Investors dominate Dong Nai residential market

DONG NAI (Homeid) ― The residential market in southern Dong Nai Province is being dominated by property investors rather than actual home-owners, according to a new Savills Viet Nam report.

Workers produce footwear in Dong Nai's Bien Hoa 2 Industrial Zone. The large supply of industrial parks has attracted company employees and expatriates, increasing residential demand in the southern province. — Photo baodongnai.com.vn

 

The province has 31 operational industrial parks covering a total area of 9,300ha, with 6,200ha leasable. The large supply of industrial parks has attracted company employees and expatriates, increasing residential demand.

But the report also said "weak infrastructure development and a lack of social facilities are obstacles to attracting immigrants from adjacent areas."

As of the third quarter of this year, there are 42 residential projects supplying around 27,000 units per dwelling in Dong Nai, concentrated in districts adjacent to HCM City and Binh Duong Province. Land plots accounted for 94 per cent of the total residential stock.

"The land plot segment is most attractive to investors and speculators," Savills said. "Buyers purchasing villas or townhouses buy property as second homes, or for future residences."

The average price range of apartments part of current projects is US$690-900 per sq.m, or $58,000-90,000 per unit.

The accumulated sales of seven active villa and townhouse projects in Dong Nai stands roughly at 66 per cent of 1,400 dwellings launched since 2008. The average price for a property land is now $612 per sq.m, or $50,000-220,000 per dwelling.

Around 5,100 land plots have been sold since 2009 with popular prices of US$120-220 per sq.m, or $10,000-$25,000 per plot.

"In the long term, the area should attract a real living population with the completion of key infrastructure systems and further development of social facilities," Savills said.

According to the company, 50 projects would add to the supply with a total of 5,000ha, with less than 15 per cent under construction.

There are around 3,500 apartments from seven projects planned for development in Bien Hoa, Long Thanh and Nhon Trach districts. ― VNS

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