INFRASTRUCTURE BOOSTS DONG NAI PROPERTY MARKET

The property market is booming in the southern province of Dong Nai of thanks to its excellent infrastructure. The local Department of Construction said 250 property projects were developed recently, 15 by foreign investors and involving a minimum investment of US$10 million.

Some that had stalled in 2008 have been revived, it said.

Land and ‘ecological’ villas are the most popular developments, especially near the proposed Long Thanh International Airport.

The projects here include Thac Giang Dien (Giang Dien Fall) Resort, Sakura ecological urban area targeted at expats and The ViVa, another urban area.

Tri Thuc Tre newspaper reported that LDG company plans to develop several projects on a combined area of 150ha, including Premium Eco Village, Diamond Valley, EcoLife Village, and expand Suoi Mo Tourism Area.

This year the company will also begin construction of The Viva Square, a shopping mall.

Other developers like Kim Oanh and EximRS plan to continue investing in the province. Last year Kim Oanh developed RichLand City and EximRS Company was a seller of the Long Hung urban area project.

Amata Group is completing procedures for two projects in Long Thanh District.

In Long Hung District, an urban area called Waterfront will be developed jointly by Vietnamese and Singaporean investors at a cost of $750 million.

VinaCapital Group and DIC have resumed the 200ha, $400 million Hoa Sen Dai Phuoc project in Nhon Trach District.

The booming market has also sparked off M&A deals. Thanh Thanh Cong Group for instance has bought a 35 per cent stake in Tin Nghia Company, one of the biggest real estate players in the province.

Prices rising

With the market gathering momentum, prices are rising.

Brokers said the prices of land and houses in Bien Hoa city and the districts of Long Thanh, Nhon Trach and Vinh Cuu have risen by 10-20 per cent depends depending on how close they are to the developing infrastructure.

Developers expect prices in places close to infrastructure construction to keep increasing.

Furthermore, the economy has been recovering for the last two years and bank interest rates are steady, meaning demand for property is rising quickly, they said.

Nguyen Thanh Lam, chairman of the Dong Nai Property Association, said the market in Bien Hoa, Trang Bom, Long Thanh, Nhon Trach would continue to boom through this year.

The Dong Nai property market got a boost with the construction of the HCM City – Long Thanh – Dau Giay Highway, which has cut the distance to the south-eastern provinces.

Besides, National Highway 1A connecting Dong Nai with HCM City has been widened.

In 2015 the market began to react to the information that Long Thanh International Airport will be developed, and it was approved last year.

Last July the HCM City People’s Committee petitioned the Government to build the Cat Lai Bridge 2 between District 2 and Nhon Trach in Dong Nai, which will help reduce the distance by 10km.

Source: VIR

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