The real estate market in Ho Chi Minh City has witnessed a wave of investors looking for opportunities in new multi-polar cities, which have prime locations and full facilities.
The supply of apartments in the central core area is still meager, the price increases "burning hands" and there is no sign of cooling down, causing the real estate market in Ho Chi Minh City to witness a wave of investors looking for opportunities in new multipolar cities, The place has a prime location and full facilities.
Central apartments race to set the top price
In 2021, the Ho Chi Minh City apartment market witnessed a series of products offered for sale with record high prices. Right from the second quarter, the Ministry of Construction has informed that many projects in the central area, with a special location, are offered for the first time at extremely high prices such as Spirit Of Saigon (District 1) about 400 million VND/m2; Grand Marina Saigon (District 1) is about 300 million VND/m2. The most expensive apartment in Ho Chi Minh City is the One Central Saigon project (District 1) with prices up to 23,000 USD/m2, even some apartments per square meter are offered for sale for about 800 million copper.
The market record also shows that, even as Empire City of Keppel Land's primary offering reached more than 210 million VND/m2, The Metropole project developed by Son Kim Land recorded a price range ranging from 188 million VND. VND to nearly 200 million VND/m2.
Most of the above projects are concentrated in the central core area (District 1) or the area of Thu Thiem peninsula (Thu Duc City) extending towards the banks of the Saigon River.
The price of Grade A apartments in the central area continuously peaked, directly affecting the overall price increase band of the whole market. A report by Cushman & Wakefield Vietnam said that in the last quarter, the asking price of Grade A apartments (high-end segment) in Ho Chi Minh City had a sudden increase.
The market saw an average price increase of 9% QoQ and 15.3% YoY. Particularly, Grade A apartments recorded an average price of 143.6 million VND (6,266) per square meter, jumping 36% QoQ and up 23% YoY. The selling price of Grade A apartments has escalated because new products launched on the market have established new price levels. The price increase margin of high-end apartments in the last quarter was 2 times higher than that of the affordable segment.
The complicated disease situation in 2021 plus the shortage of supply will cause house prices to rise. Meanwhile, forecasts of real estate experts say that in 2022, the supply and demand of the housing market promises to improve. However, to bring down house prices is a challenge in the context that land prices are still climbing, material prices and financial, construction and sales costs have all increased.
Investors move to multi-center cities
Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), said that the downtown area is gradually expanding to Thu Thiem peninsula, in District 2 and in the future may expand to other districts with The boundary is located along the East and West banks of the Saigon River, forming new multipolar cities.
This is completely consistent with the prediction of experts when the "central multi-polar" city or "city within the city" is gradually taking shape in Ho Chi Minh City. According to planning expert Le Anh Son, in order to become a true "pole", each new center must have complete social infrastructure from schools, hospitals to parks, shopping centers, entertainment centers, etc. location… All of these amenities must be within walking distance or at least mobility. "Each center must have the ability to operate independently, where residents can safely settle down and have a job," said Mr. Son. Only then will it be enough to convince new communities to move away from the cramped core area to live in multipolar cities.
In the context that apartment prices in the old downtown area are constantly increasing, the land fund for the development of urban areas and mega-urban areas has almost reached its limit, the real estate market in Ho Chi Minh City is appearing an underground wave of displacement. out into multipolar cities to "catch up" with demand.
In addition, the supply is expected to remain meager in the next few quarters, causing the demand for apartments in multipolar cities to skyrocket. The director of many trading floors in Thu Duc City said that products with a prime location, along the riverbank or with a rare view that are usually sold within a few hours are out of stock.
"Investors often have a vision to be one step ahead, this is the right time for them to catch the wave of high demand in 2022," affirmed Mr. T.H, CEO of the exchange in Thao Dien.
Mr. Le Hoang Chau also said that, when the urban areas expand, the selling price at locations along the riverbanks can turn to a new page when comparable to the old downtown area, or even higher.
The Global City urban area in early 2022
The Global City is a high-class residential urban area in Saigon Binh An located right in front of Do Xuan Hop and Song Hanh Long Thanh - Dau Giay highway. The Global City will have 1800 units shophouse, townhouse, villas and 10,000 Grade A apartments.
Here will be built nearly 30 skyscrapers, including Grade A office buildings, luxury hotels, conference centers, international schools, Grade A medical facilities and especially the center. Grade A shopping mall with an unprecedented scale of 125,000 m2.
The project is surrounded by Rach Chiec River in the north, Muong Kinh River in the west. Even more impressive are the two artificial rivers dug along the radial of the megalopolis.
This is considered by real estate and urban experts as the last remaining large-scale diamond piece of Saigon and will become the second downtown of Ho Chi Minh City. After operating the whole urban area after 48 months of construction, this will be a new symbol of international stature.
Learn more about The Global City at https://theglobal.vn/
Tập đoàn PCM ký kết thuê 23 căn nhà phố SOHO phát triển khu phức hợp Prime Complex tại The Global City
Update on The Global City Project Progress November 2023, SOHO townhouses are nearing completion for handover