The City’s New Wave: Unveiling the Dynamic Duo for the Real Estate Market’s Success

Located along National Highway 51, about 60km from Ho Chi Minh City, Phu My has been a real estate hotspot in Ba Ria – Vung Tau and the southern region of Vietnam. Phu My’s real estate market has experienced multiple price hikes and attracted investors’ attention whenever positive news about its infrastructure and planning surfaced. However, for over two years, amidst fluctuations in the southern real estate market, transactions in Phu My also slowed down.

It was not until early 2025 that the news of Phu My officially becoming a city (from March 30, 2025) according to Resolution 1365/NQ-UBTVQH15 truly reignited the local real estate market. The city status is an important catalyst for accelerating public investment in infrastructure and physical facilities, upgrading the urban landscape, attracting more investment, and accelerating urbanization. Residents will also have better access to high-quality education, culture, and employment opportunities.

Riding on this news, the real estate market in Phu My became vibrant again at the beginning of 2025. Land and apartment projects in the area witnessed a significant increase in buying interest compared to pre-Lunar New Year levels.

For instance, the CityMark Residence apartment project by Tumys Homes, despite its recent entry into the market in early 2025, has garnered positive attention. The project’s timing, coinciding with Phu My’s city status announcement, along with its prime location on National Highway 51 – Nguyen Trai and proximity to the administrative center, industrial parks, and seaports, has attracted continuous customer inquiries and site visits since Phu My became a city in early March 2025.

The project’s appeal also stems from it being the first and rare high-end apartment development in Phu My at this stage. With the building already topped out and expected to be handed over in Q1/2026, its potential for immediate rental yields is a significant advantage for investors. Given the limited supply of high-end properties, CityMark Residence apartments are anticipated to set new rental benchmarks during the positive growth phase of Phu My’s infrastructure, economy, and society, as well as that of Ba Ria – Vung Tau province.

According to urban development historians, Ho Chi Minh City has recently shown increased interest in maritime economic development. With its proximity to the sea (approximately 50km) and the inclusion of Can Gio, the city now boasts a 23km coastline. In contrast, Ba Ria – Vung Tau boasts over 300km of coastline, sharing a border with Can Gio and offering a seamless connection.

If Ho Chi Minh City and Ba Ria – Vung Tau together possessed more than 320km of coastline, they would have an extensive maritime space to meet the requirements for promoting maritime services, tourism, research, and education. The merger would also leverage the infrastructure and socio-economic advantages of both areas.

Moreover, Phu My is the only city-port in southern Vietnam, strategically located along the Thi Vai – Cai Mep river, home to numerous industrial parks and deep-water seaports in the province and the region. The vision is for Phu My to become a significant transshipment hub and a free trade zone globally.

Furthermore, according to Decision 1629/QD-TTg by the Prime Minister on approving the Master Plan for Ba Ria – Vung Tau province for the 2021-2030 period, with a vision towards 2050, the province aims to meet the criteria for becoming a centrally-governed city by 2030. The areas expected to form this centrally-governed city include Vung Tau, Ba Ria, Phu My, Long Dien, and Long Hai, which are currently developing urban areas.

Evidently, the continuous stream of positive news within a short period has propelled the real estate market in Phu My, Ba Ria – Vung Tau, and the province as a whole into a “race” at the beginning of 2025. Investors are eager and enthusiastic about the potential merger, believing that it will lead to socio-economic development and subsequent real estate price increases.

Moreover, the market is benefiting from multiple positive factors, including public investment, a new land price framework, and more, further boosting buyer confidence. Real estate in some former hotspots has witnessed a resurgence in demand, although market demand in the region has not yet recovered to the levels seen in 2019-2021.

In reality, this is not the first time that Phu My’s real estate market (Ba Ria – Vung Tau) has been bustling with activity. In 2019, rumors of the area becoming a city sparked market interest, and many investors made substantial profits by anticipating this development. Today, as buyers return to the “race” to anticipate the merger of provinces, they are also increasing their profit margins, especially as the market enters a new growth phase.

Recently, in the north of Vietnam, when proposals to merge provinces and cities were made, land prices in potential areas showed signs of increase. In some localities like Vinh Phuc, Bac Giang, Hung Yen, and Phu Tho, real estate prices rose by 5-15% within a few weeks. Historically, whenever new planning information emerges, real estate prices in related areas tend to surge in the short term. Although the merger of southern provinces and cities has not been officially announced, the market’s heat became apparent in early March 2025. Along with the impact of the northern market, expectations for southern real estate price increases may not be far off.

According to the Vietnam Association of Real Estate Brokers (VARS), the merger of provinces and cities initially positively impacts the real estate market. It is understandable that investors would want to get ahead of such developments. However, instead of solely focusing on planning information, investors should thoroughly research the area’s price levels and check the planning to minimize risks and maximize growth potential.