4 - 8 - 2020
In addition to markets such as Long An, Can Tho, Phu Quoc, and recently Ha Tien, Rach Gia are new unknowns in the resort real estate market in the Southwest region.
What does Southwest real estate have?
As reported, in addition to the traditional markets with outstanding development in real estate over the past time, the Southwest region is emerging several new areas that attract investors due to great potential in infrastructure, tourism development, and affordable prices.
Discussing about the development of the Southwest's real estate market in general, Long An has a lot of potential as being adjacent to Ho Chi Minh City; Can Tho, a central city, forming modern urban areas; Phu Quoc is known as the capital of resort real estate. These are the 3 "hottest" lands of the Southwest real estate market, named quite a lot in the investment wave so far.
In addition, recently the Southwest region has appeared with several new destinations. The first is Ha Tien city. According to experts, Ha Tien real estate is noticed since, besides Phu Quoc, Ha Tien is the only mainland city in the Southwest region that strongly develops sea tourism. From the beginning of 2019, this area began to be mentioned a lot when CNT Group implemented a series of high-end real estate projects to excite the market. Moreover, there are big names such as Ha Do, Vingroup, and Tran Thai 'pouring in' to change the market's appearance.
In the second half of 2019 and the beginning of 2020, Vi Thanh City (Hau Giang Province) was also astonished by the appearance of Cat Tuong investor. It is known that the urban area deployed by this unit has continuously recorded good absorption in the primary market.
The wave of "expanding" investment to new lands still has full potential
The 2019 Kien Giang Investment Promotion Conference called for investment in 118 projects in different fields such as agriculture, tourism, industry, commerce, transportation, education, and environment... By the middle of 2019, this province has attracted a total amount of committed capital of over 45 trillion VND. Therefore, in recent years, Kien Giang real estate market is gradually polarizing, and the investment wave tends to spread to Ha Tien and Rach Gia. Which, Ha Tien is a potential destination for marine real estate. In particular, the low-priced coastal land segment is attracting special attention from investors. Not to mention, Phu Quoc is still a potential market, but with drastic regulations on plot separation and at the same time the price has pushed up, many Phu Quoc investors are tending to move to Ha Tien - an adjacent location with a lower price.
Mr. Le Quoc Anh, Director of the Department of Construction of Kien Giang province, said that the real estate market in this province is not only thriving in Phu Quoc but also taking place in three other areas: Rach Gia city, Ha Tien city, and Kien Luong district. From a business perspective, Mr. Tran Dao Duc, Deputy General Director of CEO Group, also commented that Kien Giang, especially Phu Quoc and Ha Tien, has a lot of potential for resort real estate development.
Records show that, from the beginning of 2019, Phu Quoc investors have shown signs of moving to the periphery in search of a clean land fund right after Ha Tien is officially moved as a city. By the beginning of 2020, Ha Tien real estate continues to be busy with high-quality infrastructure information. Specifically, the Lo Te - Rach Soi highway connecting Can Tho to Rach Gia (Kien Giang) will open to traffic in September.
Highway 80 (15.5 km long) is under construction to expand the section from Kien Luong to Ha Tien city, expected to be completed in the first quarter of next year. When put into use, these two routes will shorten the distance from Can Tho to Ha Tien to 2 hours by car instead of 3 hours. At the same time, it helps to connect Ha Tien conveniently to the southwestern provinces. This is a premise for the city to grow tourism and welcome investment. Additionally, the Ha Tien - Rach Gia - Bac Lieu expressway and My An - Cao Lanh highway have also adopted investment policies to encourage the real estate market here.
In terms of tourism development, Ha Tien is a potential location but has not been commensurate with the investment so far. Realizing that great power, the development space in marine real estate is wide open, and several large investors come to exploit this market. According to businesses, when the market is in its infancy, long-term growth opportunities are attractive. It is known that this place welcomes nearly 3 million tourists a year, is expected to reach 4.4 million by 2025, and reaches class 2. This is the premise for the resort real estate market to develop in the middle - long-term.
As recorded, another advantage of this area is the reasonable price level compared to others in the market. According to surveys, the land prices at the beach frontage and Ha Tien city center are around 20 million VND/m2, while the inner areas are lower.
Compared to the adjacent location, the land price here is quite attractive to investors. That is also the reason why investors tend to move to this area and expect a good price increase in the future.
It is forecasted that with the development of transport infrastructure, tourism potential, and fair prices, Ha Tien real estate will be a potential new destination along the southwestern coastal strip.