Real Estate Business Law 2023: Key Insights
Effective January 1, 2025, the Real Estate Business Law 2023 prohibits the transfer of land-use rights to individuals for self-construction of houses and isolated land sales within the urban areas of special, type I, II, and III cities and districts, as well as in cases where land-use rights have been auctioned for housing construction projects according to the Land Law.
For other areas, the provincial People’s Committee will determine specific zones where project investors are permitted to transfer land-use rights with existing infrastructure to individuals for self-house construction, based on local conditions.
Under this regulation, three regions in Ba Ria – Vung Tau will be prohibited from isolated land sales: Vung Tau City, Ba Ria City, and Phu My Town. Notably, Vung Tau City is among the 22 type I cities in the country. It serves as the economic, financial, cultural, and educational hub of Ba Ria – Vung Tau province and is a key economic center in the southeastern region.
According to the approved planning orientation, Vung Tau is designated as a regional center for commercial services; a leading coastal tourism and resort destination; a national hub for port services and oil and gas services; and an international maritime trading gateway.
Ba Ria City is one of the 36 type II cities in the country that will be subject to the isolated land sale ban. Ba Ria City is located approximately 90 km northeast of Ho Chi Minh City. It borders Chau Duc District and part of Phu My Town to the north; Vung Tau City to the south; Long Dien District and Dat Do District to the east; and Phu My Town to the west.
Ba Ria is a crucial road traffic hub in Ba Ria – Vung Tau province, connecting urban areas along National Highways 51, 55, and 56, Provincial Roads 44A and 52.
According to the Ba Ria – Vung Tau provincial planning for 2026 – 2030, Ba Ria will expand its administrative units by acquiring parts of Phu My Town to meet the required land area and population size for a provincial-level city. The city aims to develop and meet all the criteria for a type II city as per the urban classification regulations.
Post-2030, Ba Ria will be centrally located in the proposed Ba Ria – Vung Tau City, directly under the Central Government.
Phu My Town is situated in the western part of Ba Ria – Vung Tau province, covering an area of approximately 334 hectares. It lies along National Highway 51, about 60 km from Ho Chi Minh City, 40 km from Vung Tau City, and 20 km from Ba Ria City.
Apart from its proximity to major urban centers, Phu My also benefits from a well-connected transportation infrastructure that is both operational and under development.
These include inter-regional routes such as National Highway 51, the Bien Hoa – Vung Tau Expressway, Road 911B, Phuoc An Bridge connecting to Nhon Trach (Dong Nai), Ring Road 4, and a riverine transportation network.
Although not directly connected, Phu My is also close to other critical infrastructure projects such as Ho Chi Minh City Ring Road 3, Ben Luc – Long Thanh Expressway, Ho Chi Minh City – Dau Giay – Phan Thiet Expressway, and Long Thanh International Airport.
As per the planning, Phu My Town will become a provincial-level city by 2025. It will transform into a seaport city, a specialized industrial center, a port and maritime industry hub, a logistics services hub, and a key port transportation hub.
Regarding the real estate market in Ba Ria – Vung Tau, according to Batdongsan.com.vn’s January 2024 report, despite a 15% decline in the number of listed properties, the demand for real estate in the province increased by over 5% in January 2024. Notably, land plots witnessed the most significant change in transaction demand during the first month of the year and have also shown the most significant growth in purchasing power over time. In contrast, other property types, such as apartments, private houses, and vacation villas, remained relatively stagnant.
The demand for land plots in Ba Ria – Vung Tau rose by more than 16% in the first month of the year. Besides land plots, private houses in the province also experienced a 2.8% increase in customer interest compared to the previous month. Vacation villas in Ba Ria – Vung Tau showed no change in demand, while condominiums declined by 11%.
Remarkably, the surge in interest for real estate in Ba Ria – Vung Tau over the past month has been primarily concentrated in Dat Do District. Data from Batdongsan.com.vn reveals a 68.7% increase in demand for real estate in Dat Do District during January, with most transactions involving residential land and subdivided land plots. The price range for these properties is from 600 million to 1.2 billion VND, with smaller lot sizes.
Additionally, Chau Duc District saw an 11.2% increase in search interest for land plots in the early days of the year. Ba Ria and Xuyen Moc recorded moderate increases in land plot search volume, at nearly 3% and 4.4%, respectively.
In contrast, the demand for real estate in Vung Tau City, Phu My, and Long Dien remained relatively unchanged, with search results decreasing by an average of 2-7% compared to December 2023.
Explaining the positive recovery of the real estate market in Ba Ria – Vung Tau, particularly in Dat Do District’s land plots, experts from Batdongsan.com.vn attribute it to the proposed airport project in Dat Do District, which has sparked a wave of land investments in the area.
Previously, the Ministry of Planning and Investment issued an official dispatch seeking feedback on the investment project to construct Dat Do Airport. The project is expected to be developed in Loc An and Lang Dai communes, Dat Do District, Ba Ria – Vung Tau province.
Dat Do Airport is primarily designed as a dedicated airport for general aviation, handling passenger, luggage, cargo, and mail transportation (excluding public transportation). Given its proximity to the Long Thanh – Tan Son Nhat airport cluster, Dat Do Airport is also expected to serve as a backup for civil aviation aircraft in emergency situations.
Furthermore, several infrastructure projects are being developed to support tourism in the area, including: a coastal road connecting Long Dien District and Xuyen Moc District; Provincial Road 44a linking Phuoc Hai Town with Long My and Phuoc Hoi communes; and an inter-commune road connecting Loc An commune and Phuoc Long Tho commune. Notably, in June 2023, Ba Ria – Vung Tau commenced the expansion and upgrade project of the 994 coastal road spanning nearly 77 km, with a total investment of over 6,500 billion VND.
In early December 2023, the real estate market in Dat Do District witnessed renewed activity after a period of stagnation. While transactions were modest compared to earlier periods, investors’ interest in the market had improved, indicating a return of buyer confidence. In areas with high infrastructure potential and new planning, investors have been quietly acquiring properties in anticipation of a price increase cycle in the near future.
However, according to Batdongsan.com.vn’s assessment, it is unlikely that there will be a land rush or a surge in land prices this year. Despite the improvement in search volume and transactions, the activity remains localized and primarily driven by long-term investors. The overall real estate market in Ba Ria – Vung Tau still faces challenges and has not fully recovered. Therefore, for residential or investment purposes without substantial financial leverage, this is an opportune time to consider the Ba Ria – Vung Tau real estate market, coinciding with the completion of major infrastructure projects in the 2025 – 2026 period. However, speculative or short-term real estate investments are not recommended at this time.
