Abundant real estate opportunities surround HCMC

Nguyen Van Hau*
By Nguyen Van Hau*
Wed, May 4, 2022 | 7:08 am GMT+7

In provinces neighboring Ho Chi Minh City, legal proceedings for projects are settled in 1.5 to two years, whereas in the city, it takes four to five years.

Furthermore, pricing and abundant land funds there assist businesses in developing diversified products, saving extra expenses, and increasing profits.

Following information on state plans to turn some HCMC areas like Can Gio, Cu Chi and Binh Chanh into districts or upcoming transport infrastructure projects, housing and land prices there have soared by 20 to 50%. Cu Chi and Hoc Mon are showing signs of a land fever.

In the past few years, many real estate projects in HCMC have stalled partly due to legal entanglements. Only a few projects are eligible to open for sale each year.

According to the Department of Construction, only 31 housing projects, with 15,135 apartments and 1,617 townhouses, in HCMC are qualified to open for sale products that will take shape in future. In the past six years (July 2015 to June 2021), the metropolis allowed only 339 eligible projects to do so. The small figure falls far short of demand.

Even for projects like the one our company Asian Holding is working on in HCMC's Binh Chanh district near National Highway 51, handling legal procedures is complicated and extremely slow.

Our company concluded negotiations and began cooperating with partners four years ago since we received in-principal agreement from city authorities, but what has been completed so far is merely planning approval for the area.

Moreover, localities that are satellites to HCMC are rolling out the red carpet to encourage investments from big companies, a more open market.

Aside from legal complexity, HCMC basically has had no land fund to develop real estate projects since 2019. Especially in the apartment segment, with land funds largely in the hands of big real estate companies, legal proceedings are too slow.

Thus, major real estate firms like Vingroup, Novaland, Dat Xanh, Hung Thinh Corp, Phu Dong, and others have shifted to satellite provinces like Long An, Binh Duong, Dong Nai, Ba Ria-Vung Tau, and now Binh Phuoc, in search of investment opportunities and land funds. Apart from land funds, pricing is also a strength of satellite provinces.

Among factors that pushed real estate companies to leave the HCMC market, the most important is the ideal profit margin of real estate in nearby areas, which is higher than that in the city.

The capital cost of project investments in areas adjacent to HCMC remains low. The size and abundance of land in these locations are ideal for diversifying products and meeting diverse tastes among investors and customers.

Aside from the segment of land with infrastructure, which is robustly developing in areas neighboring HCMC, provinces near rivers, lakes, or hills would draw many firms to invest soon.

The Astral City apartment and trade complex project, invested by Phat Dat Corporation, in Binh Duong province, central Vietnam.

The Astral City apartment and trade complex project, invested by Phat Dat Corporation, in Binh Duong province, central Vietnam.

As people's attitudes on owning a "second house" are changing due to the Covid-19 pandemic, "green", utility-driven and location-related elements would certainly boost a project.

While considering how to develop large-scale, high-quality urban projects, provincial authorities must mull over how to attract residents and experts to these areas. The fact is there are residential developments and urban districts already in place, but no one lives there.

For areas neighboring HCMC, the demand to buy real estate as an investment is higher than for residential purposes. The bank lending rate is currently low, while many people are pouring money into real estate and securities. Thus, satellite areas are more suitable to invest. As a real estate developer, I would like to advise investors to develop quality mega urban area projects.

State investment capital is being channeled into transport infrastructure in satellite provinces. Expressways HCMC - Thu Dau Mot - Chon Thanh, Bien Hoa - Vung Tau, and Ben Luc - Long Thanh, road upgrading and expansion projects, as well as those that bolster regional linkages would make travel more convenient in the next few years. This is a powerful incentive for real estate developers to become the "early birds" in satellite provinces.

*Nguyen Van Hau is General Director of Asian Holding Real Estate JSC

Comments (0)
  • Read More
Vietnam's benchmark VN-Index likely to reach 1,800 points next year: broker

Vietnam's benchmark VN-Index likely to reach 1,800 points next year: broker

Despite potential short-term volatility from increased profit-taking pressure following a high-margin phase in late July, Vietnam’s benchmark VN-Index is expected to reach the 1,750-1,800 point range in 2026, according to leading broker Saigon Securities (SSI).

Finance - Sat, August 9, 2025 | 6:22 pm GMT+7

Mobile World to list mobile phone, electronic home appliance chains by 2030

Mobile World to list mobile phone, electronic home appliance chains by 2030

Mobile World Investment Corporation (MWG), a leading retailer in Vietnam, plans to conduct an IPO of and list its core retail chains The Gioi Di Dong (mobile phones) and Dien May Xanh (electric and electronic home appliances) by 2030.

Companies - Sat, August 9, 2025 | 6:04 pm GMT+7

Vietnam officially grants visa-free entry to high-profile foreigners

Vietnam officially grants visa-free entry to high-profile foreigners

The Vietnamese Government has introduced a limited-term visa waiver scheme for foreign nationals who are "prioritized for the sake of the country’s socio-economic development".

