City's eastern area taking off with a range of new urban areas and apartment projects.
In previous years the south of Ho Chi Minh City, especially the Phu My Hung urban area, was considered the city’s ideal destination by many investors. Improved infrastructure, however, has recently triggered a shift in property investment from the south to the east of the city, where a number of large-scale real estate projects have appeared.
Many real estate companies have joined the race to the east. Vingroup officially launched Landmark 81 recently, an 81-storey high-rise complex that is part of Vinhomes Central Park in Binh Thanh district. The project has attracted significant interest from the public and homebuyers with its favorable location, just three minutes by car from District 1 and nearby the planned urban railway line.
The Dai Quang Minh JSC, meanwhile, is developing the Sala Urban Area, a residential area of 130.36 ha in District 2’s Thu Thiem new urban area. The project includes residential and commercial areas, with luxury apartments, villas, townhouses, a shopping center, a marina, an international hospital, local and international schools, and cultural and sporting centers.
Novaland Group launched The Sun Avenue, on 46,715 sq m, in District 2 in February. According to the Group, the east of Ho Chi Minh City now has many diverse projects that have received a positive reception from customers and investors. Inheriting all the infrastructure and utilities of the Thu Thiem new urban area together with apartment prices from only VND1.68 billion ($76,995), The Sun Avenue has already attracted many purchasers.
The Sai Gon Thuong Tin Real Estate JSC (Sacomreal) recently introduced its first resort, Jamona Home Resort, in Thu Duc district in the city’s east, in July. Jamona Home Resort sits on an area of 9 ha and includes 238 villas, with two sides facing the Vinh Binh River.
Mr. Townsend, Managing Director of CBRE Vietnam, holds the development of the property market in the east of the city in high regard and believes it will continue to see spectacular change. “The launch of the urban railway will bring many benefits, in particular helping people to easily access new work and entertainment areas,” he said.
According to recent CBRE research, properties located along Metro Line No. 1, including those in Binh Thanh district, District 2, District 9, and Thu Duc district, currently sell at small to modest premiums, somewhere between 2 per cent and 5 per cent, compared to properties with similar finishings and facilities but not located along metro lines. Asking prices of high-end residential projects in District 2 have increased from an average of $1,490 per sq m in 2012 to $1,650 today, or 11 per cent, compared with just 3 per cent city-wide.
CBRE believes that, in the future, when the metro line comes into operation, the premium for land prices on sites located within a ten-minute walk of stations could be up to 10 to 20 per cent compared to sites in other areas. In terms of new launches, CBRE also found that the number of apartment units has surged in areas close to stations over the last three years. The average growth in supply in District 2 is 36 per cent, compared to just 24 per cent in District 4 and 10 per cent in District 7. It is expected that apartment supply in District 2 and District 9 will surge by 58 per cent and 200 per cent, respectively, in 2017.