A new real estate price peak in the center of Thu Thiem is forecasted to soon form and tend to spread to neighboring areas, especially coordinates directly connected to this peninsula.
Regional market moves according to Thu Thiem peninsula
The real estate market in the city center. Thu Duc is establishing a new price level. The level of 2.4 billion VND/m2 of Thu Thiem land has pushed the land price in the Saigon riverside area to 350-400 million/m2, apartments also reached 210 million/m2. This new price peak is expected to affect almost every housing segment deployed around the Ben Nghe - Thu Thiem area, with the focus on District 2 and District 7.
Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association, said that the concept of the center of Ho Chi Minh City is gradually expanding, covering the area of District 1, Thu Thiem peninsula and the border along the East - coast. West of Saigon River. From the change in Thu Thiem real estate price level, it will stimulate the price of "golden land" areas along the Saigon River to continue to increase sharply. The story of real estate price increases in Ho Chi Minh City is considered to continue following the general trend, especially in key areas for infrastructure development and planning transformation.
Real estate prices on both sides of Ben Nghe - Thu Thiem are forecasted to continue their strong upward trend after the adjustment of land prices on Thu Thiem peninsula.
Real estate prices in Ho Chi Minh City have continuously increased in recent years because this market has to face the scarcity of land funds. Especially, the land fund in the center of Ben Nghe - Thu Thiem is even more limited, becoming the privilege of high-class and luxury projects. According to big data of Batdongsan.com.vn, in the period of 2020-2021, the price of apartments deployed around Ben Nghe - Thu Thiem area increases by an average of 30-50% compared to the starting point, the highest is about 210 million/m2. Particularly in the third quarter of 2021, prices continued to increase by 2-3% compared to the second quarter of 2021. The heat of Thu Thiem land price makes projects located along the Saigon River with direct connection to Thu Thiem urban area and the center of District 1 become the most sought-after products in Ho Chi Minh City.
According to the leader of a real estate business in Ho Chi Minh City, in terms of areas directly connected to Thu Thiem, District 4 and District 7 are the two areas that will be most affected by price changes. of this peninsula. District 7 is considered as the remaining edge of the new central triangle next to District 1 and District 2. This is currently the only area that still has a supply of high-end projects that both own a view of the Saigon River and have connections. directly with the remaining 2 districts, but the real estate price range is still below 100 million/m2. However, experts also said that in the context that the land bank along the Saigon River is exhausted, the selling price of projects in Thu Thiem and District 1 is between 120-300 million VND/m2, the price of apartments in District 7 It will be difficult to keep still and sooner or later it will increase sharply, there are not many opportunities to own Saigon River view projects at the current price of less than 100 million/m2.
Real estate in the South will be the focus of the rising wave
The wave of housing price increases spreading from Thu Thiem to neighboring markets with the focus on District 7 has been forecasted before. Especially with areas that have a direct connection with Thu Thiem peninsula via Thu Thiem 4 Bridge such as Huynh Tan Phat, Nguyen Van Linh or Tan Thuan area. These are all investment hotspots and where a sharp increase in real estate prices occurred after the land price adjustment wave of Thu Thiem. In addition to being prioritized to develop a series of "terrible" traffic projects such as underpasses, overpasses at the intersection of Nguyen Van Linh, Nguyen Huu Tho; Nguyen Khoai bridge, Nguyen Tat Thanh street... the City People's Committee. Ho Chi Minh City is speeding up the planning of 2 projects including relocating Tan Thuan port and starting construction of Thu Thiem 4 bridge to increase the heat for the South Saigon area.
The relocation of Tan Thuan port to accelerate the construction of Thu Thiem 4 bridge will change the economic and real estate face of Saigon South.
Commenting on the change that Thu Thiem 4 bridge brings to the South area, Ms. Duong Thuy Dung, Senior Director of CBRE Vietnam said, once Thu Thiem 4 bridge is completed, the distance between Thu Thiem peninsula and district 1 and the center of District 7 is only 3-5 minutes away. That also means, the real estate price difference between the two demand-side areas will shorten, the price trend between the two areas will grow in parallel. In terms of the current real estate price increase in Thu Thiem, the price of apartments at the bridgehead in District 7 is likely to increase very strongly in the coming years, difficult to keep at the current level of 70-80 million VND/m2.
In parallel with the implementation of Thu Thiem 4 bridge, Ho Chi Minh City also relocated Tan Thuan wharf to save land in this area to develop river tourism and deploy the seaport service model. This shift not only helps to relieve the area's traffic jams, hustle and bustle, but also opens a new door in urban embellishment and increases the great economic potential of Saigon South. Therefore, over the past time, high-end apartment hunting waves are pouring into this area. However, finding products is not easy because District 7 is also facing a serious shortage of supply. Besides a number of projects that have been implemented before, around the area of Thu Thiem 4 bridge, there are very few projects overlooking the Saigon River, most recently only the Asiana Riverside project of the investor Gotec Land.
According to the latest market report of DKRA Vietnam, in October and November, Ho Chi Minh City recorded 5 apartment projects with about 371 units, down 60-70% compared to previous years. The clean land fund in the central area of Ho Chi Minh City is gradually depleted, leading to a marked decrease in supply. Scarcity of new projects while demand increases sharply along with the establishment of a new price level of Thu Thiem urban area is forecasted to continue to drag down real estate prices in the South area (of which the nucleus is District 7) in particular and the whole area. Ben Nghe - Thu Thiem area in general will increase sharply in the coming time.
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