A prime example is the area between Bien Hoa, Long Thanh and Nhon Trach, where land use prices have jumped to nearly as high as the upscale District 2 in HCMC.
Most notable is Dong Nai Province, where land on the main streets of Bien Hoa now costs from VND72-90 million per square meter (US$3,150-3,980), which is nearly equal to some urban areas in HCMC.
Local residents and real estate agents said the price doubled last year's, and has climbed a further 30-50% so far this year.
Traveling southeast roughly 27 kilometers from Bien Hoa, prices in Long Thanh District have also risen since the beginning of May. In Trang Bom District, residential and agricultural land use prices have risen by up to 7 times in the past 1-2 years.
Vice chair of the International Business and Marketing Department at the HCMC University of Economics, Huynh Phuoc Nghia, said there are a number of reasons behind the steep increase in real estate value.
One reason of them is infrastructure improvements in those areas.
Real estate prices have slipped in the last four years, so many investors are looking at it as a safe sector to invest in.
However, he also pointed out that some real estate agents have tried to inflate land prices.
He advised buyers to research their investments thoroughly before making a decision.