The attraction of Thu Thiem real estate in the past 5 years

After being approved from 1996, in 2015, the first commercial real estate products of Thu Thiem urban area have just been launched to the market, but with a rapid price increase.

Marina Bay Thu Thiem project apartment

More than 5 years since the first commercial real estate project of Thu Thiem new urban area launched to the market, up to now, the peninsula has only had swamps and reeds close to the economic centre of District 1 ( CBD) has become the gathering area of ​​the most expensive apartments and villas in Ho Chi Minh City.

From 2015 up to now, more than 6,850 apartments, villas and commercial townhouses have been distributed to this market, completely changing the face of the promised land in the East of the city.

The million-dollar villas have doubled in price

Thu Thiem urban area was approved for the first planning in 1996 and changed another time in 2005, in 2015, the first commercial real estate products of this area will be the formula is introduced to the market.

Firstly, the residential area south of Mai Chi Tho Street (Sala urban area) is invested by Dai Quang Minh Joint Stock Company. Commercial townhouse complex of Nguyen Co Thach frontage, Sarimi apartments and Saroma Villas are the first projects to open for sale in mid-2015 with more than 750 products.

After Dai Quang Minh, CII - a company specializing in the construction of infrastructure - also launched the first commercial products called Thu Thiem Lake View on a total of 9 hectares of land that the company obtained from conversion. investment value in the infrastructure of a residential area in the North under a BT contract with the People's Committee of Ho Chi Minh City.

Besides BT (Building Transfer) investors, exchanging the value of infrastructure construction for the land fund, other investors such as Empire City LLC or Quoc Loc Phat Company, Sonkim Land ... is an independent investor and a pioneer to invest in the prime land plots of this urban area.

Thu Thiem region receiving much attention from domestic and foreign investors

Along with that, the market also witnessed the rapid price increase in a short time of Thu Thiem.

The price of apartments advertised in 2015 fluctuated from 2,000-3,500 USD / sqm, so far the price level has doubled to 4,600-7,500 USD / sqm. With low-rise products as commercial townhouses and villas, the price in 2015 is about VND 20-30 billion / townhouse and VND 60-150 billion / villa, now all prices have increased by 50-100%.

See more: Review the location of The River Thu Thiem

Specifically, the accumulation of 116 shophouses on Nguyen Co Thach Street of Dai Quang Minh with an opening price in mid-2015 of about 30-40 billion VND / unit has doubled to 70-80 billion VND / unit. Saroma villa area with 177 units launched at the same time is priced at 60-150 billion VND / unit, currently priced at 85-270 billion VND / unit.

Later Empire City LLC apartment development projects such as the Linden Residences subdivision launched in December 2016 with 520 units with primary prices of 71-81 VND million / m2 have increased to VND 110-120 million / m2. Or the Cove Residences opened for sale in mid-2018 for about 115-234 million VND / m2 so far, the supply has increased by 5-10%.

Thu Thiem real estate also increased in price

Mr Troy Griffths_Deputy General Director of Savills Vietnam acknowledged that over the past 5 years, in terms of supply, many projects have been developed in the Thu Thiem area with the speed of price increase. quite tall.

The first projects in the area of ​​Dai Quang Minh investor with good price growth, or recent projects of Sonkim Land, Refico ... have raised the price of the area to a new level. Many new products launched in recent times have priced up to 5,000-6,000 USD / sqm. This price is gradually becoming popular in Thu Thiem, although previously only appeared in projects in the centre.

There are 3 well-known projects own this prime location: The Metropole, The River and Empire City

See more: Thu Thiem's ​​new masterpiece: Empire City

In particular, in the past 2 years, the projects in Thu Thiem have recorded a positive and vibrant growth when the infrastructure is gradually formed as well as the profit of both domestic investors. and internationally, despite the limitations of utility and density of the community in the region, "said Mr Troy.

Recognising the reaction of the market, Mr Dang Quang Long, General Director of REIC said that projects in Thu Thiem have a huge demand, so most launches are sold out quickly. In particular, the quotas (quota) for foreigners to buy are almost all clean, and even foreigners are willing to buy long-term lease contracts.

According to Mr Dang Quang Long, Thu Thiem of the past 5 years is just the initial stage when projects appear gradually with infrastructure being completed. Hence, in the next 5-10 years when the infrastructure is fully completed, the growth rate of this urban area will be much accelerated. The next projects to be implemented here will not only be housing but also diversify into Grade A offices, commercial centres, 5-star hotels, ... already in the implementation plan.

Thu Thiem will attract high-end projects thanks to its central location, new infrastructure systems and good planning - Mr Troy Griffiths, Deputy General Director of Savills Vietnam said.

"The diversified development of commercial real estate will gradually make Thu Thiem a city in the right direction, a financial centre where work for 217,000 people and permanent residence of more than 145,000 people," Mr Long commented.

Mr Troy Griffths forecasted in the future, Thu Thiem will still be an area that attracts high-end housing projects of large domestic and foreign investors thanks to its location close to the centre, the system of new infrastructure as well as good planning of the Government.

See more: Does The Metropole Thu Thiem worthy or not?

"On the price front, we do not expect the growth to be as large as in the past five years but will slow down as long as the facilities of the area are completed in a short time," appended Mr Troy.

Thu Thiem need a vision for 50-100 year upcoming

The land fund in Thu Thiem area is increasingly scarce, tight zoning and too high land prices make it difficult for many investors to access. This has contributed to pushing real estate prices here to the top of the city.

Thu Thiem is a good and rare land bank in District 2

Mr Dang Quang Long said that the total area of ​​Ho Chi Minh City is about 206,100 hectares, but the CBD only accounts for 930 hectares and Thu Thiem is expected to be the CBD expansion with 730 hectares. Thus, the total area of ​​old and new CBD field does not account for 1% of the city area, a very limited land fund. Therefore, real estate prices in this area are always the highest and are not suitable for the majority of people.

"Project of partial adjustment of zoning planning scale of 1/2000 Thu Thiem new urban area in 2012 has been adjusted to increase the coefficient of land use for some land plots. This adjustment is necessary and It should be applied with other land plots to increase the efficiency of use, especially for functional land plots for commercial - office - hotels, it is not advisable to adjust the construction density or population quota to increase the put pressure on infrastructure ", Mr Long confirmed.

Besides, Mr Troy Griffths acknowledged that the majority of the land fund in the region was acquired by major investors such as Empire, Refico or Dai Quang Minh ... with a quite good financial situation. Therefore, because the region has a special position and functions, if the State management agency can ensure potential investors to participate, it will help the Thu Thiem area develop more synchronously instead of allocating land for developers who lack financial capacity.

"Attracting more quality investors to Thu Thiem lies entirely in the regional infrastructure system. In the past, infrastructure investment was mainly assigned to private companies for development. In the form of BT, it creates an additional financial burden for them. If the State has the capital to combine with the capital of enterprises, it can ensure the development of both infrastructure and project land fund ", Mr Troy emphasized.

Source: Zingnews, 2020. [online]. Available at: https://zingnews.vn/bat-dong-san-thu-thiem-tang-gia-gap-doi-sau-5-nam-post1142085.html