Real estate investors in HCM City are gradually moving their capital into neighboring provinces because this is a potential market and convergence of many advantages for development.
Investors are no longer salty but with real estate Ho Chi Minh City
According to the Real Estate Association, in the big cities, the rate of real estate price increase this year is not as high as in previous years. Even more are forced to reduce their selling prices in different ways.
Ho Chi Minh City real estate is gradually losing its attractiveness, land funds become limited, secondary investors, speculators and developers of small and medium real estate are turning to the new market in the province, the coastal area where the attractiveness of both price and investment incentives.
Besides, at present, the coastal areas are strongly invested by the state in infrastructure, urban transport. As a result, the value of real estate in this market increases.
The Heat from the coastal real estate
The heat from the land market in neighboring provinces is rooted in the growth of the land market in the districts surrounding HCMC. In districts in the East of HCMC such as District 9, Thu Duc, according to the survey, in 2017 and early 2018, land prices increased 30-40% on average compared to the previous year. Among them, there are project prices have risen to 70%.
This “fever” does not stop in the urban districts of the city, but also spread to neighboring provinces such as Dong Nai and Binh Duong, the hottest in the areas adjacent to the city center with good infrastructure connection.
In Dong Nai, the price of land in Nhon Trach and Long Thanh increased by 20 – 30% compared to 2016. In Bien Hoa area, land prices have surged, culminating after the policy of linking Metro No. 1 between HCMC and Bien Hoa.
According to General Director of Eximrs Real Estate Company, Tran Thi Cam Tu, currently distributing Long Hung Urban Area (Bien Hoa), has about 1,600 lots of Long Hung project. was launched. This project is not only the increase in liquidity but the price is also increasing quite strong. According to the record, the price of the initial offering of Long Hung project is in the range of 7.5 – 8 million/ sqm, but now has increased to 13 – 14 million/ sqm.
In Binh Duong, a number of projects have been listed in the market with good liquidity such as: Mega City project of Kim Oanh Real Estate Joint Stock Company has 1,400 land products, / 2017.
Recently, Thuan Tien (a member of DRH Holdings) announced the sale of the Lai Thieu Central Garden project. Within a week, almost 150 land plots were sold out and after a week, land prices in this project are sold by investors from 10-15%. In addition, some projects such as Midori Park of Becamex Tokyu Company, ECO Spring of Setia Lai Thieu … also attract crowded customers to visit, bustling transactions.
Looking at the size of the HCM City real estate market, Le Hoang Chau, Chairman of the HCM City Real Estate Association, said the real estate market in HCM City is trending towards the very edge of the city.
There are two main reasons for this trend. Firstly, HCM City started to tighten the licensing of real estate projects in the central areas, promote the relaxation program, so it is inevitable that businesses will have to Move out to the suburbs to develop the project. Secondly, the price of real estate in the fringe area is cheaper, diversified in terms of investment value, high growth potential should attract investors.
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