What Benefits Will the People Receive?
Recently, Deputy Prime Minister Tran Hong Ha signed Decision No. 790/QD-TTg approving the Planning of Binh Duong Province for the period of 2021-2030, with a vision towards 2050.
According to this Decision, Binh Duong will become a centrally-governed city by 2030 and will be one of the dynamic and comprehensive development centers of the Southeast Asian region.
With a vision towards 2050, Binh Duong is envisioned to become a modern regional and international center for industry, services, and urban development, as well as one of the main drivers of national economic growth, with its main growth engines being industry, services, and innovation, supported by a strong economic foundation and high competitiveness.
Massive investment in infrastructure development and socio-economic growth towards the goal of becoming a centrally-governed city by 2030 is expected to propel Binh Duong forward and bring benefits to its residents.
To achieve these goals, the Planning sets out five key tasks for Binh Duong, including: Regional collaborative development; ecosystem innovation; social and human resource development; building a green Binh Duong; and developing dynamic spaces.
Accordingly, Binh Duong will focus on coordinating with national development programs, those of the Southeast region, and neighboring localities to expand transportation connections. This includes links to seaports (Cai Mep Thi Vai and Can Gio); international airports (Tan Son Nhat and Long Thanh); and international border gates (Moc Bai in Tay Ninh and Hoa Lu in Binh Phuoc).
Additionally, Binh Duong will divide the province into dynamic space areas. Dĩ An, Thuận An, Thủ Dầu Một, Tân Uyên, and Bến Cát cities will focus on urban redevelopment, advanced technology development, community services, existing urban areas, and the development of regional, provincial, and urban public transportation networks.
Thus, with the goal of becoming a centrally-governed city by 2030, Binh Duong will boost investment in synchronous transportation infrastructure and the construction of new urban areas. The province must also provide convenient utilities and community services such as schools, amusement parks, hospitals, and parks, attracting investment from major real estate companies and creating a push for socio-economic development and increased job opportunities for its residents.
Real Estate Market Expected to Gain Momentum
Up to now, information about planning and infrastructure has always had an impact on the regional market landscape.
In fact, in 2023, when Di An City (Binh Duong) was upgraded to a second-tier urban area and aimed to become a first-tier urban area by 2025, the real estate market there started to stir.
Over the years, it is undeniable that thanks to the driving force of planning, infrastructure, and the province’s overall orientation, Binh Duong has attracted experts, engineers, workers, and office employees to work and live there in large numbers. This has stimulated the demand for housing. In the last three years, the Binh Duong real estate market, along with Ho Chi Minh City, has maintained a steady growth rate, ranking among the top regions in the South.
In recent years, the supply of affordable apartments in the Southern market has been mainly concentrated in Binh Duong. Source: DKRA Group
The information about the planning to become a centrally-governed city by 2030 is expected to continue to impact the Binh Duong real estate market. Many people expect the value and volatility of Binh Duong real estate to increase significantly in the future. This is similar to what happened in Thu Duc City (Ho Chi Minh City) when it was decided to become a city in 2021, immediately changing the real estate price level.
In 2017, many apartment projects in Thu Duc City were priced from 20-25 million VND/sqm, but now the lowest price is around 50-60 million VND/sqm, a level that is no longer easy to find.
Binh Duong remains a market with an abundant supply of affordable apartments in the Southern region.
Binh Duong has the advantage of being “next door” to Ho Chi Minh City, especially the Di An area, which is adjacent to Thu Duc City, so it has received positive attention from both real users and investors for many years. TS Su Ngoc Khuong, Senior Director of Savills Vietnam, once emphasized that Binh Duong has quite a few apartment projects, but with the province’s socio-economic development, the housing demand is still very high due to the increasing number of jobs.
According to Dr. Khuong, apartment projects priced between VND 1.5-3 billion per unit in Binh Duong remain a well-absorbed product line by real users and seasoned investors.
Recently, a number of apartment projects that have been or are about to be delivered in Di An, Binh Duong, such as Honas Residence by Hoang Nam (already delivered); Phu Dong Sky Garden by Phu Dong Group (to be delivered in Q4/2024); and The Rivana, have received positive attention from buyers.
Among them, the Honas Residence project, located on Binh Thung Street in Di An City (Binh Duong), has the advantage of soft demand at this stage, with a soft price from VND 1.4 billion per unit. Currently, Hoang Nam investor offers an attractive payment policy, with only VND 140 million, equivalent to 10% of the apartment value, customers can receive the house. At the same time, it provides many flexible payment methods suitable for all subjects such as installment payment within 12 or 36 months without interest. In addition, if bank loans are used, customers will be entitled to an interest rate grace period policy of 12 to 18 months, helping to reduce financial pressure on buyers.
Similarly, the Phu Dong Sky Garden project, located on An Binh Street, An Binh Ward, is being supported by Phu Dong Group with maximum support for buyers and investors through breakthrough sales programs. Typically, the policy of committing to rent back with a total value of up to VND 432 million in 3 years, equivalent to VND 12 million/month. Customers do not need to equip any more furniture besides the equipment provided by the investor for delivery. Not to mention, buyers also receive a thank-you gift of 5% on the total value of the apartment from the investor.
Savills expert believes that in terms of infrastructure and the equation of jobs, as well as community utilities, including schools, hospitals, and medical facilities, Binh Duong is doing very well and will continue to improve in the coming years. These are the pivotal factors to promote the real estate market, attract investors, and attract migrants.
If compared with Ho Chi Minh City, Binh Duong apartment prices are still one step softer. In the future, if Binh Duong promotes infrastructure and follows the right orientation, it will surely bring new development opportunities for the real estate market.
Real estate investors also expect that the approval of Binh Duong to become a centrally-governed city will not only be a driving force for socio-economic development but also create opportunities for Binh Duong real estate to grow, contributing to the completion of the urban appearance here.
However, to take full advantage of planning opportunities, investors must have appropriate plans and strategies for their projects. In addition to price, the story of legality and project quality must be guaranteed. At the same time, the government also needs to promote support policies and manage tightly to ensure the sustainable development of the Binh Duong real estate market in the future.
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