were mainly small projects or land for service auction, land plot for sale, there have been many large enterprises such as Vingroup, Him Lam, KOSY Group, CEO Group, etc with projects from a few dozen to several hundred hectares. Not only developing land, local products are also more diversified with adjoining, shophouse, even high-rise apartment, etc.

According to the sharing of Mr. Nguyen Quoc Hiep, Chairman of the Board of Directors of Global Real Estate Investment Joint Stock Company (GP Invest), the strategy of drifting to the provincial market on the one hand helps businesses diversify their basket of goods, gain more products reach new customers and stand a chance to expand market share, increase brand identity.

On the other hand, the restriction on licensing new projects, in addition with the fact that the urban clean land fund in big cities is increasingly scarce makes investment opportunities in the traditional market decrease, investors have no way but accept to move to a remote area.

“In the provinces, investment procedures are easier, the locality is more open to calling for investment, transport infrastructure and utilities are also improving,” said Mr. Hiep, GP Invest itself shall also focus on investing a project in Viet Tri City, Phu Tho province having a size of 58.5 ha with adjacent villas, high-rise houses, etc.

Similarly, according to Mr. Nguyen Huu Duc, Sales Director of Protech Real Estate Joint Stock Company, the trend of “attacking” the provincial market is the inevitable trend, because of the development potential of markets. This is still very large, the profitability is also higher thanks to the soft price and growing infrastructure.

In addition, it is understandable for businesses to shift product structure to new lands, because according to the development trend, businesses cannot stand still, they must always explore and explore areas, potential land for your long-term strategy.

What do you notice when investing in real estate in the province?

According to KOSY Group’s leaders, in recent years, Hanoi real estate has moved, focusing on the western region, where infrastructure planning is very fast and complete. In the coming time, the spread of the real estate market shall be wider, towards far away areas of the city center. The reason is that the expansion of infrastructure such as Nhat Tan Bridge, Thanh Tri Bridge, the future is an urban railway, etc may allow real estate to develop further.

Although potential, but according to Kosy leadership, when investing in the provincial real estate market, investors should note that suburban projects are often large-scale, long development time, divided into stages. The paragraph, therefore, the investor’s potential is extremely important. The project may be divided into several stages, but if the financial health is not good, the investor shall not be able to go all the “long way”, so this is a special issue to be aware of. In particular, investors must have their own valuation of the investor, financial potential, experience in project development and operation, thereby making appropriate investment options.

In addition, technical issues such as connectivity, infrastructure inside and outside the project, or design, management and operation partners are also issues that need reference.

“For coastal real estate projects, infrastructure plays an important role in connecting and shortening the travel time of residents with the central area. In addition, the developed infrastructure shall help increase the value in that area, ”Mr. Dinh stressed, adding that the project development enterprises or secondary investors all have the common purpose of being profitable. With that goal, secondary investors always assume that profits are as much as possible. When there are rumors shall create investment opportunities, dragging many speculators into the race. If at the end the information is incorrect, the person who comes in later shall be at risk.

Therefore, from a customer perspective, with the provincial real estate market, buyers need to pay attention to the liquidity of the market due to the small size of the market, the tastes often focus on projects with a central location, near an existing residential area. Therefore, when investing, investors need to pay attention to these factors.

Also according to Mr. Nguyen Manh Khoi, Deputy Director of Housing and Real Estate Market Management Department (Ministry of Construction), when the apartment segment is “blocked”, many investors have chosen the foundation soil, because of the low investment rate low and high profitability. Projects in profitable areas (both for investors and secondary investors) have made a change in investment.

Besides the positive aspects, the recent time witnessed in the land plot segment surrounded the rumors, posing risks to the market. The appearance of inaccurate information clearly related to the planning, to the District, certain merger is partly from the state management agencies, local authorities. However, it is also partly because investors are too excited. Therefore, investors should avoid crowds to limit their risks.