The trend is currently spreading to Dong Nai and Binh Duong, two of Ho Chi Minh City’s neighbouring provinces, and particularly to areas with a good connection to the city.
According to local experts, land prices in the Nhon Trach and Long Thanh districts of Dong Nai – where the city’s future airport will be located – have increased by 20-30 per cent since 2016.
In Bien Hoa, the capital of Dong Nai, the price of land has also increased remarkably, especially after Ho Chi Minh City authorities announced their plans in 2017 to expand the metro line. The transport line is currently under construction and will link Ho Chi Minh City to Bien Hoa.
The Swan Park project, located on Dai Phuoc Peninsula in Dong Nai – a 50-minute drive from Ho Chi Minh City, is now on the radar of many buyers, with planned road and bridge improvements linking the area to Ho Chi Minh City and being slated to shorten the drive to 25 minutes.
A salesman involved in the project told VIR that the investor launched sales of its first phase of the Garden Town, which will consist of 750 units of semi-detached houses, shophouses, and villas.
With prices ranging from $100,000 to $250,000 per unit, most of the shophouses and villas were quickly picked up by buyers.
According to Tran Thi Cam Tu, general director of Eximrs Land, the distributing agency for the Long Hung Urban Area located in Bien Hoa, more than 1,600 land plots of this project were sold to the market.
The project not only reported an increase in liquidation, but also in price. Prices increased from VND8 million ($355) per square metre at its start to VND14 million ($622) more recently.
In the province of Binh Duong, many recently-launched projects have reported good liquidation. Among them is Mega City, invested by Kim Oanh Real Estate JSC. More than 1,400 land plots and townhouses were successfully transferred in the fourth quarter of 2017.
Thuan Tien, a subsidiary of DRH Holdings, recently launched 150 land plots in a project named Lai Thieu Central Garden. All of them were sold in one day. The prices of the project increased by 10 to 15 per cent after only one week.
Other projects attracting investors and buyers are Eco Xuan, invested by Setia Lai Thieu, and Midori Park, invested by Becamex Tokyu.
In the province of Long An, 2017 was also a good year for land plots, villas, and townhouses.
Le Tien Vu, general director of the Cat Tuong Real Estate Company, the investor of the Cat Tuong Phu Sinh eco-city located in Long An, said that in 2017 alone, more than 5,000 products from this project were successfully sold to the market. Prices increased by 80 to 100 per cent compared to the initial sales phase of the project in 2016.
Le Hoang Chau, chairman of the Ho Chi Minh City Real Estate Association, said that the plan to decentralise the population to neighbouring areas and satellite districts and provinces has been going on for years.
“The government’s strategy is to develop those neighbouring areas into regional urban areas. The neighbouring areas of Ho Chi Minh City like the Di An and Lai Thieu districts of Binh Duong or the Bien Hoa and Nhon Trach districts of Dong Nai will be key development areas in the future,” Chau said.
The proposed Ho Chi Minh City Metropolitan Area consists of Ho Chi Minh City itself and areas in the seven neighbouring provinces of Ba Ria-Vung Tau, Binh Duong, Binh Phuoc, Tay Ninh, Long An, Dong Nai, and Tien Giang, with a total land area of more than 30,000 hectares.
By Bich Ngoc