Real estate market news

20 billion USD is the capital that Quantum Group (USA) proposes to invest in Vietnam, of which Ba Ria - Vung Tau is the key market. Specifically, this investor wants to invest in Long Son power plant, infrastructure projects such as Long Son port (including a gas port to supply industrial parks and households later). Quantum also expresses its desire to invest in the logistics segment in Vung Tau and build a railway line from Vung Tau connecting Dong Nai, Binh Duong and Ho Chi Minh City.


Other investors also pay great attention to the economic potential of the Eastern coastal city. Currently, industrial parks in Ba Ria - Vung Tau are bright spots thanks to the benefits of infrastructure with seaport and international airport. JLL Vietnam said that it recorded many completed transactions in Ba Ria - Vung Tau in spite of the outbreak of the epidemic. Land lease agreements mainly came from heavy industry manufacturers that require large land area. Recently, Amata Group (Thailand) also proposed to research an investment project in an industrial - urban - service zone in Cu Be commune, Chau Duc district with total area of about 3,800 hectares.



Phu My and Chau Duc areas are currently the focus of industrial and storage service real estate by taking advantage of the proximity to Cai Mep port to become the key industrial zone of Ba Ria - Vung Tau, accounting for about 70% industrial park area of the whole province. According to statistics from the Management Board of Industrial Parks of Ba Ria - Vung Tau province, Phu My town is the most developed area for industrial parks, with total area of more than 4,985 hectares, accounting for more than 48% of total area of the industrial park area in the province, followed by Chau Duc district with 3,082 hectares of industrial park and accounting for nearly 30%.

According to the Management Board of Industrial Parks of Ba Ria - Vung Tau province, this year, the locality aims to attract 30 investment projects, but only in the first 8 months of the year, 39 investment projects have had new licenses granted. Total attracted capital was more than USD9 45 million, reaching more than 150% of the annual plan and increasing 52% over the same period in 2020.

JLL Vietnam predicted that industrial land rental prices in the South would continue to grow. As for ready-built factories, about new 940,000 m2 area would be launched into the market by the end of 2021 if the epidemic situation was controlled and the market recovered. This was also a potential supporting factor of Ba Ria - Vung Tau in the orientation of developing industrial projects.



Residential real estate and resort tourism also received a lot of attention from investors. Hung Vuong Holdings acquired 2 projects with a scale of more than 30 hectares in Ba Ria - Vung Tau to be ready to put into business after the epidemic is under control. Novaland Group is studying and implementing Novaworld Ho Tram project and the safari park with a scale of hundreds of hectares. Brands pouring capital into Ba Ria - Vung Tau also include Hung Thinh, An Gia, DIC Corp...

The factor that attracts domestic and foreign investors to look for new business opportunities in the coastal city comes from the strong growth potential thanks to benefits from key infrastructure projects. For example, Long Thanh International Airport, when put into operation from 2025, can transport millions of international tourists to Vung Tau. Recently, Con Dao Airport has been also officially approved to upgrade to 4C with a capacity of 2 million passengers/year, 4 times higher than the current one.

Currently, Bien Hoa - Vung Tau expressway is urgently implementing procedures to start construction soon. While Cai Mep - Thi Vai - Phuoc An bridge inter-port route and the section connecting to the Ben Luc - Long Thanh expressway are speeding up progress, helping shorten the time to transport goods from Cai Mep - Thi Vai deep-water port cluster to Ho Chi Minh City and the Southeast region.


Recently, Ba Ria - Vung Tau province started to build  a strategy to develop tourism in the province by 2030, with a vision to 2050. Photo: Quy Hoa


In addition to the advantage of deep-water port convenient for industry, energy, storage..., Ba Ria - Vung Tau can also benefit from the trend of short-term tourism (staycation) and the second home market can grow healthy in the near future. According to the report on level of interest of investors in the second quarter of 2021 of, Vung Tau city was ranked in top 3 in search volume among the Southern provinces. Moreover, the level of interest in the second quarter continued to increase strongly compared to the first quarter, partly reflecting the strong demand for real estate of the people. Land prices in this market always keep a stable growth rate, from 20-30%/year. And the real estate market shows signs of increasing prices faster when infrastructure investment information is promoted.

Recently, Ba Ria - Vung Tau province started to build a strategy to develop tourism in the province by 2030, with a vision to 2050, with the goal of developing Ba Ria - Vung Tau tourism into one of four economic pillars: building the image of the destination, positioning the province's tourism brand towards improving the quality on the domestic and international tourist map with many unique types of tourism - entertainment. The contribution proportion of tourism activities will be 12% of the province's forecasted GRDP by 2030.

According to Mr. Pham Linh, Vice Chairman of Ho Chi Minh City Real Estate Club, Deputy General Director of Viet A Bank, in the coming time, the Eastern market, including Ba Ria - Vung Tau, will receive post-epidemic development opportunities. This trend is thanks to the Government's increase in public investment, especially in transport infrastructure projects. Lending interest rates will be reduced under the direction of the State Bank of Vietnam. In particular, the source of remittances is still increasing strongly, which is a launching pad to support the market.

It can be seen that Ba Ria - Vung Tau converges 5 important factors to promote the real estate market, including: advantages from the international airport, the largest deep-water seaport in Southeast Asia, many major industrial parks, strongly developed tourism, the investor attracting market because of the cheap land price and plenty of fiscal spaces of increase in prices.



According to