Infrastructure development to be the prospect for the real estate market recovery
- Since 1H2023, sepecial urban cities in Vietnam (Hanoi, Ho Chi Minh) have restarted the progress of Ring road and highway system construction, as part of fiscal policies to support economic growth. The Ring road 03 and the Bien Hoa -Vung Tau expressway in HCMC organized groundbreaking ceremonies on June 18, as more than 81% of the land needed for the section of the project that crosses the city are handed over. The Ben Luc – Long Thanh highway (which is a part of Ring Road 03 and connect HCMV with Long An and Dong Nai provinces) is on the process of re-construction. The completion time will be in 2025. Those form the transport route connecting Mekong River Delta – HCMC – Southeast region.
- In the short-term, we expect that the kick-off of those projects will warm up the real estate market which has been on frozen status since 2022. In the long-term, as the market recovers and becomes more attractive for customers, projects located near the ring roads/highway system will get benefits.
- For the eastern North-South Expressway, the Ministry of Transport will try to put expressways into operation by 2025, with the goal to connect economic regions, especially between the Central and the Northern and Southern regions. In the long-term, it will be the support factor for the hospitality real estate market, especially for coastal cities in the South Central Coast. However, lack of corridors will be the bottleneck for this segment, and we expect the issues to be resolved from late 2024, after related amended Law (the Land Law, the Real Estate Trading Law, the Housing Law) are completed.
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