Real estate market to heat up along Ring Road 3

July, 13/2022 - 07:58
The real estate market along under-construction Ring Road No. 3 is expected to heat up as HCM City and the provinces where the road passes through ramp up efforts to complete it by 2026, property insiders said.

 

A map of Ring Road No, 3 which passes through HCM City and the neighbouring provinces of Đồng Nai, Bình Dương and Long An. Photo en.vneconomy.vn

HCM CITY — The real estate market along under-construction Ring Road No. 3 is expected to heat up as HCM City and the provinces where the road passes through ramp up efforts to complete it by 2026, property insiders said.

They warned, however, that investors should not speculate and depend too much on financial leverage from credit institutions.

Speaking at a recent meeting, Trần Thế Anh, sales director of Thắng Lợi Group, said that with limited land in the inner-city where prices remain too high, investors had shifted to the suburban real estate segment.

There would be a significant amount of investment, especially in urban and industrial property projects, along the ring road, he said.

The ring road would play a very important role in stimulating development and improving connectivity in the Southern Key Economic Zone, he added.

Long An Province, in particular, has a significant advantage due to its proximity to HCM City, the country’s largest economic hub. Many investors have come to the province to develop their property projects.

Trần Thị Cẩm Tú, general director of EximRS Real Estate Joint Stock Company, said the real estate market would heat up where transport infrastructure projects are implemented. 

"The ring road is a huge investment, passing through HCM City and the neighbouring provinces of Đồng Nai, Bình Dương and Long An, and is expected to contribute to socio-economic development for the whole Southern Key Economic Zone," she added.

Tú recommended that when investing in suburban real estate, investors should choose projects which have complete legal status and are developed by large and reputable firms.

The projects must also be well connected with other areas in the region and are full of amenities, such as schools, hospitals and malls, among others, she said. 

Investors should not depend too much on financial leverage from banks, as Tú recommended it should be lower than 40 per cent of the property’s value. They should focus on long-term investment, instead of speculation, according to Tú.

Slow progress

Experts said construction progress on the road has been slower than expected.

National Assembly Deputy Nguyễn Thanh Hải (Long An Province) said that due to the importance of the project, the Government should give priority to allocate capital for the project. 

Any issues related to compensation and site clearance should be resolved in order to speed up progress, he added. “It is also vital for relevant agencies to speed up auctions of land along the road to raise funds.” 

Dr Trần Đình Thiên, former director of the Vietnam Institute of Economics, said it was necessary to create an urban development space for the whole region, focusing on the development of other transport routes, including waterways and railways, in addition to the ring road.

Approved 11 years ago, the project will be built with public investment using the budgets of the State and the city and provinces where the road will run through.

HCM City is expected to allocate a total of VNĐ24 trillion (US$1 billion) from the municipal budget to build the road over the next 10 years under a resolution passed recently by the People’s Council.

The ring road will be linked to national highways No. 1A and No. 22, and the Bến Lức-Long Thành, HCM City-Trung Lương, HCM City-Long Thành-Dầu Giây and HCM City-Mộc Bài expressways.

It will also reduce travel time between several localities and reduce the number of vehicles entering the city centre, reducing traffic jams and accidents in the area. 

Identified as a key and urgent traffic project for 2021-25, the 92km-long road will have four lanes, while parallel roads will have two or three lanes each.

Only some sections have been completed, and the entire project is expected to be completed by 2026. — VNS     

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