In a recent sharing session, Mr. Quang, a long-time real estate investor (currently living in Thu Duc City, Ho Chi Minh City), shared that he owns several properties in District 9 and Go Vap District of Ho Chi Minh City, as well as in Nhon Trach, Long Thanh, and Cam My of Dong Nai Province.
Recently, when information about the Long Thanh airport in Dong Nai Province emerged, accelerating its progress, and a series of infrastructure investments were made, his real estate attracted investors’ attention. Although the price only increased slightly compared to the purchase price (late 2021), the buying interest indicates that investors are returning to the market. Previously, he had advertised the properties for sale multiple times without success. “Now that I have managed to rotate my capital, I will wait for better market conditions to sell at a higher price,” shared Mr. Quang.
Another case is that of Mr. T., also from Thu Duc City, Ho Chi Minh City, who recently sold a 54-square-meter plot of land for nearly 3 billion VND. Mr. T. intends to continue dividing his capital and reinvesting in real estate in the outskirts of Ho Chi Minh City, following the “infrastructure wave.” However, finding suitable properties in potential growth areas is not easy. He and his friends are exploring several areas with information about airports, belts, and expressways.
Infrastructure is leveraging the liquidity of the southern real estate market. Photo: Ha Vy
Recently, the southern market witnessed a series of infrastructure investments in transportation projects, causing a stir in the real estate sector. The construction of Belt Road 3 in Ho Chi Minh City, the completion of the remaining sections of Belt Road 2, the announcement of the implementation timeline for Belt Road 4, and the expansion of multiple roads in the west and east of Ho Chi Minh City have all contributed to the improved liquidity of the real estate market in the city.
For the provincial market, the Long Thanh airport in Dong Nai Province is the most significant infrastructure highlight at this stage. The investment wave following the airport has been stirring since the first quarter of 2024. Several real estate projects near the airport are receiving more attention than in the previous phase. This interest is not limited to land and houses but also extends to the apartment segment. Investors are diverse, ranging from locals to those from nearby areas such as Ho Chi Minh City, Binh Duong, Ba Ria-Vung Tau, and some northern investors.
Long Thanh Airport is a large-scale infrastructure highlight in the provincial market near Ho Chi Minh City, impacting investors’ psychology. Photo source: ACV
For example, on Ton Duc Thang Street in the center of Hiep Phuoc, there is the FIATO Airport City apartment project by Thang Long Real Group, which is attracting significant interest. The project is located near Long Thanh Airport and is one of the few primary apartment supplies in the area with well-invested utilities. Construction has already started, and the developer is accelerating the progress to align with the airport’s completion timeline.
Recently, the People’s Committee of Long Thanh District, Dong Nai Province, handed over 100% of the land area to the investor for the construction of two transport routes connecting to Long Thanh Airport. At the same time, the resettlement of residents in the project area has also been basically completed. After receiving the land, the units are accelerating the construction of the two transport routes. The Long Thanh Airport has taken a clear shape, having recently mobilized nearly USD 2 billion in domestic capital. Issues related to capital, land, and materials have been resolved, significantly impacting the local real estate market.
According to a real estate exchange floor in Nhon Trach District, Dong Nai Province, although demand has not exploded, investors are paying attention to the information posted by brokers. The number of site visits has increased by about 40% compared to the first quarter of 2024. Among them, investors from Ho Chi Minh City account for about 30-40% of the total number of investors contacting the exchange floor.
The representative of this floor said that infrastructure information, especially the Long Thanh airport project, has a positive impact on investors’ psychology. Real estate near the airport is taking advantage of this opportunity to promote introductions, weekly mini-events, and internal programs to find customers. Some apartment projects that previously received little attention have now seen a significant increase in demand.
In addition to the actions of new investors, the existing infrastructure information also boosts the confidence of those who have already invested in provincial real estate. They tend to hold their investments, waiting for the market to improve, especially with the news that the amended Laws will take effect five months earlier than expected, creating expectations for real estate price increases in the coming period.
A notary office in Dong Nai is bustling again, indicating that investors are hunting for real estate in the context of visible transportation infrastructure. Photo: Ha Vy
The apartment segment near Long Thanh Airport is also receiving positive attention from buyers. Photo: Ha Vy
Savills’ report points out that in the first quarter of 2024, real estate in satellite provinces like Dong Nai and Binh Duong benefited from improved infrastructure and became direct competitors to Ho Chi Minh City.
Mr. Paul Tostevin, Director of Savills World Research, said that real estate investment opportunities are closely linked to infrastructure investment. There is a strong connection between infrastructure disbursement efforts and real estate development. Well-connected economic centers will attract highly skilled labor, create good business opportunities, and foster social growth. The implementation of a transportation or energy project will give confidence to developers and individual real estate investors, allowing them to proceed with their plans.
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