A corner of Ho Chi Minh City (Photo: VNA)Hanoi (VNS/VNA) - Distance is no longer a problem for propertyinvestors in and around Ho Chi Minh City thanks to improved transportinfrastructure.
The southern property market is seeing an increasing trend of investors lookingto the southern hub’s neighbouring provinces.
With land running out for property development in the city, investors areeyeing markets like Dong Nai, Binh Duong, Vung Tau, Long An and Binh Phuoc whereprices are more reasonable and have significant potential for property development.
This was creating an investment wave inemerging real estate markets while traditional markets were reaching saturationpoint, general director of real estate services firm DKRA Vietnam Pham Lam said.
With the development of transport infrastructure, Lâm forecast emerging realestate markets would boom.
Tran Duc Vinh, general director of real estate firm Tran Anh Long An, said thefirst thing property developers considered was the development or planning fortransport infrastructure.
HCM City was working with neighbouring provinces and cities to developtransport projects aimed at promoting regional links, such as the belt roadconnecting Dong Nai province’s Nhon Trach district and HCM City and Cat Lai Bridgeconnecting Nhon Trach and HCM City’s District 2.
The southern city also planned to invest 96 trillion VND (4 billion USD) intransport infrastructure this year.
“The opportunities are there for emerging real estate markets when transportconnectivity with HCM City improves,” Vinh said, adding that propertydevelopers were gearing up to tap these opportunities.
Vietnam ranks fourth in East Asia in urbanisation growth rate. It was forecastthat more than 45 percent of the country’s population would live in urban areasin 2030 from the current 37.5 percent.
Nguyen Nhat Cuong from VietinBank Securities Company said rapid urbanisationsuggested something for property developers. Instead of focusing on marketslike Hanoi and HCM City, they were moving to neighbouring markets to tap thepotential from rapid urbanisation and many projects had seen good salesresults.
In Long An province, developer Hoang Quan is preparing to implement acommercial housing project with 713 units covering 4.9 hectares in Ben Luc district.
According to the Dong Nai provincial People’sCommittee, a sum of more than 33 trillion VND will be invested in transportinfrastructure projects from 2018-20 to ensure connectivity with Long Thanh InternationalAirport. In addition, the province was working on the Bien Hoa – Vung Tau highwayand metro line to HCM City.
Distance was no longer a problem for property developers, said Le Hoang Chau,president of the HCM City Real Estate Association. Transport infrastructurewould be the catalyst for an investment wave in emerging real estate markets,he added. – VNS/VNA
VNA
