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| Latest real estate: One of the key projects in Ben Luc and Duc Hoa districts, Long An province. (Source: VNA) |
Great room for development in the Southwest market
2023 is considered a new driving force for socio-economic development of the Southwest economic region when key transport projects in the Mekong Delta reach the finish line.
This is also a great potential, creating opportunities for investors from all over to develop real estate projects in the Southwest, meeting the housing needs of local residents in the region, which are currently very abundant.
According to experts, the real estate market in the Southwest has great potential due to its favorable natural and climatic conditions. This place not only promotes agricultural growth and seafood export but also strongly attracts FDI capital in the fields of industry, clean energy, logistics, etc.
Batdongsan.com.vn Strategy Director Le Bao Long highly appreciates the investment potential of real estate in the Southwest thanks to infrastructure planning and growth potential.
It is expected that the Southwest region will have many new highways and bridges with a total capital of more than 20,000 billion VND.
By 2030, the Mekong Delta will have 760km of highways, and by 2050, it is planned to have 1,180km. In the next four years, the whole region will have Rach Mieu 2 and My Thuan 2 bridges, Dinh Khao bridge and Dai Ngai bridge connecting the two banks of the Hau River.
The Mekong Delta has also invested in and completed expressways including Ben Luc-Trung Luong, Trung Luong-My Thuan, Cao Lanh-Lo Te and Lo Te-Rach Soi. All of these expressways not only help develop the transportation sector but also contribute to stimulating the real estate market in the Western localities.
According to Mr. Le Quyet Tien, Director of the Department of Construction Investment Management, Ministry of Transport, projects to be completed in 2023 in the Mekong Delta include the My Thuan - Can Tho Expressway, My Thuan 2 Bridge, National Highway 1 bypass through Ca Mau City, the project to upgrade the channel for large ships to enter the Hau River (phase 2); the project to upgrade the Cho Gao Canal (phase 2).
As for the North-South Expressway project phase 2 (2021-2025), the Can Tho-Hau Giang-Ca Mau section will be completed in 2025.
The 23km My Thuan-Can Tho Expressway is considered an important link of the more than 120km expressway from Ho Chi Minh City to Can Tho. When completed, the route will greatly reduce the load on National Highway 1, shortening the travel time from Ho Chi Minh City to the Mekong Delta provinces to just over two hours, instead of nearly four hours as at present.
In addition, the Cho Gao Canal project (Tien Giang province) is a vital waterway connecting the Mekong Delta provinces with Ho Chi Minh City. When completed, it will help improve waterway transport capacity as large watercraft with a tonnage of 2,000-3,000 tons can travel smoothly through the canal.
At the same time, the channel project for large-tonnage ships entering the Hau River (phase 2) will also be completed in 2023, meeting the needs of ships with a capacity of up to 20,000 tons fully loaded to regularly circulate on the route, meeting the volume of goods passing through from 21-22 million tons/year and container cargo of 450,000-500,000 TEU/year. From there, it will open up a direction for further maritime economic development for the Southwest economic region.
Expert Dang Hung Vo shared that the Southwest is a region with great potential for agriculture, and needs agricultural urban areas and real estate associated with the agricultural ecosystem. At the same time, creating an agricultural urban structure associated with tourism according to the green and smart philosophy. Agricultural characteristics are the attraction for residents from all over, including foreigners, to live and work, thereby having advantages in the quality of residents, labor, etc.
Opportunities for investors
Since the beginning of 2023, the Prime Minister has given strong instructions to promote and remove difficulties for the real estate market. Some projects have basically resolved their difficulties, and many projects have been restarted.
Real estate credit in the first four months of 2023 increased by 9.78%, three times higher than the economy's overall credit. Market developments also show that real estate is gradually recovering, albeit slowly.
In fact, the Southwest region is also receiving attention from the Government in development planning. At the end of February 2023, the Prime Minister approved the planning of the Southwest region for the period 2021-2030, with a vision to 2050.
The provinces and cities in the region will become the driving force to strengthen intra-regional trade connections and between the region and Ho Chi Minh City, the Southeast and the whole country. This is an opportunity for the region to improve the quality of life of its people, as well as an opportunity for investors to develop real estate projects in the Southwest to meet the housing needs of the people.
According to experts, the Southwest market is continuously attracting capital from many large domestic and foreign investors, with capital expected to increase by about 23.3% in the 2021-2025 period.
It is predicted that in the coming period from 2023-2030, this market will continue to attract investors due to its great potential for real estate development thanks to reasonable prices and abundant land funds.
Chairman of the Can Tho City Real Estate Association, Mr. Duong Quoc Thuy, said that the opportunities for real estate investors in the Southwest are extremely open. Currently, the whole region does not have many large enterprises to exploit, so there is still a lot of room for investors to develop projects.
How to retain foreigners buying houses in Vietnam?
According to statistics from the Ministry of Construction, there are about 4 million people who want to buy houses in Vietnam in the future, including foreigners and overseas Vietnamese.
The trend of more and more foreigners wanting to buy houses in Vietnam is a good sign, reflecting the potential of a positively developing economy.
Experts commented that in the coming time, the Housing Law needs to be amended to be transparent, strict and consistent with regulations and practices.
In particular, regulations related to selling houses to foreigners need to be more open and specific instead of increasing barriers.
