Investors snap up land in provinces near HCM city

The land market in three neighbouring provinces of HCM City, Binh Duong, Long An and Dong Nai, is showing signs of recovery,

The land market in three neighbouring provinces of HCM City, Binh Duong, Long An and Dong Nai, is showing signs of recovery, with 85 lots in the IJC Commercial Town project in Binh Duong Province’s My Phuoc District selling out in the morning in their first day on offer late last month.

Nguyen Vinh Minh Thanh, general director of An Cu Lac Nghiep Joint Stock Co, the project investor, attributed the surprising result to the project’s good location, reasonable offer price of VND4-4.4 million (US$191-210) per square metre, and the attractive investor incentives.

Customers who bought the lots received a discount of VND400,000 ($19) per square metre and would receive another 20-per-cent discount if they paid on schedule, Thanh said.

Garden City, another housing project in the My Phuoc 4 urban area, has also attracted considerable investor interest, with 90 out of 160 lots snapped up within a week. The lots sold at VND1.7-2.7 million ($81-129) per square metre, a reasonable price compared to the cost of infrastructure investment and land use fees for the property, said Le Tien Vu, deputy director of Kim Oanh Real Estate Co, one of the project investors.

Meanwhile, in Long An, in addition to the sold-out Five Star urban area project, lots in the Long Hoi City project in Ben Luc District were expected to go quickly.

Doan Chi Thanh, general director of project investor Hoang Anh Sai Gon Co, said the company had received dozens of inquiries even prior to properties going up for sale.

The rising demand for land in these three provinces was attributed to their upgraded infrastructure and affordable land costs, said some market watchers.

The real estate market always worked in cycles and it was due for a rebound after a gloomy period, said Tac Dat Tac Vang Joint Stock Co general director Hoang Anh Tuan.

Land prices in HCM City remained high, sending investors into neighbouring provinces to look for more affordable projects, Tuan said.

Tags: Vietnam Property market, Vietnam property sector, vietnam real estate market