New regulations in the city to tighten the issue of licences to property projects resulted in a drastic drop in supply, boosting the real estate markets in neighbouring provinces, he said.
But there is an imbalance in the development of satellite cities, affecting the implementation of the master plan, he said.
Le Do Muoi, head of the Transport Development and Strategy Institute, said investment in traffic infrastructure is vital to ensure connectivity between HCM City and satellite cities and synchronised transportation.
Improving traffic infrastructure is now a priority, he said.
In recent years infrastructure for travel between the city and provinces in the HCM City region has improved, resulting in the mushrooming of new urban areas, he said.
This has enabled investments to flow easier into neighbouring provinces, he said.
But a high concentration of property and urban development projects to the east of the city, including in Binh Duong and Dong Nai provinces, has resulted in skewed development and placed a strain on transport systems in its gateways.
Nguyen Hoang, R&D director at DKRA Vietnam, said the HCM City real estate market has for years spilt over into its neighbouring provinces, and their markets thus have close links and affect each other.
Last year the market in neighbouring provinces saw positive growth, which made up for the decline in all segments in HCM City, he added. — VNS