Considered a "promised land", why is Long An's real estate market still gloomy?

Many large real estate projects

In recent years, the real estate market in the Southern region has encountered many difficulties in supply in the villa, townhouse, and land segments.

In particular, while Ho Chi Minh City is lacking in the above segment, in Long An , a series of real estate projects from large to small, old to new are appearing to introduce to investors.

Some "eagles" in the real estate sector are focusing on Long An province for development such as: Vin Group; Ecopark Group; Rox Group; Prodezi Long An...

In addition to the above giants, many mid-range real estate businesses are also offering projects to investors.

Được coi là — *Real estate projects in Long An are being offered for sale by many brokerage floors.*

We can mention the real estate product Phuc Dong Ecohome Residential Area (Duc Hoa district) invested by Viet Phuc Construction and Real Estate Trading Company with 45 plots, with an area of 100 to 200 m2, currently priced at about 8 - 15 million/m2.

In addition, one of the projects priced at around 1 billion VND/plot is Duc Hoa New City project (Huu Thanh commune), invested by An Nong Land Company Limited, built on an area of 3.01 hectares, with 177 plots, each plot area from 85m2 or more.

Another project being opened for sale is called Quoc Linh Residential Area - The Diamond City in Huu Thanh commune, with an area of 10 hectares, the selling price is about 2 billion VND/plot, with an area of 80 square meters.

Or the Luong Hoa residential area (LA Home) in Luong Hoa commune, Ben Luc district, the project is invested by Prodezi Long An Joint Stock Company, Huong Viet Investment Joint Stock Company (HVH) is the project developer... in addition, some projects are also being completed by the investor before being offered to buyers and investors.

The market is still gloomy

Long An is one of the areas adjacent to Ho Chi Minh City with Ho Chi Minh City - Trung Luong Expressway and National Highway 1A passing through to connect to the southwestern provinces.

Due to the concentration of many industrial parks and large land funds, this province has developed land potential, and large and small enterprises all have strategies for housing projects.

However, in 2024, although many real estate segments are offered to the market, investor sentiment is still very cautious.

Sharing with Nguoi Dua Tin , Ms. Gia Linh (residing in Go Vap district), an investor, said: "Currently, Long An has a very large land fund and many concentrated projects. However, in this market, there are too many projects whose population and long-term potential, in my opinion, are still not commensurate with the price and future profits for investors.

Some projects, although having full infrastructure, but in terms of profit, the price does not increase and may very well bury capital.

Talking to reporters, Mr. Le Dinh Lang, Director of Song Long Real Estate Investment, Construction and Development Company Limited, commented: "The land real estate segment is currently trading very slowly compared to previous years.

In addition to the reason that some projects have not completed legal procedures, investors feel that profits are not attractive, plus the whole market is very gloomy, land transactions in the provinces around Ho Chi Minh City recorded slow liquidity, so buyers have a heavy wait-and-see mentality.

"In the years 2020 - 2022, land projects and subdivided land in Long An area or some provinces and cities such as Binh Duong and Dong Nai are very active because investors' cash flow is always used, good liquidity creates profits, so buyers are willing to spend money.

But since the pandemic and the impact of the general economy , cash flow has been stuck, banks have tightened credit, causing capital to not be available, so very few people are interested in land and project townhouses. This is also a common mentality because no one wants to buy a product without being sure of the profit," said Mr. Lang.

According to Mr. Lang, although the market welcomes many products in the land and project townhouse segments, prices are still very high, real estate profits have to wait for a long time, so the market will still be gloomy.

According to Nguoi Dua Tin , the prices of projects in Long An range from 2 billion to 5 billion VND/product, with some projects selling for up to 7 billion VND depending on the area and segment.

Meanwhile, the recovery of land and project townhouses is slower than other types of real estate.

According to the latest report from the market research department DKRA Group, in the second quarter of 2024, the land segment in the South had up to 78 projects opened for sale, with more than 6,500 plots, an increase of 5% over the same period last year.

Binh Duong province accounts for 34.2% of the number of products for sale; Long An accounts for 25.3%; Dong Nai accounts for 22.1%; Ba Ria - Vung Tau accounts for 8.3%; Ho Chi Minh City accounts for 7.9%; Tay Ninh accounts for 2.2%...

Source: https://www.nguoiduatin.vn/duoc-coi-la-mien-dat-hua-nhung-vi-sao-thi-truong-bat-dong-san-long-an-van-am-dam-204240904142601797.htm