With the real estate market exhibiting noticeable shifts, investors are increasingly withdrawing from Ho Chi Minh City due to rising land prices and are instead turning their attention to neighboring provinces offering more affordable opportunities. Recent comments from Le Hoang Chau, President of the Ho Chi Minh City Real Estate Association (HoREA), underline these burgeoning trends amid concerns about long-term ramifications.
During the seminar titled "Applying Land Price Table According to 2024 Land Law," Chau articulated his apprehensions on the necessity of adjusting the land price table in the city, highlighting its direct influence on the real estate market. According to Chau, persistent hikes in land prices will likely push investors away from Ho Chi Minh City to neighboring regions such as Binh Duong and Long An, where they can capitalize on lower costs.
Chau expressed, "Ho Chi Minh City is facing rising prices across the board, which may lead investors to shift focus to neighboring regions. The current land price adjustments might yield short-term benefits, but could cause long-term consequences as investors withdraw." This warning encapsulates the urgency felt by industry experts, who fear the consequences of excessive pricing on investor sentiment.
The investment migration appears inevitable as available land within Ho Chi Minh City dwindles. Instead, investors seek new opportunities with promising returns coupled with reasonable pricing. Long An has emerged as an attractive alternative, acting as the gateway to southwestern Ho Chi Minh City. The area is generating buzz due to its proximity to expansive industrial zones and access to major highways including the Ho Chi Minh City-Trung Luong expressway and future ring road projects.
One significant highlight is the new urban project LA Home located in Ben Luc district, developed by Prodezi Long An. The 101.4-hectare project aims to provide approximately 3,750 diverse housing options including townhouses, shophouses, villas, and luxury mansions. Conveniently positioned near three rivers and benefitting from various transportation options like road, water, and rail, LA Home is catching the eye of numerous investors.
LA Home's developers are also emphasizing the project's focus on amenities. Upcoming facilities will include shopping centers, supermarkets, convenience stores, playgrounds, sports venues, gyms, spas, restaurants, cafes, health facilities, and even golf courses. This well-rounded offering not only presents appealing residential options but also addresses the lifestyle needs of its future inhabitants.
Yet it isn’t only Long An gaining traction among investors; Binh Duong, neighboring Ho Chi Minh City, is rapidly becoming another hotspot for investment. Projects around areas like Di An, Thuan An, and Tan Uyen are not only priced attractively but also hold great potential for appreciation due to the completion of infrastructure developments.
Outstanding real estate initiatives such as The Gió Riverside and TT AVIO in Di An are already witnessing enthusiastic interest from investors. These projects exemplify the growing confidence and burgeoning activity within the regional real estate marketplace. Investors are clearly drawn to the relatively accessible price points paired with the potential for future growth, which contrasted starkly with stifling prices within Ho Chi Minh City.
Overall, shifting investment dynamics depict not only the challenges but also the opportunities within Vietnam's real estate sector. Investor trends suggest adapting to regional constraints and exploring diverse markets is becoming increasingly advantageous. While Ho Chi Minh City remains a vibrant hub, the allure of surrounding provinces spells exciting developments for both investors and local economies alike.
These trends exemplify transformative changes within Vietnam's real estate sphere, urging stakeholders to adapt to the shifting environment. With high confidence and interest now centered upon areas like Long An and Binh Duong, the future holds promising prospects for sustainable growth and economic development.