Real estate businesses flock to Binh Duong

In the context of the Southern real estate market still facing many difficulties, Binh Duong province has continuously welcomed large-scale projects implemented by domestic and foreign investors.

Most recently, Asia's leading real estate group, CapitaLand (Singapore), started the Sycamore project in Binh Duong New City with a total investment of up to 18,000 billion VND.

A series of large-scale projects

Sycamore is the group's first housing project in Binh Duong province and is also announced as CapitaLand's largest project in Vietnam, with a scale of nearly 19 hectares, supplying the market with 3,500 apartments, meeting the needs of about 13,000 residents.

A corner of the Sycamore project in Binh Duong new city. Photo: THAO NGUYEN

Talking about the reason for choosing Binh Duong for this project, Mr. Ronald Tay, General Director of CapitaLand Development (Vietnam), said that Binh Duong has a strategic location with a favorable business environment and high-quality infrastructure.

This is also one of the localities that strongly attracts foreign direct investment capital, the number of foreign experts and Ho Chi Minh City experts working here is very large, with a lot of potential.

Previously, another Malaysian corporation, Gamuda Land, also held a groundbreaking ceremony for the Artisan Park project, located right in the center of Binh Duong New City, adjacent to Binh Duong World Trade Center and the provincial administrative center. The project has a total investment of 117 million USD, a total area of ​​5.6 hectares, a structure of 3-4 floors with about 350 townhouses and shophouses.

Binh Duong New City was also chosen by Tokyu Group (Japan) as a prime location for investment with a total capital of more than 1.2 billion USD. Typical projects of this group include Sora Gardens SC Commercial Center with an area of ​​5,000 m2; Sora Gardens I & II apartments, Midori Park, The View, public bus system, Hikari food court...

"Billion dollar" handshakes

Not only welcoming foreign investment capital, domestic investors have also recently announced new projects in Binh Duong despite the fact that the real estate market in general is still difficult.

Specifically, most recently, Kim Oanh Group has officially received the decision approving the investment policy and approving the project investor from the Chairman of Binh Duong Provincial People's Committee to implement the One World urban area project. This project has a scale of nearly 50 hectares, located in Thuan Giao Ward, Thuan An City.

To implement this project worth over 1 billion USD, Kim Oanh Group has joined hands with 4 leading corporations from Japan, including: Sumitomo Forestry Group, Kumagai Gumi Group, NTT Urban Development Company, AEON Vietnam Company - a member of AEON Group.

Ms. Dang Thi Kim Oanh - Chairwoman of the Board of Directors, General Director of Kim Oanh Group - said that the project will include shophouses, townhouses, compound villas and apartments... along with a series of high-class amenities such as: conference - exhibition center, AEON shopping center, 5-star hotel, international inter-level school and officially introduce the product to the market in 2025.

Another group in Binh Duong, BCONS, is also joining hands with a major international partner, A Asset Limited (Thailand). Mr. Le Nhu Thach, Chairman of the Board of Directors of BCONS Group, said that the two sides have been implementing 11 housing projects in the Binh Duong area with a total of nearly 9,000 apartments supplied to the market.

According to Mr. Thach, one of the projects that the parties are cooperating on is the BCONS City model apartment complex located in the BCONS City project complex of nearly 12 hectares in the Thong Nhat street area, Dong Hoa ward, Di An city.

As for A Asset, this group highly appreciates the potential for real estate development in Binh Duong, in which the demand for housing in this "industrial capital" is very large. Therefore, when the economy recovers, the Binh Duong real estate market will quickly become vibrant again.

According to Dr. Pham Anh Khoi, Director of the Dat Xanh Services Institute for Economic - Financial - Real Estate Research, the first reason why Binh Duong attracts large domestic and foreign investors is its large land fund, which allows the construction of high-rise buildings and is not limited to population quotas.

In particular, on the two main roads bordering Ho Chi Minh City, Pham Van Dong and National Highway 13, there is still enough land for investors to implement projects. Meanwhile, land in Ho Chi Minh City and the suburbs is increasingly scarce.

The next reason is that the legal procedures for project implementation in Binh Duong can be said to be "easy". This locality always creates favorable conditions and quickly resolves procedures for investors to implement projects, reducing costs significantly compared to other localities.

In particular, construction costs in Binh Duong are considered quite affordable, only about 38-45 million VND/m2 for mid-high-end apartment projects, while the same segment in Ho Chi Minh City can be up to 2.5 times higher.

These factors make the input costs when developing projects in Binh Duong quite cheap, so the selling price of housing is also more affordable, thereby creating conditions for investors to increase profits.

In addition, finding affordable apartments in Ho Chi Minh City is increasingly difficult, and transportation between Binh Duong and Ho Chi Minh City is quite convenient, so workers working in neighboring areas can easily buy houses in Binh Duong to live in, invest in or rent out.

A recent study by the Dat Xanh Services Institute for Economic - Financial - Real Estate Research shows that Binh Duong is attracting many large domestic and foreign investors to participate in mergers and acquisitions (M&A) of large-scale projects in the industrial and residential real estate segments.

Meanwhile, the report on the real estate market in Ho Chi Minh City and surrounding areas in the first quarter of 2024 by DKRA Real Estate Services Group said that more than 80% of real estate transactions in the first quarter of 2024 were concentrated in Binh Duong and Long An, with products priced at an average of VND 16.4 - 22.2 million/m2. In particular, in the apartment segment, 122 primary projects were opened with about 12,967 units, mainly concentrated in the Ho Chi Minh City and Binh Duong markets.

Source: https://nld.com.vn/doanh-nghiep-bat-dong-san-do-ve-binh-duong-196240422211933604.htm