Real Estate Dealings Heat Up Near HCM City

14 Dec
VNREMore investors are showing interest in real estate projects in provinces surrounding Ho Chi Minh City like Dong Nai, Binh Duong and Ba Ria – Vung Tau. These localities are expected to be the most active real estate markets in southern Vietnam.
Active suburban realty market

Binh Duong province started the construction on new Binh Duong City, completed My Phuoc – Tan Van Highway and many crisscrossing roads in the new industrial – service – urban complex, giving a boost to the provincial real estate market. According to Savills Vietnam, in just the second quarter of 2010, a total of 18,200 apartments, villas and townhouses were offered for sale in Binh Duong province. In particular, Di An district accounted for the highest market share of 46 percent, followed by Ben Cat district with 19 percent. This shows that the supply of properties in Binh Duong province is the largest in the southeast of Vietnam.

The well-planned and located Green River – My Phuoc 4 project is very appealing to customers. According to Tac Dat Tac Vang Joint Stock Company, the distributor, the project is preparing to offer its third tranche for sale. About 1,100 customers have visited the project.

In Vung Tau City, there are many real estate projects, especially tourism property projects and resorts. The demand for real estate in the city is expected to soar in 2011. With overwhelming advantages, many investors consider the city an attractive investment destination for the coming years. In January 2010, Kim To Co., Ltd commenced construction on a VND470-billion 160-villa complex on an area of 12.5 hectares in Binh Chau hot spring area in Xuyen Moc, Ba Ria – Vung Tau province. Other typical projects include Binh Chau primitive forest tourist site and Ho Tram tourism complex (costing US$4.2 billion).

Knowing the important position of Ba Ria – Vung Tau in relation to HCM City, many investors have quickly arrived in Xuyen Moc district to register their projects.

The 33-ha Saigon – Binh Chau – Ho Coc eco-tourism complex consists of four sections, namely Phu Gia Seaside Fishing Village, Viet Village Resort, Southeast Wind Resort and Sea Star Suite. The complex is bordered by Safari Zoo in the east, about 130 km from Ho Chi Minh City, 40 km from Vung Tau City. Binh Chau Hot Springs is only a 10 minute drive from the complex.

Sea Star Suite is the last item of the Saigon – Binh Chau – Ho Coc tourism complex. This is luxurious condo hotels sold in the form of rental pools and operated as a 5-star hotel, invested by Saigon – Ho Coc Company and managed by Furama Hotels and Resorts International (FHRI) Hong Kong.

While Da Nang, Nha Trang and Phan Thiet in the central region are ideal destinations for second home investors, Ba Ria – Vung Tau province – with its advantage of closer proximity to HCM City – has quickly exerted a pull on domestic and international investors.

According to a market survey by VietRees, a real estate consulting firm, Dong Nai province will catch the attention of property investors in the coming years thanks to its huge potential. The province will have the Long Thanh International Airport, and better infrastructure systems and highways. More particularly, Nhon Trach area will be the nucleus of the market. Residential land is most favoured among real estate types, making up 88 percent of dealings.

High prospects

With a plentiful supply and competitive prices, real estate has attracted both investors and buyers. Mr Marc Townsend, Managing Director of CB Richard Ellis Vietnam – a market leader in real estate sales, lettings, research, valuation and property management in Vietnam – said about the Binh Duong market: “In recent times, a strong wave of real estate customers flooding into Binh Duong province has heated up the market. Combining a bountiful supply and strongly invested infrastructure, the Binh Duong real estate market stands out among regional localities. I believe that there will be many surprises and prospects for the Binh Duong real estate market in a few years to come when new Binh Duong City takes shape. It is certain that this province will attract a great number of people when Ho Chi Minh City becomes too cramped for them.”

Many real estate specialists also believe that residents’ relocating from Ho Chi Minh City to satellite cities like Binh Duong is a trend, given frequent flood-tides in the largest commercial centre of Vietnam.

While apartment prices in HCM City are unreasonably high, rates in Binh Duong and Dong Nai provinces are many times lower, standing at US$600 per square metre in popular segments. Prices of villas and townhouses are also very reasonable.

According to a representative from Tac Dat Tac Vang Joint Stock Company, the volatility of stock, gold and dollar markets is deteriorating the confidence of investors to a certain extent. They have shifted money into safer investment channels such as real estate. Real estate surrounding HCM City is catching the attention of both large and small investors.

Toan Thinh Phat Joint Stock Company said it is investing in many important projects in Dong Nai because it sees a growing demand for properties surrounding Ho Chi Minh City. Even foreigners living in Vietnam also want to own houses where the surroundings are pleasant.

Reported by Ha Linh | VCCI

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