The real estate market in the southern province of Dong Nai has more development potential than many neighbouring cities and provinces, according to a study conducted by Vietsee Media Corporation (Vietsees).
The real estate market in the southern province of Dong Nai has more development potential than many neighbouring cities and provinces, according to a study conducted by Vietsee Media Corporation (Vietsees).
The province has proved to be very attractive to investors because it is seen as HCM City’s "backyard", an aspect that will come into play strongly when the city’s plans to distribute its population are implemented.
The province’s rapid economic growth, its success in attracting domestic and foreign investment, developed infrastructure and many major construction projects are other reasons that can lure more investors into Dong Nai, the study found.
The study credits the provincial leadership’s socio-economic development plans, its open geographical position, the number of industrial parks, stable market prices and diversified topographical conditions that help to build several kinds of houses.
Advantages
Dong Nai borders six cities and provinces in the southeastern region’s key economic zone including HCM City, Binh Duong, Lam Dong, Binh Thuan and Ba Ria-Vung Tau. This makes the province an important transport and communication point that links with National Highway No.1, Highway No.51 and Highway 20.
In 2008, the province’s GDP grew by 15.5 per cent as compared with 2007, doubling the country’s average rate. With 34 industrial parks and clusters, it leads the country in attracting foreign direct investment with US$15.4 billion. In addition, 257 projects involved in the construction of residential and urban areas that have already planned are also expected to create opportunities for investors.
A series of major transportation projects that have just started implementation only adds to the development potential of the Dong Nai real estate market, the study finds.
These include the new Dong Nai Bridge, HCM City-Long Thanh-Giau Giay Express Highway, the Phuoc An Port and the Long Thanh International Airport, and the extension and upgrade of National Highway 51.
A HCM City development plan recently approved by the Prime Minister conceives of Dong Nai as a modern urban area with hi-tech areas and service centers.
Pollution drawback
Recognising the province’s manifold advantages, many leading real estate companies at home and abroad have already developed new residential construction projects.
They include Sonadezi, Tin Nghia, Housing and Urban Development Cooperation (HUD), Urban Development Investment Joint Stock Company (UDICO), Infrastructure Development and Construction (LICOGI), Singapore-based Keppel Land and VinaCapital.
Independent market watchdogs however said that to make the use of these advantages to develop the local real estate market, provincial authorities must focus efforts on settling the issue of environmental pollution that is considered to be the province’s biggest obstacle at present.
(Source: VNS)
