Quang Ngai province ready for real estate boom

Quang Ngai Province, strategically located in the central region and along the East-West economic corridor is expecting a real estate boom in the next 3 ~ 5 years because of its geographic location and low property prices. 

Quang Ngai is 145 km from Da Nang, and is 883 km south of Hanoi and 838 km north of Ho Chi Minh City.   The province has a convenient transport infrastructure that connects by air, rail, road and waterway systems with neighboring economic zones and countries. Because of this, its industrial, tourism and marine economic sectors are expected to boom in the next few years.

Based upon second quarter of 2018 statistics, Quang Ngai’s “Gross Regional Domestic Product (GRDP) was estimated to rise 9.23%over the same period last year. The industrial sector increased by 16.15% and the service sector grew by 7.14%.

As an industrial location, Quang Ngai is one of the five coastal economic zones that have been prioritized by the Government to receive investment in infrastructure and offer the strongest incentive schemes in Vietnam.

The Quang Ngai Dung Quat economic zone has an area of over 45,000ha for industrial development and the Dung Quat – Quang Ngai deep-water port is capable of receiving ships of up to 100,000 tones, which makes it an important gateway for importing and exporting goods. 

Related to the growth of services, this is attributed to increases in tourism, including increases in both domestic and international visitors.  It is estimated that 810,000 tourists visited Quang Ngai in 2017, an increase of 12% over 2016 arrivals.   Total tourism revenue was estimated $30.4 million USD, an increase of 10% from 2016.

Quang Ngai City created plans for increased economic development in the 2016 ~ 2020 period that focuses on two key areas, the urban economy and the marine economy.  The city believes that the development of marine and island resources will become one of the city’s key economic sectors.

Marine development will focus on the province’s 130km-long coastline, with beautiful beaches such as Binh Chau, My Khe and Sa Huynh.  Development will also include Ly Son Island which is located off the coast and known for the variety of seafood that is caught and then exported to the rest of the country.

In order to become a location that appeals to tourists, the city government has focused investment in urban planning with a goal of expanding the city towards the sea and upgrading the transportation infrastructure. 

A number of key tourism projects are in development including the Anh Van Ecological Resort project in the My Khe beach area, the Central Park project in Tinh Khe Commune, the Emerald Island project and the Van Tuong Ecotourism Area.

The province has also implemented other key projects, the Cua Dai Bridge linking the central coastal provinces, the Da Nang – Quang Ngai Highway, the Hoang Sa and Truong Sa routes along the banks of the Tra River and the dam upstream of the Tra Khuc River.

Quang Ngai’s strategic plans and investments have created momentum for the real estate market in the province with series of new projects that are being developed on the two sides of the Tra Khuc River.  An area of 252 hectares along the river has been the focus of detailed planning and most of the land plots in this area have been handed over to investors for development in accordance with the city’s plans.

Real estate expert, Tran Xuan Thong, who is the General Director of Dat Xanh Da Nang, said that the real estate market in Quang Ngai is still in the early stages of development and real estate prices are much lower than in the neighboring cities of the central region.

According to Thong, “In the near future, the development of transport infrastructure and a series of new projects, including the launch of Quang Ngai – Da Nang Highway at the end of July 2018, will be the driving forces for Quang Ngai to become a major economic and tourist province of central Viet Nam. This is also the lever for the breakthrough of the real estate market in Quang Ngai.” 

Nguyen Phong, Director of Quang Ngai Province’s Construction Department, said the most difficult obstacles facing the real estate sector are compensation for land and the land clearance process.  Quang Ngai landowners who are being asked to sell their land are asking for compensation equivalent to the market prices and investors must reach agreements with residents before they can start their new projects.

In comments to Vietnam News, Phong said that, “Quang Ngai Province has been providing favorable policies to attract investors in order to develop the property sector as well as enhance urban development. The province is ready to support investors in planning and administrative procedures that will boost the real estate segment in the coming years.”