Delegates at a seminar on “Real estate market trends after COVID-19” held in HCM City on July 16. — Photo congan.com.vn

HCM CITY — Many HCM City property developers are moving to neighbouring provinces since the city is running out of land and prices are too high.

At a seminar on “Real estate market trends after COVID-19” held in HCM City last week, Võ Huỳnh Tuấn Kiệt, associate director and head of residential project marketing team of CBRE Việt Nam, said the city market would continue to be affected by the impacts of the COVID-19 epidemic, but housing demand remains steady, especially in the low-cost segment.

Lê Hoàng Châu, chairman of the HCM City Real Estate Association, said housing supply has been reducing year after year.

Profits are not high, especially since the tax in the real estate sector is very high, one of the main reasons for this, he said.

Because of limited availability of land in the city, developers are gradually moving to neighbouring provinces, he said.

Many have begun to develop projects in provinces like Long An, Bình Dương, Đồng Nai, Bà Rịa-Vũng Tàu, and Bình Phước.

These provinces are well-connected with key economic, financial and tourism centres such as HCM City, Đồng Nai, Bà Rịa-Vũng Tàu, and Phan Thiết.

Kiệt said they also have abundant land parcels and have in recent years focused investment into developing transport infrastructure, all of which have made them likely to become the next hotspot for investors and buyers.

According to real estate insiders, the government's policies of encouraging urban residents to move to suburban areas in order to free more space in the HCMC’s downtown area is another key driver of growth for satellite cities around the city.  VNS