Politics - Sat, August 9, 2025 | 11:32 am GMT+7

VinEnergo launches rooftop solar, battery storage projects in central Vietnam

VinEnergo launches rooftop solar, battery storage projects in central Vietnam

VinEnergo Energy Joint Stock Company has signed MoUs to install rooftop solar power systems integrated with battery energy storage systems (BESS) with the VinFast automobile plant and two battery factories in the central province of Ha Tinh.

Companies - Sat, August 9, 2025 | 10:21 am GMT+7

Indonesia doubles lithium imports to boost EV battery production

Indonesia doubles lithium imports to boost EV battery production

Indonesia is accelerating plans to increase lithium imports, particularly from Australia, in a bid to fill gaps in the electric vehicle (EV) battery supply chain and realize its ambition of becoming a global EV manufacturing hub.

Southeast Asia - Sat, August 9, 2025 | 10:18 am GMT+7

Optimism rises for Thailand’s economy after US tariff cut

Optimism rises for Thailand’s economy after US tariff cut

Thailand’s private sector has lifted its 2025 GDP growth forecast to 1.8-2.2%, up from the previous 1.5-2%, following the U.S. decision to reduce import tariffs on Thai goods from 36% to 19%.

Southeast Asia - Sat, August 9, 2025 | 10:16 am GMT+7

Foreign investors make up 4.27% of Vietnamese G-bonds trading value in July

Foreign investors make up 4.27% of Vietnamese G-bonds trading value in July

Foreign investors accounted for 4.27% of the total trading value of Vietnamese government bonds (G-bonds) in July, with net buying at VND298 billion (nearly 11.4 million).

Finance - Sat, August 9, 2025 | 10:08 am GMT+7

Vietnam developer Taseco Land plans private share placement following HCMC bourse debut

Vietnam developer Taseco Land plans private share placement following HCMC bourse debut

Shortly after its listing on the Ho Chi Minh Stock Exchange (HoSE) as TAL, Taseco Land, a subsidiary of Vietnam’s conglomerate Taseco Group, is seeking shareholder approval for a private share placement targeted at professional investors.

Companies - Sat, August 9, 2025 | 8:00 am GMT+7

Vietnam aims to finalize negotiations for Ninh Thuan 1 nuclear power plant by August

Vietnam aims to finalize negotiations for Ninh Thuan 1 nuclear power plant by August

The Vietnamese government targets completing negotiations for Ninh Thuan 1 nuclear power plant in former Ninh Thuan province (now Khanh Hoa) by August 2025, and for Ninh Thuan 2 by May 2026 at the latest.

Energy - Fri, August 8, 2025 | 4:18 pm GMT+7

Software giant SAP invests $175 ml in R&D center in Vietnam

Software giant SAP invests $175 ml in R&D center in Vietnam

German software heavyweight SAP has officially launched a research & development center in Vietnam, with plans to invest more than €150 million ($175 million) over the next five years.

Industries - Fri, August 8, 2025 | 3:43 pm GMT+7

Carlsberg’s Phu Bai Brewery expansion in central Vietnam set to start brewing late this month

Carlsberg’s Phu Bai Brewery expansion in central Vietnam set to start brewing late this month

The expansion of Carlsberg’s brewery in Hue city, central Vietnam, with an investment of nearly $90 million, has entered trial runs and is scheduled to be inaugurated and begin full-scale production in late August.

Industries - Fri, August 8, 2025 | 2:43 pm GMT+7

Indonesia promotes nickel-based EV battery production

Indonesia promotes nickel-based EV battery production

Indonesia is advocating regulations to encourage electric vehicle (EV) manufacturers to switch from the commonly used lithium-based batteries to nickel-based ones.

Southeast Asia - Fri, August 8, 2025 | 1:54 pm GMT+7

BRICS countries account for over 35% of Malaysia’s total foreign trade turnover

BRICS countries account for over 35% of Malaysia’s total foreign trade turnover

Malaysia’s trade with BRICS nations climbed to RM818 billion ($193.47 billion) in 2024, making up 35.2% of the country’s total global trade, according to the Ministry of Investment, Trade and Industry (MITI).

Southeast Asia - Fri, August 8, 2025 | 1:52 pm GMT+7

Vietnam consumer finance major F88’s stock hits ceiling price on UPCoM debut

Vietnam consumer finance major F88’s stock hits ceiling price on UPCoM debut

The stock of F88 Investment JSC (F88), a leading consumer finance company in Vietnam, hit its ceiling price of VND888,800 ($34) on Friday, the first day of trading on the Unlisted Public Companies Market (UPCoM).

Companies - Fri, August 8, 2025 | 1:32 pm GMT+7

US tariff unlikely to dent Vietnam’s long-term FDI appeal: broker

US tariff unlikely to dent Vietnam’s long-term FDI appeal: broker

The U.S. tariff gap between Vietnamese goods and those from four other Southeast Asian countries would not erode Vietnam’s competitive edge in manufacturing and investment, said Hanoi-based Vietcombank Securities (VCBS).

Economy - Fri, August 8, 2025 | 12:24 pm GMT+7

Land clearance for Vietnam's North-South high-speed railway project to start on December 19

Land clearance for Vietnam's North-South high-speed railway project to start on December 19

Prime Minister Pham Minh Chinh has requested localities to start land clearance en masse for the gigantic North-South high-speed railway project on December 19.

Economy - Fri, August 8, 2025 | 11:52 am GMT+7