Is the wave of 'offshore' real estate investment returning?

Potential direction

"The viewpoint in investment in general, real estate investment in particular, is to prioritize profit potential over geographical location", this is the common opinion of many investors as well as real estate brokers in Hai Duong.

According to Ms. Nguyen Thi Thoa, Director of Hai Duong Office of CLand Real Estate Investment and Trading Joint Stock Company (58 Hai Hung, EcoRivers urban area, Hai Duong city), the profit potential of real estate depends on many factors, but the most important are the "peak price" and the development of the surrounding area.

In Hai Duong, pre-built houses are an attractive real estate segment. However, the price of this type of product is not cheap. With an alley width of 2.5 - 3 m (meaning cars can enter), a pre-built house has an average area of ​​40 m²with 3-4 bedrooms, 2-3 bathrooms, 1 living room, the common transaction price is from 2.5 - 2.8 billion VND/unit. Some beautiful locations due to being close to the new urban area have prices from 3.2 - 3.5 billion VND/unit.

With project real estate, in some projects such as Trai Bau, Tan Phu Hung, Ngoc Chau, the common transaction price is at 47 - 55 million VND/m2.^2,, lots in good locations can cost up to 60 million VND/m2²This price increases from 2 - 5 million VND/m²depending on location compared to the end of 2024.

Regarding commercial apartments, Hai Duong does not have many products in this segment. At Hai Dang apartment complex (The Lighthouse Residences, EcoRivers urban area), the selling price of the smallest apartment is about 30 m²(studio apartment with 1 bedroom, 1 bathroom) is priced at 1.5 billion VND. Other apartments range from 2.7 - 3.3 billion VND/apartment depending on area and floor location.

“With this price, it can be said that the Hai Duong real estate market is approaching its peak, at least at the present time. It is difficult to say when the new peak will be established, so real estate in other provinces and cities with a large profit margin will clearly be attractive,” Ms. Thoa analyzed.

Sharing the same view, Mr. Nguyen Van Dinh, a young real estate investor born in 1995, in Hong Hung commune (Gia Loc) said that currently, real estate in some areas of Bac Ninh, Bac Giang, Hung Yen, Hoa Binh, Dong Nai, Da Nang has great appeal. “These are areas with many projects to develop airports, urban areas, industrial parks or resort tourism. If we consider real estate in the same district, the Hai Duong market is currently the least attractive in terms of price, second is in terms of nearby amenities,” said Mr. Dinh.

Mr. Dinh gave an example, in Hung Yen, a plot of land larger than 100 m², frontage from 4 - 5 m, next to an industrial park, priced at 630 million VND. Meanwhile, in Hai Duong, a similar lot can cost more than double.

Some investors are exploring the Thanh Hoa market. “Real estate here is still cheap, sometimes less than 50 million VND for a 120 m2 residential plot.², but the short-term profit potential is low. Because the investment land fund is still large, and the locality is often affected by storms, the attractiveness is not high, we need to wait for more market signals," Mr. Dinh added.

Legality is the key factor

Talking about the high price of real estate in Hai Duong, one of the reasons pointed out by investors is the relatively large number of brokers and investors.

A real estate broker in Hai Duong City shared: “Previously, in a group of land brokers, whoever had money to invest would register the papers themselves, buy and sell by themselves. Now it is different, if they see a plot of land or apartment with potential, the whole group of brokers will invest together, sharing profits corresponding to the capital contribution ratio. From there, these brokers will find ways to push up real estate prices to benefit.”

Although investment brokers are everywhere, according to the above broker, Hai Duong is the area where this force is concentrated the most. Therefore, real estate prices in Hai Duong are also higher than other places.

Wherever is attractive, there is money. Therefore, it is not difficult to understand why real estate investors in the province, including remittances from countries such as Germany, Japan, Taiwan (China) that used to pour into Hai Duong real estate, are now shifting to many markets outside the province.

With nearly 3 billion VND in spare money, Mr. Nguyen Van Hung in Nhi Chau ward (Hai Duong city) and some friends have just gone to Hanoi to buy an apartment. "Apartment prices in Hanoi are decreasing slightly. I want to buy an apartment because in a few years, my child will go to Hanoi to study at university. If I can't find an apartment, I will look to buy an apartment. In Hanoi, there are currently many apartments for sale that are over 30 m2.², built from 4 to 5 floors, each apartment has about 4-5 rooms. Suppose my child lives in 1 room, the rest is rented to the children of acquaintances, we still have extra income, and feel more secure than renting in mini apartment buildings", Mr. Hung said.

No matter where you invest, the legal factor must be the top priority. Once you have found a potential market, the deciding factor in choosing an investment is legality. "A piece of land with full papers and accurate measurements is the target of current investors," said Mr. Ta Quang Nam, a real estate broker in Hai Duong City.

Mr. Vu Van Phong in Hai Tan Ward (Hai Duong City) is one of many investors who "captured" "offshore" real estate from Da Nang and Phu Quoc 10 years ago. According to Mr. Phong, the context of the Hai Duong real estate market at that time was basically similar to today. "The market was still stagnant, land prices were high, so at that time, real estate outside the province was a more attractive choice," Mr. Phong said.

However, Mr. Phong also emphasized the legal factor when investing. "In the past, investors often chose to buy any plot of land, as long as it would generate profit, even buying land by the whole cong, roughly speaking, each cong of land was 1,000 m2 wide.²rather than paying attention to legality. Many Hai Duong investors had to regretfully cut losses of tens, even hundreds of millions of dong just because they bought land with legal errors. Therefore, now investors are more cautious," Mr. Phong added.