The rapid development of high-end apartment projects that make it impossible to keep up with the technical infrastructure will cause many difficulties for residents.
Land fund of Saigon is not much, however, the supply of luxury apartments is still quite high. Since the beginning of 2017, many projects have been started, thousands of apartments have been completed and offered for sale. This is considered to be a good sign of the real estate market in Ho Chi Minh City in recent years, but it still has many shortcomings such as construction quality, supply-demand difference and the difference between the speed of the project development and the level of completion of the infrastructure.
Thousands of high-end apartments are offered, but technical infrastructure is not guaranteed
In the first quarter of 2017, Saigon recorded 7,130 luxury apartments launched into the market. By the second quarter, the number had risen to 9,326, up 31% from the first quarter after just three months. Consumption of apartments in the high-end segment of the second quarter is also very impressive with 6,534 units, up 33% over Q1.
The most noteworthy is Nguyen Huu Tho street in Saigon South. It is only 2 km long, but it is home to many high-end condominium projects such as The Park Residence, Park Premier, Park Vista, Dragon Hill 2, Nine South, Sunrise Riverside and Kenton Residence and high-end residences and some universities and dormitories being under planned and awaited deployment.
The abundant supply, the high consumption also seems to be a great pleasure for the apartments for rent and sale in the high-end segment. The urban transport system is also being upgraded and urgently completed to keep pace with the progress of these housing projects. But the truth is that the pace of development of the technical infrastructure is still too slow; a project involving infrastructure upgrading takes a long time to wait for approvals and approvals. Sluggish, while the high-end apartment buildings are growing up like mushrooms to serve the needs of the market. Nguyen Huu Tho street is only 2 km long, carrying 10,000 luxury apartments with hundreds of thousands of residents in the future will often live in jams and cramped.
Not only the suffering of Saigon itself
In other countries, infrastructure is usually ahead of time, followed by new projects but in our country, almost everything is being done in the opposite direction. Not only in Saigon but also in many other big cities, the capital Hanoi is also in the context of crowded land but no roads are moving.
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We can refer to Nguyen Tuan Street in Thanh Xuan District with projects The Legend Tower, Thong Nhat Complex, Gold Seasons Complex. The road surface area is just over 4 meters but there are also two-way buses, so congestion often occurs. Recently, Hanoi has eliminated the expansion project Nguyen Tuan road, making investors disillusioned. And then, how will the hundreds of thousands of residents from the high-end apartment and mid-end apartment projects move? Perhaps the traffic jam will no longer be the “specialty” of the game anymore.
Will the infrastructure of Vietnam ever catch up with the rapid growth of housing? People are still looking forward to a positive solution by the government at all levels of government, but it seems that the future is still far away.
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