Infrastructure boosts Ho Chi Minh City real estate market: Vietnamese experts

The Thu Thiem 2 Bridge under construction connecting Districts 1 and 2 of Ho Chi Minh City (HCMC). The real estate market in HCMC is expected to grow strongly in 2022 thanks to infrastructure projects. VNEXPRESS

The Ho Chi Minh City (HCMV) real estate market is expected to grow strongly in 2022 with a number of infrastructure projects being completed or started during the period, experts said.

Many projects aim to improve connectivity or reduce congestion in the city in southern Vietnam. They include An Phu intersection in Thu Duc town, a municipal town under the administration of HCMC.

The junction of three main roads, HCMC-Long Thanh-Dau Giay Expressway, Mai Chi Tho Boulevard and Luong Dinh Cua Street, suffers from constant traffic jams, which peak on weekends and other holidays when people travel to Dong Nai and Ba Ria-Vung Tau Provinces.

At a cost of nearly four trillion dong ($175 million), it will be a three-level road comprising two tunnels.

Another project to be undertaken is the widening of National Road 50 in Binh Chanh district.

The My Thuy intersection will be completed this year, which will help reduce traffic jams and accidents around Cat Lai Port and increase cargo transportation capacity.

Located 3 km from An Phu intersection at the junction of Vo Chi Cong, Dong Van Cong and Nguyen Thi Dinh streets, work began in 2016 at a cost of 840 billion dong for phase I and more than 1.4 trillion dong for phase II.

The first phase includes the Ky Ha 3 Bridge and an overpass and an underpass on Ring Road 2.

Other projects in the city include widening of Tan Ky-Tan Quy street, upgrading of Tran Van Muoi and Thi Tran-Thoi Tam Thon streets, construction of Rach Kinh Bridge and works to prevent landslides near Giong Ong To Bridge.

HCMC Transport Department Director Tran Quang Lam said efforts are underway to complete three tasks on time: complete the construction of the No. 1 metro line between Ben Thanh and Suoi Tien and start its commercial operation. , and start work on road n°2.

Infrastructure development in the city is expected to drive up property prices.

COPiHOME Managing Director Cao Huu Phi told cafeland.vn that prices will rise sharply this year in areas where infrastructure development is underway.

NovaGroup deputy chief executive Nguyen Thai Phien said the Covid-19 pandemic was a major impediment to market development, but infrastructure investment is now driving it up.

Real estate consultant CBRE expects supply to pick up over the next two years with nearly 22,000 new units launched in 2022 alone in later phases of existing projects like Grand Marina Saigon and Grand Manhattan in District 1 and Metropole. , Masteri Center Point and The 9 Stellars in Thu Duc Ville.

Marketing campaigns and reservations have been launched for many projects that are expected to start in 2022, he said.

Prices in the primary market were expected to slowly rise as more projects in the suburbs were leveled to higher segments. But high prices and limited land availability in the city would push demand to neighboring regions like Binh Duong, Dong Nai and Long An provinces, he added.

CBRE Vietnam Senior Director Duong Thuy Dung said, “Customer tastes have changed after Covid-19 with brand new features like technology, influencers and staycation. Additionally, the real estate market has seen increasing interest from Gen Z and Millennials customers, who are and will be the main buyers in the high-end and upper segments.

“So developers need to fully understand the needs of this demographic to deliver the right products. The resumption of international flights, the return to normal business operations and the demand for sustainable housing will help maintain residential real estate prices and transaction rates,” she said.

VIET NAM NEWS/ASIA NEWS NETWORK