At the same time, this amendment must be consistent with the provisions of the Land Law and the Law on Real Estate Business.
Mr. Hoang Hai - Director of the Department of Housing and Real Estate Market Management (Ministry of Construction) - said that since the 2014 Housing Law took effect, the number of foreign individuals and organizations owning houses in Vietnam has increased significantly.
This shows that the Housing Law stipulates that foreign organizations and individuals are allowed to buy and own houses with expanded conditions in terms of scope, subjects, types of houses, number of houses that can be purchased... creating favorable conditions to attract and promote investment, tourism and service development, real estate market development, in accordance with international practices, attracting FDI capital flows.
Statistics from the Ministry of Construction also show that since the 2014 Housing Law took effect, about 3,035 foreigners have bought houses in Vietnam, mainly apartments in commercial housing projects.
Foreign organizations and individuals have purchased and owned houses in Vietnam, mainly concentrated in large provinces and cities such as Hanoi, Ho Chi Minh City, Bac Ninh, Binh Duong, Ba Ria-Vung Tau...
Most of these subjects come from Korea, China, Singapore, USA, Australia, Japan, Malaysia.
However, the Vietnam Real Estate Brokers Association commented that the total number of foreigners who have bought houses in Vietnam is still very small compared to demand.
Specifically, according to VARS calculations, the number of houses purchased by foreigners in Vietnam since the 2014 Housing Law took effect accounts for only about 0.53% of the total number of houses nationwide in the 2018-2022 period.
Meanwhile, the demand for buying houses of foreigners living and working in Vietnam, including the demand for owning houses for residence and business purposes, is very large.
According to data from the General Statistics Office, in 2005, the number of foreign workers in Vietnam was 12,000 people, but by 2019 it was 117,800 people. At the same time, the number of foreign workers licensed to work in Vietnam as of March 2022 was 100,000 people, nearly 10 times higher than in 2005.
VARS Chairman Nguyen Van Dinh commented that long-term business as well as investment needs due to the attraction of real estate investment potential in Vietnam will certainly create a need to own houses and apartments.
In addition, the choice of rich foreigners when housing prices in some countries are too high or the tightening of immigration regulations in some countries... will also increase the demand for home ownership in Vietnam.
VARS cited a report by real estate firm Juwai IQI in the first half of 2023 showing that Southeast Asia, including Vietnam, is emerging as a favorite destination for rich people in Asian countries.
The Ministry of Construction proposed that the Government allow the draft Law on Housing (amended) to remain unchanged, allowing foreign individuals entering Vietnam to buy and own houses in Vietnam (including individual houses and apartments).
At the same time, the Ministry of Construction accepted the opinion of the National Assembly Standing Committee to remove the regulation that foreign organizations and individuals are allowed to own houses associated with the right to use leased land.
Legalizing regulations is necessary, especially in the direction of transparency, openness and still ensuring national security, economic factors...
However, it is necessary to synchronize related laws so that legal factors do not become barriers.
Mong Cai real estate reveals great potential
Holding an important strategic role on the national socio-economic map, along with infrastructure and transportation boosts, Mong Cai (Quang Ninh) is possessing many opportunities to break through and become one of the busiest cities in the country.
Mr. Nguyen Van Dinh, Vice President of Vietnam Real Estate Association, President of Vietnam Real Estate Brokers Association, assessed that much information is positively impacting the real estate market nationwide.
Lending interest rates have cooled down and decreased significantly in recent times, helping to reduce the burden on borrowers and at the same time directing cash flow to the real estate sector. In this context, products that meet real value, have good legal status, and ensure progress from potential investors are always "hunted" by customers, especially in areas and localities with strong infrastructure development and high urbanization rates.
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| Perspective of Vinhomes Golden Avenue project in Mong Cai, Quang Ninh. (Source: Vinhomes) |
For example, in Mong Cai, a border city with outstanding potential from location, traffic infrastructure, as well as strategic investment, since mid-2021, it has recorded the arrival of "giants" Vingroup, Sun Group, Ecopark, Vinaconex... The appearance of large enterprises with investment projects worth thousands of billions has affirmed the outstanding potential of this land.
These driving forces have created a vibrant market, turning Mong Cai into a place with outstanding growth potential accompanied by strong liquidity. In fact, according to Batdongsan.com, in mid-2022, Mong Cai land recorded an increase of 10-20% compared to the end of 2021 with a new price level being established.
Standing out among the real estate giants, most recently, the Vinhomes Golden Avenue border gate urban area located in Bac Luan 2, Mong Cai City, invested and developed by Vinhomes, has officially launched. The project is assessed by experts to have created a boost for the real estate market in particular and the growth momentum of the country's largest border city in general.
The growth potential of Vinhomes Golden Avenue must first be mentioned in the project's internal vitality with a synchronously operated 5-star landscape and living facilities system, thereby attracting the community of residents.
The project is the first international border gate urban area in Mong Cai, planned to combine residential and business, meeting the needs of high-class living, resort, study, high-quality healthcare to shopping, vibrant business. This urban area model optimizes space and time, when nearly 30% of 116 hectares is dedicated to construction, the rest is parks, lakes, trees, swimming pools, health gardens, jogging tracks, gyms, entertainment areas for all ages...
The classy landscape system at the project promises to create a unique resort lifestyle for residents, an ideal place for everyone to exercise, enjoy fresh air and peaceful moments.
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