In the context of rising prices and increasingly scarce land banks in Ho Chi Minh City, the grounds and townhouses in the suburban areas have become a segment that attracts investors after Covid-19. Investors are currently favouring the ground in the suburbs after the epidemic. Let’s find out and evaluate the ground in the suburbs of Ho Chi Minh City with Moonka in the article below.

Why is the ground easy to “fever”?

According to experts’ forecasts, the ground is still the favourite segment of investors. In 2022, interest will be raised in some areas. However, it is challenging to take place a large-scale land fever as happened at the beginning of 2021. This is because local authorities have taken measures to prevent land fever, causing disturbances to the market the whole time. According to DKRA Vietnam’s forecast, the ground in provinces adjacent to HCMC (or big cities) is still the top priority channel. However, the new supply may not be as superior as in previous years because many local authorities are reviewing and tightening the subdivision of plots for sale. Also, according to DKRA Vietnam’s forecast, the secondary price level of the grounds will remain stable, and it is unlikely that there will be strong fluctuations in 2022. New supply may increase compared to 2021 and will be mainly concentrated in the neighbouring provinces such as Long An, Dong Nai, Binh Duong and Ba Ria-Vung Tau. Market demand has recovered compared to 2021. However, the uptrend mainly focuses on the late 2022 period.

The grounds in the East and West of Saigon

The real estate market reports of CBRE and Savill in the fourth quarter of 2021 both show similarities that the supply of apartments, townhouses and villas in Ho Chi Minh City continues to decline and is the lowest in the past six years. As for the type of the ground, Ho Chi Minh City continues to be short of new supply. Most of the products being traded today come from small-scale projects, retail or land properties that are resold and rebought many times. Mr Troy Griffiths – Deputy General Director of Savills Vietnam, said that limited supply in Ho Chi Minh City has motivated buyers to look for investment opportunities in other provinces. Therefore, the expansion to the neighbouring areas and the endurance of investors are expected in 2022 (Source: Youth Newspaper).

According to a report by, in the late 2021 – early 2022 period, provinces bordering Ho Chi Minh City such as Binh Duong, Ba Ria – Vung Tau, Long An and Dong Nai all witnessed strong growth in demand for real estate, which increased over 50%. Most of the interest in Binh Duong and Dong Nai markets focuses on townhouses, villas, mid-range apartments. Particularly in Long An, interest focuses on the type of the ground with an increase of up to 64%. Duc Hoa has the highest number of advertisements in the province, two times higher than Can Giuoc and three times higher than Ben Luc.

Along with the rapid urbanization, the scarcity of land supply for a long time has pushed the land price in the West of Ho Chi Minh City to increase significantly. Statistics from the website, the cost of retail the ground in the  West Saigon with an area of ​​​​70 – 80m² is about 3 – 8 billion VND/plot depending on the location. Notably, the ground projects deployed from previous stages and located along National Highway 1A, National Highway 22, Binh Chanh area, District 12, Tan Binh, Hoc Mon, Cu Chi range from 30-35 million VND/m²

Meanwhile, with the advantage of “soft” price and the focus of a series of important traffic projects that are being kicked off, satellite urban areas are increasingly appreciated. For example, in Duc Hoa – Long An, several red book ground projects are being introduced to the market by investors with prices ranging from 1.2 to 1.4 billion VND/lot, equivalent to about 18 – 20 million VND/m². Spreading the heat from the West, Duc Hoa impresses the investors thanks to its significant growth potential. The selling prices of these projects in the period from 2019 and earlier only achieved around  8-9 million VND/m². It is estimated that the adjusted price level will double within three years.

According to experts, for the ground segment, in 2022, the new supply is forecasted to grow strongly compared to 2021 and mainly focus on markets in the neighbouring provinces such as Long An, Dong Nai, Binh Duong and Ba Ria – Vung Tau. The projects are primarily concentrated in the coastal areas such as Cu Chi, Binh Chanh, Hoc Mon, District 9 (old) and most of them are small-scale projects (Source: Cafebiz).

Market demand is forecasted to recover compared to 2021. However, the uptrend will mainly focus on end of 2022. The secondary price level is also highly likely to remain stable, it is pretty challenging to have remarkable upward in 2022.

What is the price of the ground being traded?

According to the Ministry of Construction, recently although the economy has had deflation due to the impact of the pandemic, the prices of real estate, houses and the ground have continued to increase from the beginning of 2021. As of the end of 2021, individual housing prices in the project have increased by 15-20% and the ground prices have increased by 20-30% compared to the end of 2020.

The Vietnam Real Estate Brokers Association noted that the land is boiling everywhere and the price is rocketing with an average increase of 10% per month. Locally, the growth is more robust in some places, most notably in the suburbs of Hanoi such as Quoc Oai (up 20%), Ba Vi (45%); Hoa Binh (46%); Bac Ninh (20%); Hung Yen (26%)

According to the report, in 2021, the whole country has 170,465 successful the ground transactions. Only in Hanoi, there are 10,875 successful transactions and there are about 14,443 successful transactions in Ho Chi Minh City

However, many brokers take advantage of the crowd effect to sell real estate products without legal documents, agricultural land that has not been applied for residential, and land that has not been divided. In case the land has not been split, the person with the land use right can still sell it. However, the buyer of the land who has not divided the land will face many risks.

The article sums up interesting knowledge about the ground evaluation in the suburb of Saigon. We are wishing Moonka investors a successful investment!

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