Ho Chi Minh City’s East Zone (Thu Duc City area) is renowned for its abundant residential real estate options, offering a vibrant scene for the premium segment, from houses and villas to apartments and land plots. However, in recent years, the area has witnessed a noticeable decrease in real estate supply.
Observing the latest trends, only a handful of apartment projects in Thu Duc City are cautiously entering the market towards the year-end (including both new launches and subsequent phases of existing developments). This number is significantly lower compared to the pre-2019 period.
Some notable projects include Eaton Park (priced from VND 120 million per sq. m), The Opus One (over VND 100 million per sq. m), The Global City (USD 7,500 per sq. m), FIATO Uptown (around VND 48.6 million per sq. m, excluding VAT), and King Crown Infinity (ranging from VND 99 million to VND 125 million per sq. m). This supply dynamic indicates that luxury and ultra-luxury price points continue to dominate the East Zone’s real estate landscape.
Limited new supply has pushed primary market prices upwards. Source: CBRE
Among these, the FIATO Uptown project stands out as it is about to enter the market with reasonable pricing that caters to practical housing needs. Located within the 9.2-hectare Thang Long Home – Hung Phu residential area, which has already delivered land titles and boasts an 80% occupancy rate, the project is a rare primary supply located near the soon-to-be-completed Ring Road 2 in the East Zone. FIATO Uptown offers convenient access to major thoroughfares such as Pham Van Dong Boulevard, Vo Van Ngan Street, and National Highway 1A, providing easy connectivity to District 1, Binh Thanh District, and Tan Son Nhat International Airport. Moreover, the planned expansion of To Ngoc Van Street to a width of 30 meters will directly enhance the project’s transportation connectivity.
Aligned with Thu Duc’s vision for sustainable and modern development, the city aims to create a green and clean living environment with abundant greenery and water bodies, promoting a serene and healthy lifestyle. This project perfectly aligns with the master plan of Thu Duc City, featuring four 15-story blocks that strictly adhere to high-rise building standards while maintaining a low tower block construction density of only 25-28%.
As shared in a recent report by CBRE Vietnam, from now until the end of 2024, Ho Chi Minh City’s real estate market is expected to continue facing a scarcity of supply. The East Zone, known for its abundant apartment supply, has also encountered legal hurdles that have hindered the launch of new projects.
In the second quarter of 2024, the city witnessed a limited supply of new condominium developments, reaching only 40% of the previous year’s figure. The number of apartments sold in the first half of the year stood at 80% compared to the same period last year.
According to CBRE, due to the limited new supply, projects with new launches in Ho Chi Minh City achieved good sales performance. In the East Zone, a luxury condominium project with prices starting from VND 170 million per sq. m sold out the remaining units during its launch day. Another high-end project with prices starting from VND 130 million per sq. m (excluding VAT) also recorded sales of over 70% during its launch.
CBRE attributes the slight increase in primary market prices in Ho Chi Minh City to the scarcity of supply, with a quarterly rise of about 3% and an annual increase of 6%, surpassing VND 63 million per sq. m. The secondary market also experienced a price increase of 4% quarterly and 3% annually. These increments are attributed to positive project progress updates and the completion of surrounding infrastructure.
From now until the end of 2024, Ho Chi Minh City is expected to see the launch of over 8,000 new condominium units, a relatively modest number compared to previous years. Primary market prices for condominiums in the city are forecasted to increase by approximately 5% annually.
In terms of transportation infrastructure, there is a new development in Thu Duc City with the long-awaited Ring Road 2 project, which is set to resume construction after years of hiatus. Specifically, the 2.7-kilometer section 3 of the Ring Road 2 project, stretching from Pham Van Dong Street to Go Dua intersection, has recently resolved its BT contract issues and is expected to regain construction momentum in early 2025.
Ring Road 2 serves as an urban road connecting the east and west axes of Thu Duc City. Once completed, it will play a pivotal role in regional connectivity and act as a catalyst for the economic and social development of Thu Duc City.
Conceived 16 years ago (in 2007), Ring Road 2 spans 64 kilometers with a scale of 6 to 10 lanes. The route starts from Nguyen Van Linh Street in Binh Chanh District, crosses the Phu My Bridge in District 7, continues to Binh Thai intersection, and connects to Go Dua intersection in Thu Duc City. From there, it extends to National Highway 1 before looping back to Nguyen Van Linh Street, forming a ring road around Ho Chi Minh City. To date, only 50 kilometers of the route have been completed, while the remaining 14 kilometers remain untouched, with overgrown grass and idle machinery dotting the landscape.
Of the four unfinished sections, Section 3, stretching from Pham Van Dong Street to Go Dua intersection in Thu Duc City and measuring 2.7 kilometers, commenced construction in 2017. The other three sections are as follows: Section 1, from Phu Huu Bridge to Vo Nguyen Giap Street (3.5 kilometers), is currently in the process of land clearance; Section 2, from Vo Nguyen Giap Street to Pham Van Dong Street (2.8 kilometers), is also in the land clearance phase; and Section 4, from National Highway 1 to Nguyen Van Linh Street (5.3 kilometers), awaits further updates.
The Latest Land Price List: What You Need to Know
The Ministry of Construction has assessed that the application of the new land price framework will have a ripple effect, triggering a surge in the property and housing market. Experts predict a 15-20% increase in prices compared to pre-framework levels, a significant jump that will have far-reaching implications for the industry and consumers alike.
Why Was the Ho Chi Minh City Department of Natural Resources and Environment Authorized to Grant Pink Books for These Six Cases?
As an authorized body, we are responsible for issuing pink books to overseas Vietnamese, as well as economic organizations with foreign investment. Our team is dedicated to ensuring a smooth and efficient process for all applicants, providing a vital link between foreign nationals of Vietnamese origin and their desired property ownership in the country.
