Infrastructure leverage creates a push for the real estate market in the South of HCM City to surpass the East

With the recently planned sea-oriented strategy, Ho Chi Minh City is devoting a relatively large financial resource to the South to invest in connected transport infrastructure.

Recently, the People’s Committee Office of Ho Chi Minh City has just issued a document conveying the opinions of the Chairman of the City People’s Committee Nguyen Thanh Phong at the preliminary conference on the pilot implementation of the establishment of the New Urban Area Investment and Construction Management Board of the South (South Area Management Board). Accordingly, Chairman of Ho Chi Minh City People’s Committee Nguyen Thanh Phong assigned the Department of Transport to synchronously invest in the transport infrastructure system in the South of the City in accordance with the development requirements, making an important contribution to the Economic, cultural and social development of the City.

In the past 10 years, the infrastructure of the Southern area of Saigon has become more and more complete with a series of traffic works which have been invested and upgraded, creating a synchronous and connecting area. In 2018, the Southern area of Saigon received investment capital of more than 115 trillion VND to develop a series of projects such as: Underpass – overpass system at Nguyen Van Linh – Nguyen Huu Tho intersection; expanding Huynh Tan Phat street to 30m; expanding the North-South axis from Hoang Dieu to Nguyen Van Linh; expanding national highway 50 into 6 lanes and a project of national highway 50; Project of Metro Line 4 (Thanh Xuan – Nguyen Huu Tho – Hiep Phuoc Urban Area) with the investment cost of over 97,000 billion VND … In particular, the project to build Thu Thiem 4 Bridge will connect District 7 – District 2.

Đòn bẩy hạ tầng kích thị trường BĐS khu Nam TP.HCM vượt mặt khu Đông - Ảnh 1.

Thu Thiem 4 Bridge will be built to connect District 2 and District 7 to create momentum for the development of real estate in South Saigon.

Besides, in order to create a strong connection between District 7 and urban areas of Can Giuoc, Nha Be, Ho Chi Minh City also approved the policy of expanding Nguyen Huu Tho street from 4 lanes to 6-8 lanes, expanding 15m of Le Van Luong street and starting construction of Rach Dia bridge with total cost of 470 billion VND, Long Kieng bridge with 436 billion VND, Rach Doi bridge with 602 billion VND and Rach Tom bridge. Notably, Ben Luc – Ho Chi Minh City – Long Thanh expressway project is expected to be put into use in early 2020 and the ring road No. 3 connecting Long An – Ho Chi Minh City – Binh Duong – Dong Nai will create a fast connection between the Southern area of the city and the provinces in the East of Ho Chi Minh City..

From the recent development of the Southern area, Ho Chi Minh City has chosen both the South (District 7, Binh Chanh, Nha Be, and Can Gio) in the future to become a key economic region. According to the vision to 2025, the urban area in the South of Saigon will become one of four satellite urban areas of Ho Chi Minh City, helping the city to develop economy and society and reduce population pressure for the central area.

Considering the opening planning direction of future, taking the East and the South for comparison, the East is having many advantages. However, with the recently planned sea- oriented strategy, this concept is gradually changing because Ho Chi Minh City is devoting a relatively large financial resource to the South to invest in connected transport infrastructure.

According to market report for the Quarter 1 of DKRA Vietnam Company, starting from 2017, many real estate enterprises put a lot of effort into the Southern area to collect a large land fund to prepare for their development plan of new projects. Despite its great development potential, in the past time, Saigon’s South area is also facing the same situation as other areas in Saigon when there are not many projects eligible for market launch. As noted from the beginning of 2018 until now in District 7, there are only a few new projects launched by investors.

Many projects in the South recorded high transactions recently.

It is this scarcity that attracts investment cash flow and pushes the price of apartments of some projects to increase by 20-30% in just one year such as Saigon Mia, Riviera Point, The Golden Star … Some projects of prestigious investors such as Phu My Hung Midtown, Q7 Saigon Riverside Complex of Hung Thinh and Green Star of Hung Loc Phat with a total of about 5,000 newly opened apartments recorded high liquidity rates.

Or recently, two projects of Sunshine Group with large scale also created heat in the South real estate market. First is the Sunshine City project with 9 high-rise blocks located in the center of District 7. It is known that, right in the official announcement ceremony of the project earlier this year, the first 500 apartments were registered by customers.

It is known that in this third quarter, also in the South of Saigon, Sunshine Group will continue to launch Sunshine Diamond River located in District 7 – Ho Chi Minh City, right next to Saigon River. This is the first eco-urban complex with resort 4.0 style in Vietnam with 8 towers arranged in a closed compound model. It is known that in addition to unique facilities such as four-season park, water park; overhead walking road, hanging gardens; resort-standard pool … the difference of Sunshine Diamond River also lies in the application of 4.0.

Assessing the real estate potential of the South, experts said that the trend of supply explosion in this area will continue to develop strongly in the next few years, especially office leasing, partly because the South area is being invested by Ho Chi Minh City in a lot of large traffic projects connecting the whole region with the center, on the other hand, this area is benefited from the existing development of Phu My Hung urban area such as green area, out-of-town utilities, many major boulevards …