Southern Vietnam real estate market slated to recover quickly: experts say

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The real estate market in Vietnam's south – including Binh Duong province’s Thuan An city – will recover strongly starting at the end of this year thanks to the fact that demand still outstrips supply, experts have said. VIETNAM NEWS AGENCY

After more than four months of slowing down due to the Covid-19 pandemic, the property market in the south is regaining strength and there are optimistic signs of a recovery thanks to demand still exceeding supply.

While the Ho Chi Minh City (HCMC) market had gone quiet after the renewed Covid outbreak, in neighbouring provinces like Dong Nai, Long An and Binh Duong it had seen robust growth last year, experts said.

Distance is no longer a problem for developers in and around HCMC thanks to improved transport infrastructure, and they are increasingly looking at neighbouring provinces where prices are more reasonable and have potential for property development, according to experts.

In HCMC, some 20 projects in all segments were launched in the first six months of this year with 30,000 units.

According to the Vietnam Real Estate Brokerage Association, the economy will keep pace and achieve better growth, and so investment and demand for housing will recuperate.

The apartment segment is expected to account for a large proportion in the city, with mid-priced, two-bedrooms units remaining the most in demand.

Housing demand in the city exceeds 100,000 units a year, which outstrips supply.

Limited supply was mainly because lack of land and legal barriers make developers turn to neighbouring provinces such as Binh Duong and Dong Nai.

The Dong Nai housing market seems to be of special interest to them, with many large players have such as Novaland, DIC Corp, Dat Xanh, and Nam Long already involved to take advantage of the opportunities offered by improving infrastructure such as highways connecting it with other localities.

Some key infrastructure projects under construction or are in the works include Long Thanh International Airport, the Ben Luc-Long Thanh and Bien Hoa-Vung Tau expressways and the Dau Giay-Phan Thiet Highway.

As of August Dong Nai had approved compensation payments of more than nine trillion dong ($400 million) for more than 1,900ha of land.

The province People’s Committee has also sought government funding of more than four trillion dong for two roads connecting Long Thanh airport, provincial roads 763 and 770B.

According to analysts, real estate projects located around the airport will benefit in the future.

Notably, the Gem Sky World urban area project developed by Dat Xanh Group has quickly become a hotspot.

In Binh Duong province, land in areas close to HCMC with potential for economic development, such as Thuan An and Di An cities, have become ideal for affordable apartment projects, a product the metro lacks.

The Vietnam Association of Realtors said apartment prices in Binh Duong increased sharply last year despite Covid, from 25-30 million dong per sqm to 30-35 million dong, but remain much lower than in HCMC.

VIET NAM NEWS/ASIA NEWS NETWORK