The eastern area on the radar screen
The scarce urban land funds and the review of real estate projects have been pushing supply down in Ho Chi Minh City – the country's largest real estate market. This represents an opportunity for suburban real estate markets surrounding the city such as Binh Duong, Dong Nai, and Ba Ria-Vung Tau provinces to develop at a faster pace.
Furthermore, according to experts, the government's policy directive of encouraging urbanites to move into suburban areas to free up space in the central business districts is another key driver of growth for satellite cities.
With the advantages of having a bountiful land fund and fast-developing transport system, the eastern area of Ho Chi Minh City, especially Dong Nai province, has attracted a number of giant developers who are making the area busier.
The projects in this area, especially the townhouses and villas, remain a top priority for investors. Part of the reason for this is due to the popular notion among Vietnamese people that investment in landed housing is a stable, long-term investment.
According to Le Thi Thu, a resident of Ho Chi Minh City, many of her friends shifted their investments from Ho Chi Minh City to neighbouring areas.
“Dong Nai is a good choice. The province is getting 'hotter' dramatically as infrastructures are developing at a tremendous pace, especially Long Thanh Airport, which brings in more and more investors,” Thu said.
Nguyen Thi Thanh, another resident from Ho Chi Minh City, said she was greatly impressed by Aqua City’s luscious green space in Dong Nai and its proximity to Ho Chi Minh City. Therefore, Thanh decided to invest in a townhouse for weekend vacations with her family and relatives.
According to statistics from batdongsan.com.vn, in 2019, buyer’s interest in projects located at satellite cities such as Dong Nai increased by more than 48 per cent.
Dr Vo Tri Thanh, former deputy director of the Central Institute for Economic Management, commented that today, the investment and consumption demand of investors, organisations, and individuals in the vicinity of Ho Chi Minh City and Hanoi is increasing.
There are many factors behind this. Firstly, supply has been declining in big cities. Secondly, suburban areas have been closing the economic growth gap with central cities, and thirdly, the development of infrastructure is becoming more vivid. In addition, nowadays people are not looking for a simple house to live but are rather on the market for a pure and green living environment. These trends elevate suburban eco-cities are an ideal place for investment and settlement.
Suburban eco-city will remain the key channel for investment flow in 2020
At the Seminar themed Investment Opportunities in the Vicinity of Ho Chi Minh City 2020, many experts stated that housing supply in 2019 sharply reduced and thus created an opportunity for neighbouring provinces to develop. Innovative real estate forms such as second homes or smart eco-cities will continue to be the trend in the coming years.
In particular, large-scale projects with synchronised planning, clear legal titles, convenient location, and flexible payment policies, among others, will certainly continue attracting investment. An outstanding project of this kind is Aqua City – the eco-smart city located in Bien Hoa town of Dong Nai province, invested by Novaland Group.
Aqua City dedicates more than 70 per cent of its land for green space with numerous public utilities such as school, hospital, shopping mall, Australian-style grand park, or a yacht marina. The project is also located within the Southern Key Economic Region, making it well-connected to convenient traffic axes.
Within a 5-7km radius from Aqua City, residents can easily reach University Medical Shing Mark Hospital, Long Thanh Golf Course, international tourist area Son Tien, and many others.
The project is conveniently situated in front of Huong Lo No.2 route and is connected straight to the Ho Chi Minh City-Long Thanh-Dau Giay Highway, which helps shorten the distance to Ho Chi Minh City by less than 20 minutes of driving.
In addition to high-class utilities, Aqua City applies modern technology solutions in its daily operations, such as green energy, full-scale CCTV, and operation apps, enabling modern residents to fully enjoy their lives.