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Dong Nai Province has become hot property for its proximity to the southern economic hub of Ho Chi Minh City, industrial zones and planned infrastructure upgrades.

With prices one quarter to one third lower than in HCMC, land in Dong Nai province is being snapped up, especially by low-income earners working in HCMC, just 30 kilometers away.

Analysts said a decent-sized plot of land in Dong Nai could be purchased for just VND100 million (US$5,714).

Many investors flocked to Bien Hoa City in Dong Nai Province in March and April to purchase parcels of land along Highway No 51, which leads to Vung Tau City, home to many industrial zones and offshore oil fields.

According to Nguyen Thi Thanh Huong, director of Tin Nghia Real Estate Trading Floor, the only property trading center in Bien Hoa City, a release of 500 land lots in the Thanh Phu Project in Vinh Cuu District sold out in February, with land going for VND110 million to 185 million ($6,285-$10,571) per lot.

In the first sales rush, 200 land lots were sold in 10 days. The next 300 land lots to be released were sold in just three days, she said.

Huong said prospective home-owners could buy a nice house in Dong Nai Province for only VND500 million ($28,571).

Dong Nai has long been considered an attractive investment destination for industrial zone developers. Many laborers who moved to the province are now able to afford land after many years’ of saving.

Real estate experts said land prices in Dong Nai were expected to leap in the next few years as the province’s infrastructure and transport systems are developed and the Dong Nai-HCMC highway upgraded.

The $6.6 billion international airport at Dong Nai Province’s Long Thanh District, capable of carrying up to 100 million passengers a year, is now under construction. The airport is scheduled to be operational in 2011. A series of seaports, including Phuoc Thai, Go Dau A and Go Dau B, have also been upgraded.

With the upgraded infrastructure expected to attract more investors and more residents, real estate developers are working on large-scale projects in Dong Nai, such as the Cu Lao Tan Van new urban area project, near the Dong Nai 2 Bridge.

Investors boasted that the $530 million project will be one of Vietnam’s biggest property developments.

According to real estate consultancy VietRees, in 2008 foreign direct investment (FDI) in Dong Nai Province’s real estate sector reached $3 billion, while domestic investment in the province’s property market was $1.3 billion.

Source: Lao Dong

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