Real-estate enterprises flocking to smaller cities

A view of Nha Trang City. The south-central city is among localities becoming more attractive to real estate investors. Photo abay.vn

Earlier this month, Vingroup proposed to build a new administrative centre in the central Thanh Hoa Province.

According to the plan, Vingroup would build a 25-storey commercial centre spread over 5,500 sq. metres and a three-storey commercial building on an area of 44,740 sq. metres at the site of the existing administrative centre in the province's Dien Bien Ward.

Vingroup committed that the project would be built according to requests made by the Thanh Hoa People's Committee to convert it into a high-grade urban area. It completed a design for submission to the provincial authorities.

If the plan is agreed upon, Thanh Hoa would become one of first two provinces in Viet Nam to have built a complex that includes a commercial centre, hotels and pedestrian mall for tourists. The group said the project would be completed in February 2016.

Last July, FLC Group had also started the construction of a residential complex in the province with a total investment of VND1.2 trillion (US$57 million).

This project would include a trading and service centre and apartments spread over 16,022 sq. m in the centre of the city.

The project is expected to supply 400 apartments with an area between 45 and 100 sq. m per unit.

In addition, the group also signed a memorandum of understanding for investing in other market segments in the province.

The Da Nang, Nha Trang, Quang Ninh, Ninh Binh and Thanh Hoa provinces have become more attractive for big real-estate companies during recent years.

However, property developers have been careful about penetrating new markets.

Nguyen Quoc Hiep, chairman of GP Invest Company's management board, told vnexpress.vn that the company had decided to invest in an urban area in northern Phu Tho Province because of its central location.

Hiep said the land clearance fund and completed infrastructure would help businesses in reducing investment.

A representative from Thanh Dong Property Investment Company, which has invested in an urban and tourism area in the Hai Duong and Ninh Thuan provinces, said harsh natural conditions had affected construction progress despite active support from local authorities.

Tran Duc Dien, the general director of the Max Viet Nam Company, which has several ongoing projects in the Nha Trang, Da Nang, Ha Long and Quang Ninh provinces, said a lack of professional marketing staff in these provinces had led to difficulties in making sales.