In this article, let's explore the trends in expanding real estate in the east, along with the opportunities and challenges it brings to the Vietnamese real estate market. Through this, Elite hopes to provide some useful advice for those interested in investing in this area.
Current Position of Real Estate in East Saigon 2024
Outstanding Infrastructure Development in East Saigon
According to statistics from the period 2010-2020, Ho Chi Minh City implemented 216 transportation infrastructure projects, with a total capital of 350,000 billion VND, 70% of which are connected to the east. Completed infrastructure projects such as the Thu Thiem Tunnel, Thu Thiem Bridge, and Ba Son Bridge have facilitated transportation and connectivity with neighboring areas. Thu Thiem Bridge 3 and 4, with a total investment of over 9,000 billion VND, are scheduled to commence construction in the near future, further enhancing connectivity between District 1 and the East.
Furthermore, the completion of the Ring Road 2, Ring Road 3, and Hanoi Highway, along with projects like Cat Lai Bridge, An Phu - My Thuy interchange, play a significant role in reducing traffic congestion and creating a convenient living environment for residents. It is expected that in July 2024, Metro Line 1 Ben Thanh - Suoi Tien will be put into operation, which is considered a major milestone in Vietnam's infrastructure development.
Statistical data shows that from 2018 to date, over 50% of infrastructure projects have been completed and put into use in District 2.
Typical Real Estate Projects in the Eastern Area
Currently, there are many large urban areas that have been or are being developed in the eastern area of Ho Chi Minh City, including:
- Thu Thiem Urban Area: Planned with a total area of 657 hectares, with 216 hectares (33%) allocated for residential, commercial, service development, and 441 hectares (67%) for green spaces, water surfaces, and urban infrastructure; Thu Thiem Urban Area aims to become a financial, economic, cultural, and entertainment center of the region and internationally. Prominent projects: The River Thu Thiem (Refico), The Metropole (Son Kim Land), Empire City (Keppel Land).
The River Thu Thiem project is one of the typical projects in the East, located in the new urban area of Thu Thiem, Ho Chi Minh City.
- The Global City Urban Area: Masterise Homes' The Global City has a scale of up to 112 hectares, being one of the new urban areas in Ho Chi Minh City. The urban area offers various types of high-end apartments, villas, and shophouses, meeting the diverse needs of residents. In addition, this urban area is equipped with high-class amenities such as international hospitals, international schools, grade A commercial centers, serving not only the internal residents but also benefiting residents from neighboring areas.
- Vinhomes Grand Park Urban Area: Vinhomes Grand Park is a mixed-use project with various types of real estate from residential to commercial in District 9, developed by Vingroup. The project covers a large area of over 271 hectares and includes over 40,000 apartments, featuring projects such as Masteri Centre Point, Lumiere Boulevard, Glory Heights, and The Manhattan low-rise area. This urban area possesses diverse amenities such as international schools at all levels, international hospitals, and commercial areas.
Why East Saigon Area is an Investment Magnet?
Abundant Land Fund
Land resources are becoming increasingly scarce and restricted in inner-city districts, with the majority of supply tending to spread out to more distant areas following infrastructure development directions. Many real estate research reports have indicated that with the establishment of Thu Duc City along with abundant available land, the eastern area continues to account for 70% of the real estate supply market share in the future.
Fast Price Growth
According to CBRE's research, land and house prices in some areas of District 2 and District 9 have doubled or tripled over the past 3 years. This is a clear sign of the dynamism and strong attraction of the real estate market in this area.
The East Saigon area is one of the fastest-growing real estate value areas (Source: Internet)
Notably, from 2017 to 2018, the real estate market in this area witnessed a land price fever, with prices increasing by about 30-50% compared to the same period the year before. In some areas, land prices have even surged by 60-70% within one year. Although the market has slowed down in the past 2 years, this area continues to show a trend of price increase, albeit at a gentler pace.
Utilizing Clean Land Fund
In the near future, it is expected that the Rạch Chiếc Sports Complex, with a scale of up to 180 hectares, will be officially completed and put into operation. At the same time, the Cat Lai urban area, with an area of up to 150 hectares, is being comprehensively and closely planned with diverse functional areas.
Especially, the city government has set a target to build apartments in District 2 with a green coverage rate of up to 7m2 per person. This promises to bring a green and environmentally friendly living environment, contributing to creating a prosperous and thriving District 2 in the future.
Investor Considerations when Investing in East Area Real Estate
Thorough Market Research:
Before investing, investors need to have a good understanding of the real estate market in the eastern area. They should research ongoing projects, the development potential of the area, and the real estate supply and demand situation. Additionally, they should consider socio-economic factors such as transportation infrastructure, public utilities, and the living environment.
Collaborate with Professional Real Estate Consulting Firms:
Investors can collaborate with real estate professionals by seeking advice from reputable real estate brokers or consulting companies. These experts have in-depth knowledge of the market and can provide detailed information on potential projects and risk assessments for each investment.
Elite Real Estate is proud to be a leading high-end real estate buying and leasing agency in Vietnam with 15 years of experience
Elite Real Estate is proud to be a leading high-end real estate buying and leasing agency in Vietnam with 15 years of experience. Elite's advantages include:
- Outstanding sales achievements, especially in the high-end apartment segment.
- A network of international partners and stakeholders.
- Business operations integrated with marketing strategies, from development planning, construction, sales, to post-sales customer care services.
- Application of technology in customer management systems, sales applications, and 3D rendering for apartments.
Select a Reliable Developer:
Before deciding to invest in a specific project, investors need to conduct thorough research on the developer. They should consider the developer's reputation, experience, and previous completed projects. Projects completed with stable quality and progress will be a positive sign for choosing the developer. Additionally, investors should thoroughly review legal regulations and support commitments from the developer to ensure the safety of their investment.
Conclusion
Despite challenges, the eastern Saigon area remains a promising destination for real estate investors. With strong government infrastructure investments, coupled with the robust development of high-end projects, the eastern area will continue to be a bright spot in the real estate supply market and a destination for future investors.
Disclaimer: All data and content in this report are the property of Elite. We collect and analyze information from reliable sources. We do not guarantee the accuracy and are not responsible for the use of this information. Our article is intended to provide information and should not be used as the basis for contracts or agreements without prior consent from Elite. Copying or distributing this report without consent from Elite is strictly prohibited. Elite is not responsible for any damages caused by the use of information in this report.
