(Photo: Hung Cao/VET)
According to Thuc Nguyen, senior manager of CBRE Vietnam, the east of the city, which is home to a large land bank, is a major development hotspot of Ho Chi Minh City right now, as major infrastructure projects of the city are going eastward, as highlighted by Metro Line No.1 and Long Thanh International Airport.
“This area is anticipated to lead the market in terms of new supply in the remainder of 2019, thanks to the launch of some large-scale projects. Interest in the area remains strong, especially at projects near future metro stations,” Thuc said.
In the first quarter of 2019, 4,423 units were newly launched in Ho Chi Minh City, a decrease of 54 per cent on-year.
“This could be attributed to the government’s tightening of credit into real estate, as well as a more stringent process in granting approvals for new projects. The pipeline for 2019, however, is still strong,” Thuc said at a seminar on the residential market held in Ho Chi Minh City last weekend.
“In times of limited new supply, inventory is absorbed very quickly, as evidenced through busy activities at recent sales events,” Thuc said.
Residential property buyers have been drawn to east Ho Chi Minh City by heavy infrastructural developments. (Source: Pullman)
5,924 units were sold in the first quarter of 2019, 1.3-times as many as the new supply.
With the emergence of some luxury projects in the first quarter of 2019, average price was recorded at $1,764 per square metre in this quarter, an increase of 15 per cent on-year.
A report released by CBRE early this year also highlighted that these infrastructure improvements have significantly changed the development landscape in Ho Chi Minh City’s eastern area since 2012.
In terms of location, given the lack of land availability for residential developments and the difficulties in obtaining freehold tenure, new supply in central districts (including Districts 1 and 3) has been limited. Recent developments have tended to concentrate on neighboring areas such as Districts 2, Binh Thanh, 4 and 7. The southern area ranked first in terms of new supply in 2018 (with 53 per cent), thanks to mid-end and high-end projects in Districts 7, 8 and Binh Chanh. The eastern area accounted for 29 per cent of new supply, with the majority in District 2.
In the east of Ho Chi Minh City, a residential project named Rome is one of the most notable property projects which has been attractive to foreign buyers.
Located on the front of Mai Chi Tho and Dong Van Cong avenues, Rome has an absolute advantage in connectivity. It takes only 5-10 minutes to central areas such as District 1, Thu Thiem Urban Area, Thao Dien Residential Area, and District 2.
Besides, Rome is located along the route of Metro Line No.2, opposite Thu Thiem Station, promising to increase the value of the project with time.
