Investors house hunting in Binh Chanh causes price surge

After a lot of changes in planning, many investors are property hunting in Binh Chanh to prepare for the opportunity of price increase.

Aiming for land in Binh Chanh as soon as the news about Binh Chanh becoming district came out, Nguyen Trung Nghia (district 6, HCMC) shared that it was not surprising that land price in this area continued to escalate over time. Been following the market since the beginning of the year, Nghia said that even during lockdown, many investors quietly searched and acquired land and apartments in this area. Especially since mid October till now, the property hunt has been more aggressive as notary services become easier after the city reopened.

“Binh Chanh is undergoing changes in administrative planning, making it more attractive. This area inherently has low housing prices in Ho Chi Minh City, and diversifying land funds, so it is easier to find suitable products than other areas. Without comparing to the East, housing prices in Binh Chanh are much lower than in Nha Be, and the increase margin is also larger. Thus it is easy for mid-end investors to find and buy real estate. After Binh Chanh’s proposal to convert to a city was known, more investors rushed to the area and the land price also increased as a consequence" Nghia said.

Property hunting has become more aggressive in Binh Chanh since this district proposed a roadmap to convert to a district/city in 2025. Illustration

Binh Chanh real estate market has become an investment attraction in Saigon South area after a series of information about it converting to district/city. As noted by Batdongsan.com.vn, since this district confirmed the transition to the district (quarter 1/2021), the demand for real estate has increased 30-40% over the same period. In the third quarter of 2021, during the time of social distancing, many places recorded a sharp decrease in the demand for housing, but the southern districts still had a good recovery rate, especially in September 2021, the demand for housing in Ho Chi Minh City was still growing. This increased 35%, and in October and November, the number of real estate buyers in this area doubled sharply during the period of the gap.

The wave of investment poured in, causing Binh Chanh real estate prices to continuously escalate. According to the HCM City Department of Construction, when I first heard about the fact that Binh Chanh district can be converted into a city/district, the price of land in the population has increased. 6 months ago, the price of Binh Loi commune was about 2 billion VND/person, now the land has increased quite high, far exceeding the above figure. Currently, the project land in Binh Chanh ranges from 35-220 million VND/m2 depending on the area, the average price of apartments is 37-45 million/m2. At the beginning of the fourth quarter of 2021, real estate prices in general did not have big changes, but there were still some places with an increase of 3-5% compared to the beginning of the year.

In the context that the supply of real estate in the central districts of Ho Chi Minh City is constantly standing still, the wave of real estate hunting is pouring into the suburban districts of the South and the East, in which the South is having the upper hand because of its ownership of many projects. The new project was implemented with a series of information on administrative and infrastructure transformation. Most of the buying power for apartments is concentrated on large-scale urban projects, while most of the land plots are small projects and free residential land.

Welcoming the wave of investment, many businesses with projects deployed in this area are actively selling at the end of the year and recording a strong increase in buying demand. Recorded from investor Nam Long Group, this business has just launched 166 Flora Mizuki MP9 – MP10 apartments belonging to Flora Mizuki Park Binh Chanh project. According to Nam Long's representative, Flora Mizuki has a selling price of from VND 2.5 billion/unit, an attractive price in the context of a limited supply of apartments priced at about VND 2-3 billion in the HCMC market and housing prices. Binh Chanh increased continuously, so the project recorded a large number of interested customers. Nearly 40% of buyers last time were investors hunting for hoarding. Currently, this urban area has more than 3,000 households living.

Housing supply in Binh Chanh market is considered to be insufficient for the speed of urbanization and population growth of this district. Illustration

Another project in Binh Chanh, the Westgate, was launched by An Gia Real Estate Group in Q4 this year. With a total area of 3.1 hectares, the Westgate luxury complex includes 4 20-storey towers, providing the market with 2,000 apartments in the center of Binh Chanh, at the price of approximately VND 40 million per m2. Three out of four towers were sold successfully to the market given positive signals. The last tower is now open for sale.

Furthermore, a series of existing urban areas including Corona City Binh Chanh, Charmington Golf & Life Binh Chanh, Tan Tao Central Park, South Riverside, Lavila De Rio, Lovera Vista, etc. have been traded actively in the secondary market with selling prices increased by 5-20% compared to the initial prices.

Commenting on the development potential and orientation of Binh Chanh's regional construction planning, Nguyen Thien Nhan, former Secretary of Ho Chi Minh City Party Committee, said that Binh Chanh is the most populous district, has the longest border from South to West and location at the entrance to Mekong Delta, with the main traffic routes of HCMC and surrounding areas. In addition, the economic and trading scenes in Binh Chanh are very vibrant and diverse. In the coming time, Binh Chanh will be a traffic and logistics hub, not only for Ho Chi Minh City but also for the Southwest region. The district is aiming towards becoming an industrial and smart city with zero emissions; a center of high-quality healthcare and entertainment services for both Ho Chi Minh City and the southwestern provinces.

Secretary of Binh Chanh District Party Committee, Tran Van Nam added that, besides the advantages and potentials in recent years, the rapid urbanization rate and the annual population increase of over 30,000 people also caused shortage of housing and accommodation. The proportion of land types is not reasonable for the economic structure and population growth of the district. Indeed, more than 58% of land used for agricultural purposes has affected people's life and economic development. The governmental structure based on units of districts and communes is no longer suitable for urbanization and growth. The Party Congress has approved the proposal of converting Binh Chanh into a district or city in the 2021 to 2030 period.

Source: batdongsan.com.vn