Many property investors from HCM City, Vietnam’s southern economic hub, are seeking opportunities in neighboring provinces like Binh Duong and Dong Nai, where land prices are only 20 to 30 per cent of those in the municipality.
Investors can buy property at moderate prices and almost certainly make a profit, prompting more people to invest in neighboring provinces instead of in the city, analysts said.
In the Dong Nai province, prices are even cheaper. In urban projects, prices are just a third or quarter of that in HCM City, Nguyen Ngoc Thien, a broker said.
"People with VND150 million can buy a 100sq.m. lot of land in a good place," he said.
Nguyen Thi Thanh Huong, director of the Tin Nghia Real Estate Company in Bien Hoa City, said since the beginning of the year, her company had helped trade more than 500 plots of land at prices ranging from VND110 million to VND185 million for 90sq.m.
Nguyen Thanh, director of a property brokerage in Long Thanh District, said key projects like Long Thanh International Airport and HCMC-Long Thanh-Dau Giay express highway had helped push up the prices of land by several times.
A similar situation exists in Duc Hoa District’s Loc Giang Commune and Trang Bang District’s An Hoa Commune in Tay Ninh Province.
Many HCM City investors have come to these communes to buy land close to the Bourbon-An Hoa Industry-Service Park, hoping to make a huge profit once construction of the zone is complete.
According to the Foreign Investment Department under the Ministry of Planning and Investment, in the first four months of the year, a whopping 91 per cent of the US$6.36 billion FDI inflow into the country targeted the real estate sector.
The department says registered capital for hotel and resort projects amounted to US$4.5 billion, followed by urban area projects at US$600 million and office building projects at US$684 million. (VNA)
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