Real estate market in the city's east benefits from new transport infrastructure.
Real estate agents and potential buyers are now paying greater attention to the eastern areas of Ho Chi Minh City because of new transport infrastructure in place or being built, such as the metro line, ring roads, and expressways.
Van Phat Hung, a company previously focused on the city’s south is now looking east. It liquidated its land in District 7 and Nha Be district this year and is increasing its capital in other ways to develop housing projects in District 2, District 9 and Thu Duc district.
Nova Land, meanwhile, normally operates in District 4, District 7 and Phu Nhuan district but over the last two years has started high end projects in District 2 and another in District 9.
In mid-April Gia Hoa announced its project of 1,700 apartments in a premium residential area of District 9, and the Dat Xanh Group is targeting Thu Duc district with its Sunview Town project and the Tam Da condominium project. Khang Dien already owns over 100 hectares of land to the east but plans to double its holdings this year, according to Mr. Ly Dien Son, Chairman of the Board of Directors of the Khang Dien Company.
With the greater interest comes hotter competition. “We were in negotiations to buy land in Districts 2 and 9 but our competitors beat us to it,” said Mr. Nguyen Xuan Quang, Chairman of Nam Long.
The development of transport infrastructure has made the city’s east much appealing. The metro line will give the area a new look and push up prices and encourage investors to start new projects. Retail space along with office space will also be seen in larger amounts soon, according to Mr. Marc Townsend, CEO of CBRE Vietnam.
“Thanks to the boost in infrastructure, real estate in the eastern city of the city has undergone the fastest acceleration in the last ten years,” said Mr. Nguyen Xuan Loc, General Director of Techcomreal.