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Capital flow is shifting from Long Thanh vacant land to Bien Hoa center
Friday,  Dec 22, 2017,10:04 (GMT+7)

Capital flow is shifting from Long Thanh vacant land to Bien Hoa center

The Dong Nai real estate market is seeing remarkable changes as capital flows are sharply shifting from the area around Long Thanh airport to Bien Hoa downtown.

From Long Thanh to Bien Hoa

In the first months of 2017, the hub of the Dong Nai real estate market just rotated around the story of the Long Thanh International Airport planning to be approved.

As recorded in the first nine months of this year, more than VND8,000 billion from Saigon investors poured in more than 200 projects large and small with a scale of nearly 2,000 hectares in Long Thanh.

The most affected areas are Binh Son and Loc An communes (in Long Thanh District) whose land areas are only partially cleared, being considered “lucrative” to investors.

Since the beginning of June, however, the trading of Long Thanh land market has slowed down as a result of a rule on limited land allocation, land separation and land transfer within 21,000 ha around the airport in an effort to prevent the occurrence of “ghost" urban areas as investors from Ho Chi Minh City might well rush here for speculation activities in anticipation of a mark-up.

The acts of intervention by the authorities have created remarkable changes to the real estate market in Dong Nai: The fever of vacant land in the airport vicinity has cooled down, the speculation is under control and the cash flow is flowing to the central Bien Hoa area, pouring into the prosperous and inherent segments as the advantages of Bien Hoa: serviced apartments for expat specialists in industrial parks.

In the late months of 2017, Bien Hoa and its vicinity will receive 4 projects with more than 3,000 luxury apartments for expat experts to rent. It is estimated that the number of apartments launched by real estate companies in the last two months is four times higher than the total number of apartments offered in Bien Hoa in the past six years combined.

Awakening the potential of "the sleeping gold mine"

As the largest industrial city in the Southeastern region, according to the data by the Dong Nai Industrial Zones Authority, Bien Hoa now owns 5 large industrial parks with more than 400,000 employees, 10,000 of which are expat specialists (accounting for10% of the total number of expat specialists in Vietnam).

From the extended radius of 15km to the adjacent areas as Trang Bom, Di An and Thuan An, the companies here employ an additional number of roughly 15,000 foreign staff (taking up 15% of the total number of expat specialists in Vietnam).

Yet, less than 1% of those foreigners have owned their housing, and the rest are looking for high-end apartments to rent and are willing to pay the price of VND 8- 12 million per month for a one-bedroom unit in the Bien Hoa downtown area.

When offered for sale in the market these apartments are in the price range of more than VND1 billion per unit. With the above rental price, the owner can annually earn the returns of over VND100 million per year, equivalent to 9 - 10% of the initial investment capital.

The big demand is real, yet the supply is not adequate enough to meet as the segment of mid-range apartments in Bien Hoa area offers only few projects supplying about 1.5% of accommodation for rent to foreigners. This led many expats to accept the distance of scores of kilometers a day from  Bien Hoa to HCMC for a more comfortable living.

A pack of big real estate players to enter the game

The demand is great, but the supply is scarce; therefore, this will be the ideal market for real estate businesses to aim at. In the upcoming time, Berjaya D2D Vietnam - the Malaysian multinational corporation - will launch more than 700 luxury apartments at the Topaz Twins project with an average price of VND1.3 billion per unit. This project is located in the center of Bien Hoa City, right on the hustle and bustle Vo Thi Sau Street.

Topaz Twins owns much green space compared to other projects in Bien Hoa alongside smart design of friendly environment and health benefits. Especially, this is a project of convergence of high-end facilities to meet international standards of living of foreign expats such as sky garden complexes and water features at the heart of the project, infinity swimming pool, aqua gym, shopping center, sauna, happy garden dedicated to residence children, and other facilities.

After Topaz Twins, by the end of this December, the Japanese joint venture with a Vietnam-based real estate company will also pour VND872 billion into the serviced apartment and shopping mall project with more than 400 products in Bien Hoa Downtown with an average price ranging from VND 1.5 billion per unit. In addition to those big players, Samland Group will launch nearly 1,200 high-end Samsara Riverside apartments in the same location.

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