After the Thu Thiem land auction, many businesses opened to sell projects with sky-high prices in the first days of the year.
In Thu Duc City (HCMC) information Masterise Homes Company opens for sale commercial townhouses at the project The Global City has attracted many interested customers and investors. This project has a large scale of more than 117 hectares, located on Do Xuan Hop street with the road leading to Ho Chi Minh City - Long Thanh - Dau Giay highway.
The price that this investor offers for a 95 m2 commercial townhouse built on 1 ground floor, 4 floors, with a total usable floor area of 361 m2 costs up to more than 38.1 billion VND . This price does not include VAT, registration fees and taxes related to the issuance of a red book for the house. On average, each square meter of land has cost nearly 400 million VND.
Saigon Binh An is The Global City
This project was formerly known as Saigon Binh An Urban Area, with a scale of 117 hectares, approved by the People's Committee of Ho Chi Minh City to invest on a land area with a total area of 120 hectares located in P.An Phu area ( District 2) in January 1999, then approved to add the utility of An Phu golf course, bringing the total area to 137.4 hectares in 2000 by Saigon Development and Investment Joint Stock Company (SDI Corp.) ) being an investor. Some time later, the project was renamed to Saigon Golf Country Club and Residences Golf, Sports and Housing Complex, invested by Him Lam Company. However, the project was later transferred and is now in the hands of Masterise Homes.
Not only prices at projects increased sharply, in the early days of 2022, land house prices also increased sharply. If before the Lunar New Year, the price of real estate in front of the roads in An Phu - An Khanh wards such as Song Hanh, Tran Nao, Vanh Dai Tay, Nguyen Hoang, and Luong Dinh Cua streets has an average transaction price of 200 million VND / year. m2, now increases to 240-300 million VND/m2, especially there are roads like Luong Dinh Cua adjacent to Thu Thiem bridge with prices up to 350-400 million VND/m2, while in the area of Do Xuan street Hop, Lien Phuong street, next to The Global City project, the transaction price increased from 140 - 160 million VND/m2 to 150-200 million VND/m2.
Future costs to the price
The leader of a real estate company (real estate) said that there is a phenomenon of water splashing in the rain, a result of the auction of Thu Thiem land with an unusually high winning price. Although the auction was canceled, the market was almost "nailed" to that price to serve as a reference for real estate in the area and throughout the city. Many people have taken advantage of this to push up housing prices. Typically, the price of land in Thu Duc City has increased rapidly after the successful auction of 4 plots of land.
“When removing the geographical boundary of District 2, District 9, and Thu Duc District, which is already Thu Duc City, it is easier to take advantage of it for profit. In addition, real estate prices are high due to difficult compensation, land use fees, increased interest rates, unnamed costs... There are projects that have not been completed after 3 generations of city leaders. At this time, the interest and expenses of all kinds of loans are extremely high. Doing such a difficult project, so no investor would sell it cheaply," he said.
Experts say that currently the value of a real estate is not established by the formula of the selling price equal to the input price plus profit margin anymore, but is calculated based on the location and the value it can bring in the future. future. That is, the investors are selling at a price in the future, when the project is completed, not the present and ironically, even though the price is "expensive", it is still ordered by customers. This is the reason why the projects sold later are always higher than the pre-sale prices.
“Another thing is that the auction of Thu Thiem land with the winning price being too high is also the cause of the sudden and abnormal increase in real estate prices. The investor is also expecting very high profit to offset inflation, rising raw material prices, increased labor in the coming time and anticipating a long project implementation time... Not only that, at present, the areas are The land with a good location has been "exhausted", investors are afraid that they will not be able to buy it back, so they push the price high to recover capital and look for a new land fund", the experts explained.
The Real Estate market welcomes a new supply source with projects by Masterise Homes starting from mid-2023
Expanding the An Phu - Belt Road 2 Expressway section, adjacent to The Global City in Ho Chi Minh City