The promising land of Dong Nai
The progress of key infrastructure projects has been fast-tracked to create a driving force for the vibrancy of the real estate market in the southern province of Dong Nai, attracting a significant number of real estate developers and investors.
In 2022, amid a quiet period in the market, many deep-pocketed investors have scouted products with good prices in the potential suburban areas.
Dong Nai’s real estate market has emerged as a magnet and trading activities remain robust. The wave of rising prices has appeared in Bien Hoa city, Nhon Trach district, and Long Thanh district in particular.
Along the major roads in Nhon Trach district, real estate brokerage offices always have consultants on duty and the notary office is always busy with customers.
Ha, a real estate broker, said that when the pandemic was contained, the real estate market in Nhon Trach experienced many fluctuations. At the moment, the price of residential land, project land, and even agricultural land has increased by 20-30 per cent compared to the beginning of 2022.
“Despite the rising land prices, many people still made inquiries to buy. Buyers mainly come from Ho Chi Minh City, Bien Hoa, Binh Duong, and some localities in the north,” Ha said.
On Nguyen Huu Canh street, one land plot of 180 square metres sold for around $80,400. Compared with the beginning of 2022, the current price has increased by nearly $425 per sq.m. Sellers said that Nguyen Huu Canh will be expanded – the street is under construction and nearing completion, which has led to the land price hike.
Travelling along the National Highway No.51, one can see hidden waves in An Phuoc and Long Duc communes of Bien Hoa city, as well as Loc An and Long An communes in Long Thanh district, as a new price level in the real estate market is being established.
Anh Huy, a real estate broker in Long Thanh, said that land prices in this area increased while transactions were more robust than other places. The main reason is that it is close to the proposed Long Thanh International Airport and many residential areas and large urban areas such as Tam An urban area (more than 750 hectares), Binh Son new urban area (more than 550ha), and Gem Sky World (92ha).
In particular, as the progress of the airport is accelerated, the land price in the surrounding areas is also increasing day by day. For example, the Gem Sky World project, developed by Dat Xanh Group, was launched in mid-2020 with a price of $761 per sq.m. However, the price now stands at $1,480-1,700 per sq.m depending on location and subdivision.
The Century City Project by Kim Oanh Group is also recording a strong increase in price, from about $677 per sq.m to $1,270-1,480 per sq.m after only one year.
The driving force
Real estate in Dong Nai has benefited from infrastructure development initiatives, many of which are being fast-tracked.
While Long Thanh International Airport is receiving the most attention in Dong Nai, there are many road traffic projects being implemented in the locality, such as Phan Thiet-Dau Giay and Bien Hoa-Vung Tau expressways, and Ring Road 3 in Ho Chi Minh City.
Cao Tien Dung, Chairman of Dong Nai People’s Committee, said that site clearance for Phan Thiet-Dau Giay Expressway has almost been completed. The expressway connects to the airport, shortening the travel time from Ho Chi Minh City to Phan Thiet to only 2-2.5 hours instead of the 4-5 hours it takes travelling along the National Highway No.1.
In addition, the first phase of Bien Hoa-Vung Tau Expressway, with three component projects, is also being implemented. The component projects will be inaugurated by July 2023, and will be completed by 2025, according to the schedule.
The project connects Dong Nai and Ba Ria-Vung Tau province while acting as a connecting axis between Long Thanh International Airport and the Cai Mep-Thi Vai seaport cluster.
Ring Road 3 in Ho Chi Minh City was started in September 2022 with the construction of Nhon Trach Bridge connecting the city with Dong Nai. Once completed, the route will shorten the commute time from Nhon Trach to Ho Chi Minh City and Binh Duong, facilitating freight and passenger transport.
In addition, a number of road routes are being implemented in parallel such as Ben Luc-Long Thanh Expressway and Ring Road 4. Along with the airport, the internal road system in Dong Nai will unlock potential that not only brings the value of socioeconomic development, but can also reaffirm the investment value and sustainable development of provincial property.
“In 2023, when key roads are completed, Dong Nai will continue to be a hot spot to attract investment from professional investors and real home buyers,” said Tran Khanh Quang, CEO of Viet An Hoa Real Estate Investment JSC.
Dong Nai is also home to many large-scale urban projects with methodical planning and modern design, which are funded and developed by corporations such as Dat Xanh, Novaland, Dat Xanh, Hung Thinh, and Kim Oanh.
Nguyen Thanh Son, general director of Nam Long Land under Nam Long Group, said that many brokerage companies and real estate developers in Ho Chi Minh City are gradually shifting their focus to neighbouring provinces, including Dong Nai.
“The large land fund in Dong Nai helps investors develop urban areas with comprehensive planning,” Son said. “These projects include a wide range of products ranging from housing to retail, education, and entertainment to meet residents’ needs for living, studying, working, playing, and shopping.”
