Land prices in Hoc Mon and Cu Chi on Ho Chi Minh City's outskirts have soared, with both districts expected to lure an investment wave for infrastructure development.
Located in the north-northwest of the southern economic hub, the two districts are bustling with land trade activities.
Nguyen Tung, a secondary investor, said: “A land plot of 500 square meters in Hoc Mon used to be priced at over VND2 billion ($87,100). But it has jumped to VND3 billion, and would likely hit VND4 billion soon.” Tung added he now wanted to purchase a couple more pieces of land in the two districts.
Experts believe the land price fever to be triggered by the planned Ring Road 3 and HCMC-Moc Bai Expressway.
"Residential properties cost VND15-32 million ($652-1,400) per square meter, while lands along provincial roads and near town centers range from VND20-40 million. Plots on alleys are about VND10-15 million, while garden properties cost less than VND10 million," a real estate broker told The Investor.
Bao Khanh, a resident in Hoc Mon's Tan Thoi Nhi commune, said a brokerage firm is scooping up land there. "Even houses under construction are bought because the firm needs the land. The current price is about VND10 million per square meter.”
According to Nguyen Van Hau, CEO of Asian Holding Real Estate JSC, the land fever has engulfed both districts, with prices increasing by 20-50 percent given information on local zoning plans and transport infrastructure projects.
Under HCMC’s master planning until 2040, with a vision to 2060, the north-northwest is envisaged as one of the city’s main development areas, said Nguyen Thanh Nha, Director of the municipal Department of Architecture and Planning.
Under the city’s plan for 2021-2030, suburban districts like Hoc Mon, Binh Chanh, and Nha Be will become urban districts or cities by 2025; while Cu Chi and Can Gio will be upgraded from 2025 to 2030.
However, among the 30 criteria for these goals, Binh Chanh qualifies for 26, Can Gio for 19, while Hoc Mon, Nha Be, and Cu Chi meet 23 each.
HCMC is seeking $12.4 billion in private investment capital for 55 projects in Hoc Mon and Cu Chi districts, mainly involving transport infrastructure development.