Public investment offers fresh impetus for real estate

With total public investment for the year projected at nearly $38.5 billion, most of it allocated to infrastructure, Vietnam's real estate market is expected to continue benefiting.

- By Binh An

Vietnam is entering an unprecedented phase of large-scale infrastructure development, with more than 3,000km of expressways under construction alongside a series of key aviation, seaport, and urban infrastructure projects.

Beyond easing traffic pressure, these projects are expected to play a strategic role in reshaping the country's economic development landscape.

Speaking at the annual conference of the Vietnam Real Estate Association held in Hanoi on March 12, vice chairman Nguyen Van Dinh said the market is expected to develop strongly as many major infrastructure projects move into completion or key operational phases.

"Stronger connectivity among economic hubs through expressways and ring roads will directly create new real estate development corridors, particularly in satellite areas surrounding Hanoi, Ho Chi Minh City and other major cities of the country," Dinh said.

Public investment will serve as a major growth driver for the property market, as total capital is estimated to reach $38.45 billion in 2026, the highest level in Southeast Asia, with 80 per cent earmarked for infrastructure development, Dinh added.

In the south, Ho Chi Minh City continues to serve as the strongest growth catalyst as key infrastructure projects such as the ring roads 3 and 4, the Bien Hoa-Vung Tau Expressway, and connectivity networks linked to the Long Thanh International Airport are all accelerating simultaneously.

Dong Nai province is currently the most frequently mentioned locality in land expansion strategies pursued by both urban developers and industrial investors, benefiting from a dual advantage of the international airport and an expanding interregional transport network.