The Vietnamese real estate market is witnessing remarkable investment trends, particularly surrounding urban developments.<\/p>
Recently, the push for land acquisition near large-scale urban projects has intensified, particularly as news of government compensation for land is circulated. Investors are actively seeking plots with proper title documents adjacent to significant suburban developments, including the recently approved Phước Vĩnh Tây New Urban Area. On July 10, 2024, the Long An Provincial People's Committee authorized the Vinhomes-VIG consortium to develop this vast 1,089.6-hectare project, which is anticipated to boost surrounding land prices significantly.
With projections estimating the population within this new urban area could exceed 99,000 by 2040, the interest from investors is also tied to newly released government policies. The real estate market is adjusting to these shifts, and as reported by Đinh Minh Tuấn, Director of Batdongsan.com.vn, “The investors are excited as land lots near large urban projects are limited, prompting them to invest now to reap future returns.”
One highlight is the Saigon Riverpark development, situated near Quốc lộ 50, which has seen substantial investor interest. The proximity to the Phước Vĩnh Tây project makes it particularly appealing, with land prices starting from VND 1.96 billion per lot and financing options available—an important factor for many buyers.
Land prices around this and similar developments are projected to surge driven by demand and infrastructural improvements. Major transport projects, including regional highways and the upcoming Bến Lức - Long Thành expressway, will link these suburban areas to Ho Chi Minh City efficiently. This connectivity is expected to make investment areas even more attractive to potential homeowners and investors alike.
Notably, as prices for high-end properties soar, investors are shifting their focus to neighboring provinces where prices remain more accessible. Reports indicate significant interest from Ho Chi Minh City residents buying homes and land lots in Long An, as evidenced by the statistic where 77% of homebuyers from this demographic are purchasing property outside the city.
The market's split between Ho Chi Minh City and Hanoi is stark. Prices for new condominiums and other property types have exceeded VND 50 million per square meter, with projections indicating there will be no more properties for sale under this threshold by 2025. Investors are now turning toward suburban areas where plots under VND 2 billion remain available.
According to Lê Đình Chung, CEO of SGO Homes, “The market is entering a new growth phase as infrastructure investment increases, and potential for future price increases remains.” Indeed, this sentiment is echoed by many investors adjusting their strategies as they seek to capitalize on rising land values and new regulations prohibiting the subdivision of land for resale.
The trend toward investing 1-2 billion VND land lots outside metropolitan regions is gaining momentum, with amateur and seasoned investors alike searching for plots about 120-160 million VND per square meter. With the government's recent incentivization policies around infrastructure and urban development, this option is becoming increasingly appealing.
Looking toward the future, analysts predict the completion of new laws enhancing property rights and investment flow could create conditions ripe for price increases throughout 2025 and beyond. The real estate sector's overall health is signaling recovery momentum, particularly for solo, suburban investments.
Overall, the shifting dynamics and growing urban development mark the Vietnamese real estate sector's adaptability and opportunity for significant growth as investors become increasingly savvy and strategic about their choices.
