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Binh Duong real estate heats up
A strong interest in the real estate market in the new Binh Duong City has surprised and delighted developers, and encouraged a boom in future development opportunities.
Developers of the Gold Town project, consisting of 112 houses ranging in price from VND5 billion to VND8 billion ((US$264,000-$421,000) per unit in Binh Duong's downtown area, have sold all of their properties just three weeks after they hit the market.
The real estate market in Binh Duong, where properties sell for a comparatively low price of less than VND1 billion (US$52,600) per house, has long been considered a key market for major long-term investment.
Evidence that the market can change quickly was shown when a number of street-front properties fetched up to VND8 billion ($421,000) within the last few weeks.
The Gold Town project, located in the centre of the new Binh Duong City which is considered by many as the most favourable commercial area in Binh Duong, has had sales that have surpassed investor expectations.
In only three weeks, developers sold 40 houses on their own and another 70 were sold by their distributors.
Sa Cong Danh, the owner of the Gold Town project, said it was a surprise that his project did not have to wait for buyers.
Regional investors
According to experts, investors in the new Binh Duong area are primarily from other southern provinces and HCM City. Land prices would become even more overheated if investors were to come from the north, they said.
The initial success of the Gold Town project has fuelled other investors to prepare to launch their own large scale projects.
A multi-million-dollar villa project will begin immediately on a total area of 7.3ha. The project will include 110 intelligent villas, all fully equipped with luxury appliances, that are expected to attract the very wealthy. Another project, Aroma luxury apartments, will target foreign experts who are working in Binh Duong.
According to authorities from Binh Duong Province, there are currently 4,500 foreign experts working in Binh Duong but they are forced to live in Phu My Hung urban area in HCM City, which is a significant commute.
In general, the land price in the new downtown area is around VND35 million to VND40 million ($1,842-$2,105) per square metre, and street-front houses are fetching from VND5 -VND6 billion ($263,157-$315,789) per unit on average.
According to Becamex IJC, the new city investor, high value housing transactions are selling out soon after they are put on the market, despite the high prices. They said this was vivid evidence of the rising demand for real estate and also reflected the economic potential and strength of the future city.
At the moment, the gap between the buy and sell price for land has increased between VND10 million to VND300 million per lot.
Le Quoc Hung, Director of the project, said the Eastern International University would enrol around 2,500 students in its first school year in 2010-2011. After graduation, they would become the first white-collar residents in the new city.
By 2020, the city's population is expected to reach between 2.5 million and 3 million people, up from the current 1.5 million.
vietnamnews
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