Real estate welcomes public investment in infrastructure

In fact, when public investment is boosted and a series of key transport infrastructure projects are implemented, these areas attract the attention and cash flow of investors. The real estate market in that area will benefit greatly, prices will increase, and product liquidity will be easier.

Mr. Huynh Tuan Kiet, Director of CBRE Housing Marketing Department (US Commercial Real Estate Investment and Services Company) in Vietnam commented: Infrastructure is a factor that greatly affects the real estate market. For example, the Government's public investment plan in the Southern region includes a lot of airports, belt roads, highways and expressway projects in the West...

It is easy to see that in the southern region, beltways and highways will create a trend of developing centrifugal urban areas, because the current costs are high and there is not much land left in the central area. From there, it opens up opportunities for Binh Duong, Long An provinces or suburban districts such as Binh Chanh, Cu Chi of Ho Chi Minh City.

"Or the metro system has created the general appearance of the entire Eastern area of ​​Ho Chi Minh City. Projects built along the metro have had very high price increases, from 50 - 70%. In particular, there are projects that have increased by nearly 150%," Mr. Kiet cited.

Economist Dinh The Hien expressed his opinion: The Southern real estate market is centered on Ho Chi Minh City and has a radius of 100 km. Therefore, real estate speculators should forget about places where "good land attracts birds" and instead look for places with rice for birds to eat.

According to Mr. Hien's analysis, the "rice-rich" land depends on the commercial service factor. Industrial zones springing up in places with good infrastructure, clear roads and especially seaports will be places that attract "birds to eat".

In the coming time, the infrastructure of the Southern region, after many years of stagnation, will have new steps forward. In 2025, when the Bien Hoa - Vung Tau Expressway, Ben Luc - Long Thanh Expressway, Ring Road 3... are completed, it will create a breakthrough for the key economy of the Southern region. Therefore, the space and development momentum for real estate in this area will have a bounce.

Similarly, in the Northern region, Mr. Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn pointed out: The real estate market still has many areas with great potential thanks to the good price growth rate.

In the coming time, the North and especially the East of Hanoi will be of interest to many investors. Because these areas are concentrated in the suburbs with large urban projects, with systematic investment.

A survey by Batdongsan.com.vn in the North also showed that 31.7% of real estate brokers participating said that the North of Hanoi, specifically Dong Anh and Me Linh districts, will be the place to "catch the wave" of real estate with the growth of supply and transactions in the coming time. Next to the East is Gia Lam district (29.8%); the South is Hoang Mai district, Thanh Tri district (14.9%) and the West is Hoai Duc and Dan Phuong districts (12.5%).

Among them, the east of Hanoi has the advantage of large land funds and diverse real estate supply. There is an expanded transport infrastructure such as Ring Road 2, Ring Road 3, Chuong Duong Bridge, Thanh Tri Bridge, Vinh Tuy Bridge... Currently, the planning of metro lines 1 and 8 is expected to be accelerated further with the expectation of connecting the east with the center of Hanoi.

The North of Hanoi benefits from the Ring Road 2 and Ring Road 3 systems and has many large bridges such as Nhat Tan Bridge, Thang Long Bridge and soon Tu Lien Bridge... This is also the place where many projects of large urban areas are planned to be concentrated such as: Soc Son is expected to be one of the 5 satellite cities of Hanoi...

According to Ms. Nguyen Hoai An, Senior Director of CBRE Vietnam, Hanoi Branch, the attractiveness of prices, along with the increasingly enhanced and improved infrastructure network, will help these areas have a lot of potential for development and price increase in the next 3-5 years.

In addition, Gia Lam, Dong Anh, Thanh Tri, Hoai Duc, and Dan Phuong districts are preparing to become districts in the 2023-2025 period, which is also a factor causing real estate in suburban areas to explode and have many growth prospects in the near future.

It can be seen that promoting public investment is expected to revive the real estate market. Dr. Hoang Van Cuong, National Assembly delegate, Vice President of the National Economics University commented: To solve the bottlenecks that are currently causing the decline of the real estate market, it is necessary to promote public investment; in particular, focusing on completing unfinished infrastructure projects.

“In a special context, special solutions are needed; including changing regulations on public investment; having policies such as placing orders with private individuals and large economic groups instead of letting state agencies implement according to traditional procedures, only then can we speed up the process and achieve the desired results,” Mr. Cuong emphasized.

Real estate plays an important role in the economic recovery process. This market is gradually recovering thanks to the "support" from policy factors and the motivation to disburse public investment capital. Therefore, accelerating the disbursement of public investment capital for infrastructure projects will help promote real estate development; at the same time, creating a good support and foundation for the market in the following years, thereby helping to recover the economy.