HCM City developers move to provinces on cheaper prices, improving transport infrastructure
While the HCM City housing market has gone quiet after the renewed outbreak of COVID-19, the market in neighbouring provinces like Dong Nai, Long An and Binh Duong has seen robust growth this year, experts said.
Distance is no longer a problem for developers in and around HCM City thanks to improved transport infrastructure, and they are increasingly looking at neighbouring provinces where prices are more reasonable and have potential for property development.
A recent report by the Viet Nam Association of Realtors (VARS) said the development of Long Thanh International Airport in Dong Nai and Thu Duc City and the construction of new roads and bridges connecting the south-eastern region with HCM City have led to increased activity in the real estate market.
This is creating a wave of investment in emerging markets while traditional markets are reaching saturation point, general director of real estate services firm DKRA Viet Nam, Pham Lam, said.
In Binh Duong Province, land in areas adjacent to HCM City which have potential for economic development, such as Thuan An and Di An cities, have become ideal for affordable apartment projects, a product the city lacks.
VARS said apartment prices in Binh Duong increased sharply last year despite Covid-19 -- from VND25-30 million (US$1,080-1,300) per square meter to VND30-35 million (US$1,300-1,500) -- but remain much lower than in the city.
In Dong Nai, land prices in areas close to the eastern part of HCM City have also increased, especially thanks to the construction of the airport in Long Thanh.
In 2019 the average land price was VND12-14 million per square metre, and rose to VND22 million last year. In Long Thanh Town, the price has surged to VND100 million in some areas.
The real estate market in Ba Ria – Vung Tau Province is also hot since it is adjacent to HCM City and has great potential for tourism development.
Investors also are keen on Long An Province, which too borders HCM City. Some projects with high potential go for VND21-26 million per square metre while in other areas is VND13-15 million.
No land is available in recent projects at less than VND15 million.