The acceleration of investment in transport infrastructure is the main driving force fueling real estate stocks as many businesses with large land plots located in areas near key infrastructure projects will benefit from this process.
Public investment pushes real estate market / Illlustrative image
Hanoi - The acceleration of investment in transport infrastructure is the main driving force fueling real estate stocks as many businesses with large land plots located in areas near key infrastructure projects will benefit from this process.
The Government has released the medium-term public investment plan for the 2021-2025 period with a total capital of up to 2.87 quadrillion VND (120 billion USD), an increase of 43 percent compared to the 2016-2020 period. The capital is mainly for investment in transport infrastructure in provinces.
According to Viet Dragon Securities Co, the total infrastructure investment in the 2021-2025 period in Hanoi is 332 trillion VND, HCM City 638.5 trillion VND and Dong Nai 595 trillion VND.
In the South, it is apparent that most of the key infrastructure projects under construction or planning will pass through Dong Nai province, namely Long Thanh International Airport, Ben Luc – Long Thanh Expressway, Bien Hoa – Vung Tau expressway, and Dau Giay - Phan Thiet Highway.
Dong Nai real estate market is of special interest to investors. Many large constructors have also become involved in this market such as Novaland, DIC Corp, Dat Xanh and Nam Long, to take advantage of opportunities from infrastructure development.
Deputy Prime Minister Le Van Thanh sent a document asking the People's Committee of Dong Nai to focus on speeding up the progress of compensation for land clearance and resettlement for people, helping speeding up the construction progress of the Long Thanh airport project phase 1.
By the end of August 2021, Dong Nai had approved the compensation plan for 4,584 cases with an area of more than 1,900 hectares and a total amount of compensation of more than 9 trillion VND.
The Provincial People's Committee has also proposed that the Government support the locality with more than 4 trillion VND to invest in two roads connecting Long Thanh airport, including provincial road 763 and provincial road 770B.
According to analysts, real estate projects located around the airport will benefit in the future.
Source: VIR.