» » Potential for Long An property market

Infrastructure development is imperative for waking up the property market, especially for property projects in the outlying districts of HCMC and in neighboring provinces. Many property developers have managed to attach the road system development to the promotion of their projects, using it as an additional value to woo individual investors to neighboring regions where projects are being developed.

Traffic convenience is the main catalyst to wake up the land market in outlying districts. Reality shows that when Thu Thiem and Phu My bridges were put into services, the potential development for Districts 2 and 9 has been pushed up, offering a lot of profits to property traders in the districts.

Likewise, the property market in Binh Duong Province turned busier a couple of months ago as a new urban city plan was introduced, alongside the province’s road system being developed to link it to HCMC.

Similarly, the property market in the southern province of Dong Nai has also heated up as a highway system running across the province and an international airport in Long Thanh District – all still being in the offing – help highlight its property development potentials to entice investors.

Without exception, properties in the Mekong Delta province of Long An are awakening due to a new project: the HCMC – Trung Luong Expressway that was opened to traffic months ago and which substantially shortens the distance from the province to HCMC. Local media have reported that many individual investors from HCMC and other regions in recent weeks went to districts in Long An adjacent to HCMC to sound out property investment opportunities.

According to the market research company VietRees, poor infrastructure has hindered property development in the province for years compared to Dong Nai and Binh Duong provinces, although Long An is in close proximity with HCMC. As a result, land and housing projects there have been priced lower than those in the eastern provinces.

The research company says trade there remain stagnant and the market focuses mainly on residential and urban town projects in Duc Hoa and Ben Luc districts, and Tan An Town. Highlighted property projects there include Mekong Riverside, Tan Duc E.City and Urban Commercial Center of Tan An City.

VietRees says land is priced in the range of VND1.5 million to VND3 million per square meter in Duc Hoa District, between VND3 million and VND4 million per square meter in Ben Luc District and VND4 million to VND8 million per square meter in Tan An Town.

In general, low investment requirement, around VND400 million for a land plot for a house, is offering an advantage to the provincial property market as many individual investors are flocking there for business opportunities.

Dang Quoc Cuong, general director of Nha Viet Real Estate Company – which is serving as a distributor for the Mekong Riverside project, told Lao Dong newspaper last week that a lot of investors had deposited money for a land lot in the project though it had not been launched onto the market. The project covers some 70 hectares with some 1,150 land plots for row houses, garden houses and villas.

Cuong attributed limited supply plus convenient traffic to the recent bustling property market in the province.

However, an official in the provincial construction department told Saigon Tiep Thi newspaper last week that infrastructure development woke up the property market there as many investors from HCMC had toured the region for buying lands. He, however, denied rumors that land prices in the province had increased sharply. Brokers in the region are taking this chance to push prices to the sky.

Some property experts warned that property investors should look into mid- and -long term investment, rather than a short-term one. This is because the road system development is just a necessary condition, and the market still needs social infrastructure development to make the market really move. Therefore the provincial market still has a long way to go to turn its potentials into reality.

VietRees projects that many project developers in Long An are rolling their sleeves to launch their projects with competitive prices to attract individual investors from other province. It is expected to see the provincial property market turn busier in the next three years.

Source: Sai Gon Tiep Thi

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