Demand for real estate in the Ho Chi Minh City suburbs is growing as property in the city center becomes scarce and infrastructure to nearby areas improves. Developers have already taken notice and are now launching projects and buying land in connecting provinces. However, experts have warned property investment here must be taken with a view of the long term in mind
Pham Lam, DKRA Vietnam General Director, told the Vietnam Investment Review that Binh Duong, Dong Nai, and Long An provinces have garnered the most attention from developers and property investors. All three are in the Ho Chi Minh City suburbs and are buoyed by a number of factors.
“Suburban provinces have a larger land fund with lower expenses for clearance and compensation, while the improvement of infrastructure is encouraging investors to come here,” Lam told the website.
The government has been extremely active in improving connectivity between the Ho Chi Minh City suburbs and the city center. Some projects, like the Ho Chi Minh City-Trung Luong Expressway and N2 Highway, have already been completed while work on others, such as the ambitious Ho Chi Minh City metro line, is ongoing.
Developers target the Ho Chi Minh City suburbs
Many homebuilders have already acquired land and launched developments in the Ho Chi Minh City suburbs. For example, Novaland and Dat Xanh Group have already opened sales for projects in Dong Nai.
In Long An, Vingroup, Him Lam Land and Nam Long Group have submitted proposals for large-scale developments. The move comes as many developers have recognized that more buyers want house and villas in projects that offer large green spaces.
The key for both developers and property investors is to look at the long-term picture instead of chase immediate returns. That is because the full impact of infrastructure projects on property prices won’t be seen for years.