About to become an international port city, Phu My still lacks luxury apartments

Real estate map viewed from Vietnam's industrial and port cities

DKRA's third quarter real estate report said that Binh Duong's apartment supply accounted for 38.1%, second only to Ho Chi Minh City. The remaining provinces such as Dong Nai and Long An all recorded new supply introduced to the market, even Tay Ninh has joined the apartment development race.

Port cities, typically Hai Phong, have also seen a fairly rapid growth rate in apartment development over the past ten years, and projects have recorded a steady price increase, with the highest reaching nearly 100 million VND/m2.

In fact, localities with strong industrial and port development always have a vibrant apartment market. Because in addition to meeting the needs of experts, engineers or young families, apartment development is also considered one of the signs that these localities are on the way to becoming more modern.
Vision of Phu My international port city (Illustration with AI support).

Phu My town currently owns 60% of the area and growth value of the industrial sector of Ba Ria – Vung Tau province, attracting 90% of the province’s foreign direct investment (FDI). In the next few years, Ba Ria – Vung Tau’s industry can reach a key position in the South with a 1,000ha specialized industrial park project, with an investment capital of 6.7 billion USD.

In terms of seaports, this future city is gradually asserting its position in the international arena. In June, the Cai Mep – Thi Vai port cluster in Phu My was ranked in the top 7 most efficient ports in the world, surpassing major ports such as Japan, Hong Kong (China) or Singapore…

According to statistics in 2022, Phu My contributed 30,625 billion VND to the state budget, higher than the total revenue of 11 other provinces and cities. This is clear evidence that the position and key potential of this town are not only valuable to the region but also to the country.

Despite its prominent position in the economy, Phu My’s apartment products are still considered to have much room for development. According to a survey, Phu My real estate is mainly associated with land plots and small-scale townhouses. The entire town currently has 2 apartment projects in the affordable segment that have been put into use, with a total supply of less than 1,000 units.

With about 15,000 experts, senior and middle managers... working in industrial parks and seaports in the area, the current apartment supply is forecast to be difficult to keep up with the development pace, causing the market to lose a large number of potential customers, leaving real demand unfulfilled. Especially with the 2025 planning of Phu My becoming a city, starting the next acceleration roadmap, quality human resources will increasingly flock in, therefore, the development of high-end apartments is an inevitable and very necessary need.
The lack of apartment supply has left the real housing demand in Phu My unfulfilled (Photo: perspective of CityMark Residence project).

First mover advantage

The lesson of real estate development in Vietnam’s industrial and seaport pillars is a mirror reflecting the great potential of the Phu My apartment market. At present, many investors have seen the potential of apartment projects developed in seaport cities such as Phu My.

According to batdongsan.com.vn, Phu My apartments have just achieved an impressive price increase of 10% in the first 9 months of the year, while recording rental profits of up to 7.6%, the highest in the country (Vung Tau City at 4.3 - 4.6%, Ho Chi Minh City 4.1%, Hanoi 4.5%) with an occupancy rate of 90% from actual residents or long-term lease contracts. Rental prices range from 6-7 million VND/month for a 43m2 apartment and 8-10 million VND/month for a 55m2 apartment. According to forecasts, for high-end apartments, rental prices may be 40-60% higher than the current market price list.

A director of a real estate trading floor in Ho Chi Minh City analyzed that investing at the pioneering time, customers benefit greatly because the purchase price is still low. In addition, due to the limited supply in the market, it promotes vibrant secondary transactions, new projects are always the focus of attracting outstandingly high rental demand, leading to good rental prices.

Recently, the CityMark Residence apartment complex, invested by Tumys Homes and developed by BHS Group, has officially launched with many upgrades. This project is expected to be topped out in early 2025 and handed over in early 2026, which is also the time when Phu My becomes a city.

“With a system of utilities according to high-class living standards and outstanding neoclassical architecture, CityMark Residence will rise to become a symbol of the port city,” the project investor representative expects.

Source: Dan Tri Newspaper