Property developers eye emerging markets
Distance is no longer a problem for property investors in and around Ho Chi Minh City thanks to improved transport infrastructure.
The southern property market is seeing an increasing trend of investors looking to the southern hub’s neighboring provinces.
With land running out for property development in the city, investors are eyeing markets like Dong Nai, Binh Duong, Vung Tau, Long An and Binh Phuoc where prices are more reasonable and have significant potential for property development.
This was creating an investment wave in emerging real estate markets while traditional markets were reaching the saturation point, general director of real estate services firm DKRA Vietnam Pham Lam said.
With the development of transport infrastructure, Lâm forecast emerging real estate markets would boom.
Tran Duc Vinh, general director of real estate firm Tran Anh Long An, said the first thing property developers considered was the development or planning for transport infrastructure.
HCM City was working with neighboring provinces and cities to develop transport projects aimed at promoting regional links, such as the belt road connecting Dong Nai province’s Nhon Trach district and HCM City and Cat Lai Bridge connecting Nhon Trach and HCM City’s District 2.
The southern city also planned to invest 96 trillion VND (4 billion USD) in transport infrastructure this year.
“The opportunities are there for emerging real estate markets when transport connectivity with HCM City improves,” Vinh said, adding that property developers were gearing up to tap these opportunities.
Vietnam ranks fourth in East Asia in urbanization growth rate. It was forecast that more than 45 percent of the country’s population would live in urban areas in 2030 from the current 37.5%.
Nguyen Nhat Cuong from VietinBank Securities Company said rapid urbanization suggested something for property developers. Instead of focusing on markets like Hanoi and HCM City, they were moving to neighbouring markets to tap the potential from rapid urbanization and many projects had seen good sales results.
In Long An province, developer Hoang Quan is preparing to implement a commercial housing project with 713 units covering 4.9 hectares in Ben Luc district.
According to the Dong Nai provincial People’s Committee, a sum of more than 33 trillion VND will be invested in transport infrastructure projects from 2018-20 to ensure connectivity with Long Thanh International Airport. In addition, the province was working on the Bien Hoa – Vung Tau highway and metro line to HCM City.
The distance was no longer a problem for property developers, said Le Hoang Chau, president of the HCM City Real Estate Association. Transport infrastructure would be the catalyst for an investment wave in emerging real estate markets, he added.