Binh Duong, Dong Nai, Long An... are considered as low-lying areas of real estate capital flow over time.
The investment wave has spread strongly to the neighboring provinces of Ho Chi Minh City. The completion of infrastructure and natural advantages have paved the way for the strong development of the real estate market in these localities.
Dong Nai plans to start building Cat Lat Bridge connecting Nhon Trach district with District 2, Ho Chi Minh City by 2020, many investors are starting to come to Nhon Trach district, especially the communes near Cat Lai ferry.
As the connection point between Ho Chi Minh City and the Mekong Delta region, Long An benefits greatly from the arterial highway system. In addition to the Ho Chi Minh City - Trung Luong Expressway, Long An also has Ben Luc - Long Thanh Expressway which will be opened to traffic in 2020, helping to connect directly to Ho Chi Minh City and Dong Nai.
According to investors, low land price makes Long An real estate market attractive to investors, becoming one of the three low-lying areas of the South.
A corner of Nhon Trach district (Dong Nai) was taken from flycam. Photo: Saigon Cen.
In the South, Binh Duong is the province that receives large foreign direct investment (FDI). In the press conference in the second quarter of 2019, the representative of Binh Duong People's Committee said that the locality attracted US $ 1.3 billion of foreign direct investment. This result increases the number of FDI projects in the locality to 3,639 projects with a total registered capital of 33.76 billion USD. Binh Duong continues to rank 3rd in the country in terms of FDI attraction (after Ho Chi Minh City and Hanoi).
The number of foreign experts and the labor force from provinces and cities to live and work is about 50,000 people. They are mainly concentrated in Thu Dau Mot City. According to experts, this is a factor attracting large-scale housing projects in industrial centers in Binh Duong recently.
With the apartment segment, the supply recorded more than 24,000 units and is growing sharply in both quantity and quality of houses, according to the Binh Duong apartment market report published by Jones Lang LaSalle (JLL) in August. The number of apartments in Binh Duong is 5.3 times higher than that of terraced houses, although the land fund for low-rise houses is very large.
In this report, 6,224 units have been launched and will open for sale in Binh Duong in stages in 2019-2020. However, new launch projects may continue to increase in the second half of 2019 and 2020 as investors continue to update the basket. The average price of apartments in the primary market of Binh Duong is 939 USD per m2 but still tends to increase.
The majority of these are concentrated in Thu Dau Mot, Di An and Thuan An. The market set the highest new price level in the past 10 years, reaching the threshold of 35 million per m2. This price increased by 20-30% compared to the end of 2018 according to a survey of Cen Saigon Real Estate Joint Stock Company.
According to Thanh Duong