Property investors are looking for alternative investment choices for their money since large cities appear now to promise fewer opportunities. They are eyeing provinces near HCMC, such as Long An, Dong Nai, Binh Duong, Can Tho and Ba Ria-Ving Tau, analytists say.
For example, Nam Long unexpectedly took over the 170-hectare Waterfront City in Long Thanh, Dong Nai province. The project was initially registered by Keppel Land.
The total value of the M&A deal was reported at VND2.3 trillion and the estimated investment capital at VND9.2 trillion.
At the end of last year, Nam Long also spent trillions of dong to develop a project in Nhon Trach district.
Now investors are cautious when accessing provincial markets because of the consumption capability and the lack of infrastructure. However, they believe that opportunities exist in the markets.
Meanwhile, Dat Xanh has projects in in Can Tho, and Hung Thinh has developed a series of projects – Bien Hoa New City in Long Thanh and Baria City Gate in Ba Ria-Vung Tau.
Thu Duc House has taken over an apartment project (1.9 hectares) in Binh Duong. Meanwhile, T&T Group found a project in Can Giuoc of Long An province, while Phat Dat plans to develop projects in Quang Ngai and Phu Quoc.
Novaland has unexpectedly entered the resort real estate markets of Can Tho, Phan Thiet and Vung Tau.
Investors are cautious when accessing provincial markets because of the consumption capability and the lack of infrastructure. However, they believe that opportunities exist in the markets.
The attractiveness of the provinces lies in projects to upgrade transport. Highways, for example, will connect to HCMC and neighboring localities.
In the latest move, HCMC authorities have agreed to assign Dong Nai province to build Cat Lai Bridge which connects district 2 in HCMC and Nhon Trach district of Dong Nai.
The project, estimated at VND5.7 trillion, would replace the existing ferry station which is overloaded, while it would bring business opportunities to the triangle area of Long Thanh – Nhon Trach – Ba Ria-Vung Tau.
Meanwhile, Phu Quoc, Cam Ranh, Binh Thuan and Vung Tau have great advantages to develop leisure travel thanks to the government’s plan to promote tourism development.
Last year, Vietnam received 15.6 million foreign travelers, 2.7 million higher than in 2017, with total revenue from tourism reaching $27 billion.
Demand for houses and other types of accommodation will continue to rise this year and upcoming years. Vietnam and Singapore will be the two leading markets in Southeast Asia in terms of growth rate this year, Chris Marriott from Savills expected.
