Real estate 'golden triangle' heats up

April 24, 2024 | 15:25
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The 'real-estate fever' in the 'golden triangle' of Ho Chi Minh City-Binh Duong-Dong Nai has been attributed to Ho Chi Minh City's price pressures and the building of key transportation infrastructure developments, with many new projects that connect the southeast economic region with other areas implemented since the start of the year.

These include the Ho Chi Minh City-Moc Bai Expressway project phase 1, with a total investment of about $870 million and a length of about 50km. The project is being urgently reviewed by the Ministry of Planning and Investment (MPI) with efforts being made to start construction before April 30.

The expressway, starting in Binh Duong and ending at the border with Binh Phuoc province, is scheduled to begin construction on September 2, with a total investment of $725 million. Additionally, highways connecting Bien Hoa-Vung Tau, Dau Giay-Tan Phu, and Tan Phu-Lien Khuong are also under construction. These projects should serve as catalysts for future real estate growth in the south.

Real estate heat in the golden economic triangle area

Ngo Quang Phuc, CEO of Phu Dong Group said, "Venturing further from the city to find affordable housing in a nice, clean environment is becoming increasingly common. However, not every project attracts buyers, and only those located in areas with decent infrastructure, connectivity, and amenities are being noticed."

In Binh Duong, Phu Dong Group is preparing to announce the Phu Dong Sky One project in Di An city, with an average price of above $1,333 per square metre, with handover expected in December 2025. Picity Sky Park is another proposed development for this area.

Danh Khoi Group will launch phase 2 of its Astral City project in Thuan An city in the second quarter of this year. Further out, in the new city of Binh Duong, CapitaLand commenced The Orchard project on February 28, a component of the Sycamore urban area.

The formation of the Ho Chi Minh City-Long Thanh-Dau Giay Expressway corridor has driven the development of the real estate market in Dong Nai, where the supply of apartments is still limited, and where buyers predominantly seek plots of land and town houses.

Dong Nai People's Committee issued a plan on April 10 to auction land use rights for 2024, meaning the rights to use 18 land plots of over 470 hectares and valued at $212.5 billion will be auctioned. The plots are located in Bien Hoa city and the districts of Long Thanh, Trang Bom, Cam My, and Thong Nhat.

Another reason for the wave of real estate projects in Binh Duong and Dong Nai is the fact that the Ho Chi Minh City market is under tremendous pressure, meaning buyers are being priced out. According to a real estate market report released by Savills in January, Ho Chi Minh City no longer has properties priced below $83,300 per unit, with 90 per cent of transactions falling within the range of $83,300-$208,300.

"Between 2024 and 2026, we expect the majority of apartments being supplied will focus on the $208,000- $417,000 segment. Therefore, homebuyers in Ho Chi Minh City may consider shifting their purchases to properties in neighbouring areas such as Binh Duong, Dong Nai, and Long An, where prices are more affordable," said Giang Huynh, deputy director and head of the Market Research Department at Savills.

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By Hazy Tran

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