Infrastructure Drives HCM City Real Estate Market | Business

Thu Thiem Bridge 2. The real estate market in HCM City is expected to develop strongly in 2022 thanks to infrastructure projects. (Photo: vnexpress.net)

City of HCM (VNS/VNA) – the Ho Chi Minh City real estate market should develop strongly in 2022 thanks to several infrastructure projects
being completed or started during the period, experts said.

Many projects aim to improve connectivity or reduce congestion.

They include An Phu intersection in Thu Duc town.

The junction of three main roads, HCM City-Long Thanh-Dau Giay Expressway, Mai Chi Tho Boulevard and Luong Dinh Cua Street, suffers from constant congestion, which peaks during weekends and other public holidays when people travel to Dong Nai and Ba Ria- Vung Tau provinces.

Costing nearly 4 trillion VND (175 million USD), 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 three kilometers from An Phu intersection at the junction of Vo Chi Cong, Dong Van Cong and Nguyen Thi Dinh streets, works began in 2016 at a cost of VND 840 billion for phase one and over 1.4 trillion VND for phase two.

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 Muo and Thi Tran-Thoi Tam Thon streets, construction of Rach Kinh Bridge and works to prevent landslides near Giong Ong To Bridge.

Tran Quang Lam, director of the transport department of HCM city, said efforts are underway to complete three tasks on time: complete the construction of the No. 1 subway line between Ben Thanh and Suoi Tie and start its commercial exploitation, and start work on road n°2. .

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

Cao Huu Phi, managing director of COPiHOME, told cafeland.vn that prices will rise sharply this year in areas where infrastructure development is underway.

Nguyen Thai Phien, deputy general manager of NovaGroup, said the COVID-19 pandemic was a major obstacle to market development, but infrastructure investment is driving it up now.

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 city.

Marketing campaigns and reservations have been launched for many projects that are expected to begin 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.

Duong Thuy Dung, Senior Director of CBRE Vietnam, 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 activities and a sustainable demand for housing will help to support residential real estate prices and transaction rates. »/.