Southern projects looking for more northern exposure

Big shot Hanoi buyers are looking to spread the wealth to the provinces

A range of real estate projects have been introduced to Hanoi’s market from Ho Chi Minh City, Binh Duong, Danang and Nha Trang. The projects include The Charm, Sunrise City, Ocean Villas, Hyatt Regency, Olalani, Fusion Alya, Azura and Blooming Park.

Talking with VIR at a recent road show to introduce Sunrise City, located in Ho Chi Minh, in Hanoi, Novaland Joint Stock Company marketing deputy director Huynh Du An said  many units were sold to Hanoians and those from northern provinces.

Meanwhile, a range of other central and southern projects have been rushing into Hanoi. Setia Becamex launched Binh Duong province’s Ecolakes My Phuoc in the capital late last week, a  week before TD Group introduced the Costa Nha Trang to Hanoians. This week Singapore’s Guoco Land’s Canary, located at the Vietnam-Singapore Industrial Park in Binh Duong province, will be unveiled to  northern customers.

“Bringing Ecolakes My Phuoc to Hanoi’s market is one of our key marketing strategies. Hanoians are paying more attention to higher standards of living and are interested in ecological housing,” said Khoo Teck Chong, general director of Setia Becamex.

VIR was told that for many projects in the central and southern parts, roughly 70 per cent of customers were from Hanoi and other northern provinces.

Matthew Koziora, sales director of VinaCapital - developer of the Azura in Danang, said the first 60 units, out of 225, were launched in Hanoi recently.

Out of the 40 units sold, 90 per cent of the buyers had come from Hanoi.

Hanoi has, according to Koziora, proven itself to be a key market for most new projects in Vietnam, given the demographics of these immediate catchments.

“While condominium offerings will always be available in Hanoi due to previous pent-up demands, we can see that not all projects will enjoy a healthy sell-through, as was seen 12 months ago.

“We do see, however, given the price differentials between house and land packages in Hanoi versus Ho Chi Minh City, that this market will be better received in the current marketplace and over the next six months as opposed to condominium project offerings at this time,” Koziora said

Ngo Huu Truong, managing director of a real estate agency in Ho Chi Minh City, said many customers from Hanoi and Haiphong had come to Ho Chi Minh City to find out information about new projects there.

“Demand is real and many projects’ investors have realised this trend and they are coming to Hanoi to promote their projects,” Truong said.

He also said the jury was still out on how effective the promotions were.

“I think that these developers [who bring their projects to Hanoi] have at least seen their target to raise their image and brand names in northern customers,” Truong said.