Apartments priced at just over 1 billion VND.

According to statistics from Batdongsan.com.vn, by the end of Q3/2024, Binh Duong had 14 apartment projects on offer, such as: Phu Dong Skyone, Bcons City Di An, Bcons Avenue; The Felix Thuan An; Uni Complex Becamex... with average prices of 1.2-1.5 billion VND/1-bedroom apartment; and from 1.8 - 2.2 billion VND/2-bedroom apartment.

There are many advantages.

Mr. Truong Anh Tu, Deputy General Director of Danh Khoi Real Estate Services Joint Stock Company (DKRS, specializing in real estate brokerage), commented that the apartment market in Binh Duong is more vibrant than in neighboring localities because the demand for housing from young people, professionals, workers, and local residents is very high. In addition, the demand for buying for investment and rental purposes is also increasing due to the relatively affordable selling prices.

"Apartments in the two projects, The Felix and TT Avio, that we are selling are priced from only 31-32 million VND/m2, which works out to only 1.2 - 1.9 billion VND/apartment, which is very reasonable compared to Ho Chi Minh City or Dong Nai , but the quality of the apartments is in no way inferior."

"The reason is that the investment cost for building apartments in Binh Duong is so low that the selling price is only 50% of that in other localities, even within the same segment. Therefore, young people really like to choose to buy apartments priced at 1-2 billion VND in Binh Duong," Mr. Tu explained.

A housing project in Binh Duong attracted buyers right from its launch.

Furthermore, the increasingly developed transportation infrastructure is gradually narrowing the gap between Binh Duong and Ho Chi Minh City and other localities. A prime example is the Ho Chi Minh City - Thu Dau Mot - Binh Phuoc expressway, which connects to Ring Road 2 (Go Dua Bridge) and links to Pham Van Dong and Vo Nguyen Giap roads in Ho Chi Minh City. As a result, Binh Duong has attracted a large number of investors and homebuyers in recent times.

Mr. Dinh Minh Tuan, Director of the Southern region of Batdongsan.com.vn, cited statistics showing that consumer interest in Binh Duong real estate in the third quarter of 2024 increased by 32% compared to the same period last year. Meanwhile, other localities such as Long An, Ba Ria - Vung Tau, and Dong Nai only saw increases of 17% - 22%.

"The industrial economy has long been a pillar in the development of Binh Duong's real estate market. In particular, apartments in Binh Duong are a segment attracting great interest, concentrated in areas near Ho Chi Minh City such as Di An, Thu Dau Mot, and Bau Bang, with projected increases of 20%, 11%, and 10% respectively in Q3/2024 compared to Q2/2024," Mr. Tuan informed.

According to Vietnam's largest real estate website, Binh Duong province currently dominates the Southern region in terms of real estate supply. With its advantages as a residential area, interest in real estate in the province mainly comes from local and neighboring residents. As a province with significant advantages in infrastructure, urbanization rate, and positive planning prospects, Binh Duong is expected to receive many market support policies in the future, potentially attracting the supply shortages of other provinces.

Large land area, quick procedures.

According to observations, for several years now, many investors have shifted their projects from Ho Chi Minh City to Binh Duong. Currently, this trend continues and is becoming increasingly strong in both the commercial and social housing segments. While Kim Oanh Group Joint Stock Company is developing a series of social housing projects priced at under 1 billion VND, other investors are aggressively constructing commercial housing projects priced between 1 and 2 billion VND.

Specifically, after Phu Dong Group successfully implemented the Phu Dong Skyone project (Di An City, bordering Ho Chi Minh City) with selling prices of 1.3-1.5 billion VND/apartment, it attracted many other corporations to boldly develop projects in Binh Duong.

For example, Mr. Nguyen Quoc Cuong, before taking over the management of Quoc Cuong Gia Lai Company from his mother in July, led C-Holdings Joint Stock Company as Chairman of the Board of Directors, implementing up to 12 projects in Binh Duong, including 3 projects that have already taken shape: C-SlyView, The Felix, and Maison.

Mr. Cuong stated that the reason C-Holdings is "flocking" to Binh Duong is because many projects in Ho Chi Minh City have been stalled due to legal issues, while Binh Duong still has abundant land, is close to Ho Chi Minh City, but has relatively low project investment costs, and project implementation procedures are processed quite quickly. Therefore, many investors have actively implemented projects in Binh Duong, including C-Holdings.

"One- or two-bedroom apartments in Binh Duong are priced at only 1.2-2 billion VND/unit, which is very suitable for professionals and workers with stable incomes of 15-20 million VND/month. Therefore, those who do not yet own a home and are working in Binh Duong and Ho Chi Minh City are interested. This is because they can borrow to buy an apartment and repay it with their salary," Mr. Cuong said.

Meanwhile, Dong Nai also has advantages in terms of location and large land reserves, but its connecting infrastructure is not as complete as Binh Duong, and the legal procedures for projects are not as favorable, making it somewhat less attractive to investors.

Explaining why Binh Duong can pursue the 1.2 - 1.5 billion VND housing segment while this type of housing is almost "extinct" in Ho Chi Minh City and quite scarce in other localities, Mr. Vo Hong Thang, Investment Director of DKRA Group, pointed out several reasons. Firstly, land prices in Binh Duong are still quite low compared to Ho Chi Minh City, thereby contributing to creating conditions for investors to develop apartment products with similar size and quality at a more affordable price.

Furthermore, known as the "industrial capital" of the country, Binh Duong attracts a large number of migrant workers from other areas to work in the province's industrial parks and clusters. This group of young workers has a great need for housing but limited financial resources. Housing project developers in Binh Duong recognize this and strive to tailor their products to meet the needs of this group.

"Small apartments ranging from 40-50 m2, with 1 or 2 bedrooms, priced under 1.5 billion VND, will, in my opinion, remain a promising product line, attracting the most attention in the market due to their suitability for the housing needs of young families. However, the supply of this type of housing will be difficult to expand in many localities in the near future, focusing only on Thuan An, Di An, and Thu Dau Mot cities in Binh Duong province, or a few suburban districts bordering Ho Chi Minh City such as Ben Luc (Long An) and Nhon Trach (Dong Nai)..." - Mr. Thang said.

Real demand is the biggest advantage.

According to Mr. Dinh Minh Tuan, the real estate market in Binh Duong has many driving forces for development. Among them, the demand for housing is the biggest advantage. "Housing prices in Binh Duong are good compared to Ho Chi Minh City, and it's located at a gateway to trade and is a leading industrial center in Vietnam... therefore, the demand for housing from local people and those in neighboring areas is very high," Mr. Tuan explained.

Source: https://nld.com.vn/can-ho-gia-chi-hon-1-ti-dong-196240930212844805.htm