East area, South area, West area has strengths and weakness, which makes you have to consider when choosing where to buy a house.
The South develop gradually
In the period 2007 – 2015, the South market is considered to be the main market of Ho Chi Minh city with big projects such as Phu My Hung, HimLam Land, Nova Land, Phu Long … Most are luxury projects with prices from VND 2 billion or more and continue to grow despite the real estate market’s fluctuations.
But from 2015 up to now, the market has started to move. South area is no longer in the first place because everything has changed. It has been one of the most developed transport infrastructures in the city with a series of connection routes such as Vo Van Kiet, Nguyen Van Linh, Phu My Bridge … but when real estate projects are completed, hand over for people living on, the transport infrastructure is narrowed, the traffic jam is every day while the new transport infrastructure does not develop.
In addition, pollution from the area of Da Phuoc landfill greatly affects the living environment of the Southern area. New real estate projects are not available, while house prices here are constantly rising. The floods due to rain and tides are common, creating great pressure for residents of this area leading to the southern market down, only a few projects develop such as Phat Dat, Sacomreal , Nova Land, Phu My Hung. See also: Ho Chi Minh City Southern area facing “infrastructure battle” with the Eastern area.
The Western still sleeps
Assessing the real estate market in the Western HCMC, experts said that before 2015, the transport infrastructure here is considered the least in the city, but after that, the traffic infrastructure projects are expanded and newly build such as Cong Hoa street, Truong Chinh Street, Nguyen Van Linh street linking the South to the West and provincial road 22 connecting western districts to the districts of Binh Chanh, Hoc Mon, Cu Chi, Tay Ninh province. .
In addition, the West is the gateway between Ho Chi Minh City to the southwestern provinces, most of the internal and external infrastructure has completed, such as Vo Van Kiet Avenue connecting the West District to East District, or Kinh Duong Vuong Street has just completed the upgrading project. In terms of inter-regional connection, Ho Chi Minh City-Trung Luong expressway also significantly shortens the travel time between Ho Chi Minh City and the Mekong Delta provinces.
In particular, HCM City plans to invest in Ben Thanh – Tham Luong metro line 2, while developing a high street system to Tan Son Nhat Airport, as well as the city center. The BRT Bus Number 1 is in the process of completing procedures for construction, put into operation in 2018 as scheduled.
With these advantages, the real estate market in the West is expected to grow aggressively, but not as expected, the market has not developed to match its potentiality. In general, the market can only see strong growth in the real estate market in 2007-2009, with about 5 apartment projects. Then, the market goes down, until 2015 new projects in the Northwest such as apartment 8X plus, Phuc Yen apartment, 12 view apartment …
Next, in the South West there are projects of Hung Thinh, Nam Long, Nova Land, but overall there are only 4 projects with more than 1,000 apartments. Meanwhile, with the area being considered as the largest area, high population, the number of projects is still small compared to the demand. This shows that the West still has the bottlenecks that the real estate investment companies are not boldly invested capital here.
Mr. Nguyen Van Hau, General Director of Asian Holding Joint Stock Company, said that for the Western market, looking at the places where real estate projects located, it clearly shows that investors are targeting only golden lands, best traffic. Meanwhile, the land fund at the core of the region is not attractive.
“There are improvements in the main roads, but the overall situation is not favorable, the routing system connected to the main roads are always narrow and cramped. In addition, the residents in the West are mostly common laborers with low-income levels, so if investors invest here, they can only develop affordable housing, not much profit. Another factor is that the West has too many industrial zones and clusters, so the habitat is also affected. In addition, the West is located in the aircraft landing area of Tan Son Nhat International Airport, so it is difficult to develop high-store apartment … “, said Hau.
The East develop strongly
While the South and West are quiet, the East is continuously receiving positive information from investors with a series of projects.
From the real estate market observations, the first advantage comes from the Ben Thanh – Suoi Tien metro project. The project was started construction in 2012 and expected completion in 2019. The development of the train station will bring a new look for this area, helping real estate prices rise.
Vietnamese CBRE Company also pointed out that, viewed from the developed countries’ metro transport system, it shows that the subway projects have the most impact on the value of real estate. The development of the subway station helped bring a new look to the surrounding area, increasing in real estate prices, retail units and office projects were moved further away from the center.
According to Vietnamese CBRE, theoretically, a building located near a public transit station usually has a higher rent or selling price than the more distant buildings, as good public transport allows residents nearby easy to move to important points. This has been proven in some countries, with prices for houses in nearby public transport systems having a higher value of 6-45%.
In the future, when this metro is operational, land prices within the area within 10 minutes of the train station may increase by 10-20% compared to land prices in other areas” said CBRE.
In addition, with the contiguous advantage to provinces of Dong Nai and Binh Duong, along with the two main roads are National Highway 1A and Ho Chi Minh City-Long Thanh – Dau Giay expressway, connecting Ho Chi Minh City with other provinces, are the main advantages that the East has.
Since the 1990s, Ho Chi Minh City has planned this is the main satellite area. Ho Chi Minh City has built industrial park, export processing park system here. In addition, the largest university campus in Ho Chi Minh City is also located in the East.
In order to develop the East, a series of key infrastructures have been invested such as expanding the Hanoi Highway, followed by the expansion of National Highway 1A, then Thu Thiem Tunnel, Ho Chi Minh City-Long Thanh Highway to Vung Tau province. In addition, Pham Van Dong Street connecting East with Tan Son Nhat International Airport was also formed.
Another plan that is considered as a factor promoting the Eastern real estate market has developed strongly in the past years is that the city developed plan of industrial parks and industrial clusters in the East to easily connect to the river port system, connect National Highway 1A and the industrial triangle area, including 3 provinces of Binh Duong, Dong Nai, Ba Ria – Vung Tau. From here, industrial parks and high-tech parks are being formed such as the high-tech park of District 9, Binh Chieu Industrial Park, Linh Trung I, II (Thu Duc District) …, attracting many experts, workers here live and work, creating high demand for housing.
Mr. Le Hoang Chau, Chairman of HoREA, said that the most advantage of the real estate market in the East now projects with low prices, good policies for customers. Especially the traffic advantage connected with the metro line is in the finishing stage.
“The strong development of the East market signals a long and prosperous cycle of development. In particular, the completed metro line connecting the new East Bus Station under construction will attract many people to come here” said Chau.
You are reading the article “Ho Chi Minh City: Where To Buy The Best House And Apartment At The Present?” in the section “Real Estate News” on the website: https://realestatevietnam.com.vn/.
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