In the master plan for socio-economic development of Long An province to 2020, with a vision to 2030, Duc Hoa district will be planned as a service center in the Northeast region and part of the urban development plan – general industrial province. This is one of many “motivation” promoting the real estate market in this area in the future.
The real estate push lies in the story of infrastructure?
It can be said that, besides the East, the development of the inter-regional infrastructure system in the southern provinces is being “aggressively invested”. In which Long An is the gateway of Mekong Delta, connecting directly with Ho Chi Minh City and the East. This is also a province in the southern key economic region, which is being invested by the province in terms of transport infrastructure and socio-economic development.
According to experts, Long An borders with a length of nearly 100 km around the West of Ho Chi Minh City, with a relatively large land fund, suitable for developing satellite towns to serve the strategy of expanding population to the outskirts of Ho Chi Minh City. Therefore, the development of satellite cities is becoming a strategic target to expand the population, meeting the housing needs that are being promoted in this area.
At the recent event, Mr. Nguyen Thanh Ngoan, the Deputy Director of Long An Department of Transport, said that Long An province currently has 3 key projects that are being implemented including: Ho Chi Minh City – Tien Giang – Long An driving shaft; Road 830 Duc Hoa – Ben Luc axis. The Duc Hoa – Ben Luc section invested in the form of BOT has collected fees (The Ben Luc section to Highway 50 is going to phase 2. The section of National Highway 50 to Tan Tap port is expected to open in April 2020); Long An City’s ring road consists of 4 sections, Long An invests in two sections. The remaining two segments will call for investment. Expected that in the third quarter of 2020, it will be completed.
Mr. Ngoan also informed that the province has currently deployed a number of key routes to avoid congestion, including plans to implement some works to renovate intersections, build flyovers and install traffic separation. …, strengthening infrastructure investment activities for the region in the near future.
Another “push” of infrastructure in this area is to expand Tran Dai Nghia street (in Binh Chanh district), connect to Hai Son industrial park with a total investment of 6,640 billion dong proposed by Ho Chi Minh City. The expansion of this project will help share the traffic pressure with provincial road 10, the transport axis connecting Duc Hoa industrial park – Sing Viet urban area – Le Minh Xuan industrial park as well as connecting with Ho Chi Minh city highway – Trung Luong via the Tan Tao – Cho Dem expressway.
Compared to other districts, Duc Hoa district has the advantage of bordering Ho Chi Minh City, so it also inherited many favorable infrastructure and economic factors of the city. From the central area of Duc Hoa district to the boundary of Binh Chanh district (Ho Chi Minh City), it only takes about 8 minutes to follow Provincial Road 10. Many transport infrastructure projects are also focused on investment such as HCMC highway – Trung Luong, National Highway 1A, National Road N2, Ben Luc – Long Thanh highway ….
Ho Chi Minh City – Trung Luong Expressway is an existing transport project from 2010 to the present, helping to shorten the distance and time from West to East. In the near future, Ben Luc – Long Thanh Expressway will also be completed and put into operation, moving from Mekong Delta to Dong Nai and Vung Tau and it will not need to go through too many roads in Ho Chi Minh City, not only reduces the load for the city but also helps traffic more convenient. In particular, the road connects Long An and Dong Nai – the two provinces developed many large industrial parks to help trade and save more time and money. The highway is expected to open by the end of 2019.
Ms. Dang Thi Thuy Ha, the Deputy Director of Long An Construction Department, said that in recent years, Long An has recorded high CPI and increased budget revenue. This is the result of receiving many projects, especially the real estate market began to grow strongly. The province is also ready to welcome businesses and investors. There have been many investors participating in Long An market such as Vingroup, Van Thinh Phat, Becamex, TDH Ecoland … the story in the province now is to promote connected transport infrastructure to attract strong cash flow of investors in long term.
“To solve this issue, the province will focus on investing in big projects, paying attention to building infrastructure to solve the shortcomings of Long An province,” Ms. Ha emphasized.
Obviously, the story of connecting infrastructure between Long An and Ho Chi Minh City has been focused on accelerating by the local authorities at this stage, which is the premise to have more motivation for growth and bring opportunities. for real estate investors.
Long An real estate has plenty of room for development
According to experts, not only does infrastructure affect real estate growth, but also the premise of soft prices, the trend of moving residents has created a huge push to the satellite housing market.
Since 2017, Duc Hoa real estate (Long An) has attracted the attention of many investors. Large real estate businesses and individual investors continuously buy land here to build housing projects for long-term investment and to buy and sell when land prices rise. Previously only large-scale industrial park projects, now has the presence of many large and small real estate projects with all types of land plots, apartments, office apartments, inter-houses, townhouses, commercial houses and villas.
Currently, although the transaction as well as the supply has “dwelled”, plus the cautious sentiment has been much influencing the decision to buy real estate of customers. This is also the general situation that is taking place in the real estate market. However, according to experts, looking at the potential of infrastructure and the project itself to see, the demand and price increase range is still quite good in the project with complete infrastructure and legal. The liquidity of the project depends heavily on these factors. Especially, at the end of the year is also the time when experienced investors look for projects to take profits and make profits.
Clearly, the potential of the Long An market is clear. The problem is that customers look at all aspects of the project to evaluate and decide to “go down”. With a satellite market with a lot of potential for growth like Long An, according to experts, the profitability from the project is still very much, especially the projects that have Land Use Rights Certificate, beautiful locations and adjacent to Ho Chi Minh City as well as the profit margin is quite good. With a market that is focusing resources to develop connected infrastructure as well as socio-economic, this is an opportunity for investors to grab and wait.
Mr. Pham Lam, the Chairman of DKRA Vietnam said that, if Binh Duong and Dong Nai had large and scarce land fund, Long An’s advantage would be that the land fund was still abundant. Recently, some real estate businesses have been interested in the market here. The demand of this market is forecasted to remain high. Therefore, the development of housing, urban areas in the long term will be favorable.
Commenting on Long An Real Estate Market in the near future, Mr. Lam said that the rule of “water flows to the low place”. Areas with potential for development will attract investors. Long An real estate is still attractive in the next 3 years. Especially, with the advantage of water, the province should take advantage of the green terrain to develop urban projects. If this is done, Long An Real Estate will be very attractive to investors.