Industrial economy has long been a pillar in the development of Binh Duong’s real estate market. The history of Binh Duong since its establishment in 1997 shows that after about 10 years of re-establishment, the province identified the construction of infrastructure and the promotion of industrial development as the main focus. During the period of 2008–2010, Binh Duong’s industrial and urban real estate witnessed a transformation with the formation and operation of more than 30 industrial parks, the groundbreaking of the New City, and the expansion of residential and commercial areas.
Binh Duong’s New City
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Robust infrastructure development has been a key focus for Binh Duong, with a particular emphasis on attracting new generations of foreign direct investment (FDI). The province aims to become one of the most dynamic and comprehensive development centers in the country and the Southeast Asian region, driving the construction of synchronous, modern, intelligent, and sustainable socio-economic infrastructure and urban areas, according to Mr. Mai Hung Dung, Vice Chairman of the Provincial People’s Committee. Binh Duong’s infrastructure quality, as indicated by the 2022 PCI index, ranks third in the country with 64 points.
The planning for Binh Duong during the period of 2021–2030, with a vision towards 2050, emphasizes stronger regional and provincial linkages. To achieve a breakthrough in transportation infrastructure, Binh Duong is focusing on constructing expressways and developing urban rail systems, including metro connections to Ho Chi Minh City and other provinces in the key economic region of the South. Major projects such as Ring Roads 3 and 4, and the Ho Chi Minh City-Thu Dau Mot-Chon Thanh Expressway, along with cross-provincial transportation routes, will be expedited. By 2030, the province aims to have 43 routes, including 16 existing ones and 27 new additions. Additionally, the province is studying the investment in the construction of 12 urban rail routes by 2050, developing 18 inland ports, and considering allocating land funds for an airport in Dau Tieng district.
Binh Duong’s economic potential is geared towards sustainability. By 2030, the province is expected to have 42 industrial parks, including 29 existing ones, 4 under preparation for investment, 10 new ones, and 1 with a functional transition. During the period of 2021–2050, the province will add 5–6 new industrial parks and transform 7 industrial parks in Di An and Thuan An, covering a total area of approximately 25,000 hectares.
In the first nine months of 2024, the provincial economy grew by 7.05%, with total retail sales reaching over VND 255 trillion, an increase of 12.7%, surpassing the national average of 8.5%. Binh Duong attracted 1.6 billion USD in FDI, bringing the cumulative total to 42 billion USD. The province has established cooperative relations with 13 international provinces and cities, attracting many foreign experts to live and work there. In 2023, the province was recognized by the ICF as the world’s leading smart community, thanks to its development of smart infrastructure and urban areas, as well as its favorable business environment. With more than 52% of its population being immigrants, Binh Duong is increasingly affirming its position as an attractive destination for labor across the country.
The growth of high-quality housing demand among experts in Binh Duong is notable. According to Mr. Dinh Minh Tuan, Sales Director of Batdongsan.com.vn, the province’s real estate market has been developing in tandem with the growth of industrial parks. As the province positions itself as an industrial hub, it will attract more domestic and foreign experts to work and live there, generating a demand for housing. Mr. Luu Quang Tien, Deputy Director of DXS-FERI, noted that in the past, townhouses or service buildings were sufficient to meet the demand. However, with the rapid increase in the number of experts and the province’s economic development, there is a growing need for long-term housing, with some experts even bringing their families to live with them.
In the early 2000s, Binh Duong’s apartment market mainly served workers and low-cost housing. When industrial parks boomed during 2005–2007, high-end B and B+ projects appeared around VSIP and SetiaBecamex, catering to experts. During 2011–2016, many high-end projects from foreign investors were developed along Thuan An, Di An, Thu Dau Mot, and the New City, making the apartment market more diverse and vibrant. Notable projects include The Orchard Sycamore, a joint venture between Becamex IDC and CapitaLand (Singapore), and Artisan Park by Gamuda Land (Malaysia), which is oriented towards a smart city in Thu Dau Mot. Another example is the TT AVIO project, which offers nearly 2,000 apartments in Di An by a joint venture between Japanese companies Cosmos Initia (a member of Daiwa House Group), TT Capital, and Koterasu Group. This project is located near more than 28 large industrial parks, such as VSIP 1, Dong An, and Viet Huong, providing numerous work and living opportunities for residents working in these industrial areas.
At the recent event “Panorama of the Vietnam Real Estate Market in 2024 & Binh Duong Focus,” Mr. Oh Dongkun, General Director of Becamex Tokyu, shared that Binh Duong has consistently maintained a high economic growth rate and ranks third in the country in attracting FDI. Additionally, the province has the highest per capita income in Vietnam. Regarding the TT AVIO project, Mr. Masakazu Yamaguchi, General Director of Koterasu Group, stated that the project is located in Di An City, an area with a high population density and surrounded by industrial parks, providing local residents with income opportunities. Moreover, commuters to Ho Chi Minh City also find it convenient, making them potential customers with a substantial need for quality housing.
TT AVIO offers prices starting from VND 1.23 billion per unit, located near industrial parks, meeting the demand for high-quality housing for experts in Binh Duong. Photo: TM
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Commenting on the pricing of housing projects targeting experts in Binh Duong, Mr. Luu Quang Tien, Deputy Director of the Institute of Economic-Financial-Real Estate Research (DXS-FERI), noted that there has been growth in recent years. However, compared to Ho Chi Minh City, housing prices in Binh Duong remain competitive and accessible for foreign experts. “In my opinion, the housing demand of foreign experts not only provides opportunities for investors but also creates opportunities for those looking to buy for rental purposes,” said Mr. Tien. He explained that the return on investment would be higher for this group, stimulating the demand for real estate purchases in areas surrounding industrial parks.
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