18 - 11 - 2020
IN KIEN GIANG, AFTER THE EXCITING PERIOD OF PHU QUOC MARKET, INVESTMENT MONEY FLOWS TO HA TIEN, RACH GIA. THE GROUND IN SOME REGIONS FROM 5 - 7 MILLION/M2 HAS INCREASED TO 10-20 MILLION/M2 IN THIS PERIOD AFTER ABOUT 2 YEARS.
New destination for real estate investors
Besides markets such as Long An, Can Tho, Kien Giang, Dong Thap, Hau Giang ... are becoming new destinations for many real estate giants, because of their large land bank and huge market development potential. In particular, in Kien Giang, besides the bustle of the Phu Quoc market for a long time, Rach Gia and Ha Tien are becoming potential new lands. These emerging markets are a new land attracting capital flows of many real estate businesses with a series of large-scale projects from apartments, townhouses to coastal grounds…
As noted, in Kien Giang, after the exciting period of the Phu Quoc market, the investment wave began to shift to Ha Tien and Rach Gia. The foundation soil in some areas from 5-7 million VND/m2 has increased to 10 -20 million VND/m2, calculated within 1.5 years. However, this is still a fertile land for real estate investors when the room for price increase is still high in the future.
Similarly, Ben Tre, Dong Thap, Hau Giang ... are also markets that both businesses and buyers are interested in because there is still room for development. Currently, land prices in most of these areas have increased by about 30-35% compared to 2016. Therefore, the real estate industry is shifting their capital flows to provinces with primitive markets, soft land prices and high room.
As noted, in Kien Giang, after the exciting period of the Phu Quoc market, the investment wave began to shift to Ha Tien and Rach Gia.
Meanwhile, in long-term developed markets such as Long An and Can Tho, land prices have grown quite strongly in recent years. For example, in Can Tho, projects near the city center and near Big road have an average price of 40-60 million VND/m2. The project is located in the inner layer, adjacent to Small Road with the price from 19 -30 million VND/m2. Similarly, in Long An, the current price has ranged from 21 to 26 million VND/m2.
As reported, from 2018 to now, a series of "big guys" in the real estate industry such as VinGroup, Muong Thanh, Van Phu Invest, Phu Cuong Group, CEO Group, Sun Group, Kita Invest Group, FLC Group, Thu Duc House , Nam Long Group, LDG Group, T&T Group, DIC Group, CNT Group… have been landing in the Southwest market with many projects in different segments. Along with investment activities, transactions also began to "heat up" clearly in this market.
It is no coincidence that emerging real estate markets attract the attention of real estate giants and individual investors. Statistics of Ha Tien city said that currently, the whole city has 200 projects that are being started and are about to start. Total investment capital tens of thousands of billion dong. Highlights include Bai No port (419 billion), Mui Nai - Nui Den tourist area (300 billion), Ta Lu - Mui Nai tourist resort (100 billion), Nam Ha Tien tourist area (918 billion), …
In terms of price level, Ha Tien has significant advantages as it is located at the tourist gateway of Phu Quoc. Therefore, the real estate prices here are extremely competitive. While the selling price of coastal real estate in long-standing coastal cities has fluctuated at 80-100 million VND/m2, in Ha Tien, right on the coastal road in the city center, currently only ranges from 10-13 million VND/m2 for the sea view area, 17-18 million/m2 for the main road frontage and about 18-20 million/m2 for the sea-front, many times cheaper.
Attraction from transport infrastructure
According to the Vietnam Association of Real Estate Brokers, despite being affected by the Covid-19 pandemic, the market in the Southwest provinces began to be active again in the third quarter of 2020. Especially after the Government approved the investment in a series of highways and new bridges connecting Ho Chi Minh City and shortening the distance, the time to the Western provinces has created excitement for the real estate market here. Not only traditional places, investors started to pay attention to emerging and potential markets for tourism development where prices are still soft, room for price increases is still large.
At the Conference to evaluate the outcomes of the Resolution 120/NQ-CP on sustainable development and adaptation to climate change of the Mekong Delta in June, the Ministry of Planning and Investment proposed to allocate 45 trillion VND (equivalent to two billion USD) to this area in the next 5 years. As stated by the Ministry of Transport, in the near future, focus on completing investment projects in transport infrastructure in the region that have been allocated capital.
On roads, national highways and highways with horizontal and vertical axis will be completely built to connect Ho Chi Minh with the West, including: Trung Luong - My Thuan - Can Tho expressway; Soc Trang - Can Tho - Chau Doc; Ha Tien - Rach Gia - Bac Lieu... and upgrading National Highways 30, 53, 54, 57, 61.
In addition, the Ministry of Transport will complete the Ring Road 3 and Ring 4 in Ho Chi Minh City, connecting the city with the Southeast provinces and the Mekong Delta.
In general, during the period 2017-2020, there are 11 expressway projects that have been and are expected to be completed with a total length of 654km from north to south. These are key projects contributing to accelerate the urbanization process in the western provinces and creating opportunities to attract real estate investment in this area.
Most recently, on October 15, the Lo Te - Rach Soi highway was opened. This is considered the second highway to the West with 70km long, 17m wide, built according to the highway standard of Class A, with 4 lanes for cars at a speed of 80km/h. The first point connects to Vam Cong bridge, TP. Can Tho. The end point is at Chau Thanh, Kien Giang, connecting with the Rach Gia bypass project. According to calculations, the expressway will help the area from Rach Gia to Can Tho temple to 50 minutes and and to Ha Tien takes about 2 hours instead of 3 hours like before. In parallel, National Highway 80, the section from Kien Luong town to Ha Tien city's international border gate, was also constructed in early June this year, with a speed of 60km/h, expected to open to public traffic in the first quarter of 2021.
Experts stated that although the new areas of the Southwest region are not outstanding in terms of economic and social factors, they still have the potential for infrastructure development as well as the province's orientations have been creating a clear premise to attract large businesses looking for investment opportunities.
In particular, the real estate market has shown positive movement in recent years. With well-planned projects, the synchronous infrastructure records the project's liquidity quite well. Like other markets, the majority of investors come from HCMC are looking for long-term investment opportunities in the Southwest region.
According to most industry experts, the post-Covid-19 real estate market does not have many favorable conditions for swing traders. Areas with advantages in terms of land fund, space, regional connectivity, coastal areas ... promise good profits when the infrastructure is completed in the future.
Mr. Vo Huynh Tuan Kiet, Director of CBRE Vietnam's housing division, said that the large demand for housing continues to increase while the city is limited in licensing new projects, the cash flow trend from investors in Ho Chi Minh City to neighboring provinces is becoming stronger. If the infrastructure is well connected and localities develop new economic zones associated with the development of large-scale urban areas in satellite urban areas, the profitability of these projects will be highly effective.