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Thu Thiem New Urban Area: “Piece Cake” For Real Estate Giants

Thu Thiem new urban area

With Lotte Group (Korea) signing a contract for the implementation of the Smart Smart (Eco Smart City) project in Thu Thiem (District 2) with a total investment of around VND 20,100 billion as part of the ‘activation’ trillions of real estate giants to the peninsula.

More than two decades of planning, Thu Thiem urban area (District 2) gradually formed with dozens of buildings, villas and inter-regional transport. The HCM City government expects it to be the most beautiful urban area in Southeast Asia, becoming the world’s largest financial and commercial center.

To invest in construction, HCM City took more than 10 years to clear about 15,000 households, nearly VND 30,000 billion for compensation, resettlement … And last time, a series of real estate giants has poured tens of thousands of billion into Thu Thiem as the inevitable wave of opportunity.

Dai Quang Minh Real Estate Joint Stock Company’s CEO Truong Hai Tran Ba Duong as Chairman has just reported to the People’s Committee of Ho Chi Minh City planning project to build the central square and river park in the area. The Square with a total area of 20.72ha  is planned to be the largest public space in Vietnam, with a length of about 700m and a width of 80-200m.

Thu Thiem new urban area
Thu Thiem new urban area ‘s map planning

After completion, the square connected to the existing Ho Chi Minh City center via a pedestrian bridge crossing the Saigon River to Me Linh Square District 1. Previously, Dai Quang Minh has known for the urban area of Sala has a scale of over  106 ha These including villas, commercial townhouses and luxury apartments … contributing to the “change of meat” of the Thu Thiem peninsula.

Ho Chi Minh City Infrastructure Investment Joint Stock Company (CII) and foreign partner Hongkong Land jointly developed a project of high-end apartment complex on the land fund received. The project is 3.5ha in size, located at the intersection of existing Thu Thiem Bridge and Vong Cung Boulevard (one of the four main roads planned by Thu Thiem New Urban Area). The North overlooks the Saigon River and the riverside park, the south boulevard on Vong Cung Boulevard, the future cultural museum on the West and the Thu Thiem Bridge on the East.

Although not clearly defined, the VND  4 billion super project proposed by the US investor group in Ho Chi Minh City has caught public attention. Accordingly, this project was proposed by three American companies including Steelman Partners, Cantor Fitzgerald (financial, investment, financial services provider, present in more than 30 major market in the world) , Weidner Resorts (owned by Weidner Holdings, develops and manages many hotels, five-star resorts in the US, Asia …) and Johnathan Hanh Nguyen’s IPP Group.

This complex will be located in functional area No.1 of the new urban area with a scale of about 11ha with a complex of 70 floors with more than 10 items conference centers.

According to the project file, this will be a complex located in the functional area No.1 of Thu Thiem New Urban Area, scale of about 11 hectares with a complex of 70 floors, more than 10 items conference center, hotel. The office tower is expected to be a financial and securities center, attracting domestic and foreign businesses to work. The project is expected to be implemented over a period of 3 years and 2 months, with a total investment of about $ 4 billion.

On July 25, the People’s Committee of Ho Chi Minh City and Lotte Group (South Korea) signed a contract to implement the Smart Smart (Eco Smart City) project in Thu Thiem New Urban Area.

The project, with a total investment capital of around VND 20,100 billion (nearly  $ 1 billion), will be built on land with a total area of 7.45 hectares.

Of which, the area of land developed for the project is about 5,012 ha (in 6 plots of land) for the construction of general commercial and mixed-use commercial buildings with a total floor area of about 505,000 sqm, including Buildings with unique architecture which will be the highlight of Functional Area 2a.

Thu Thiem new urban area
A corner of Thu Thiem urban area is under construction

In addition to the area of intelligent complex construction, investors have also completed investment in 4 sections of roads and technical infrastructure outside the complex in combination with the infrastructure of Thu Thiem New Urban Area Land about 2,439 hectares. At the signing ceremony, HCM City People’s Committee Chairman, Mr. Nguyen Thanh Phong suggested investors try to kick off the project in the third quarter of 2017.

According to Mr.Le Hoang Chau, chairman of the HCM City Real Estate Association, Ho Chi Minh City has seen Phu My Hung as a symbol of Ho Chi Minh City’s development from a marshy area to a crowded center. Thu Thiem Urban will bring a new face and more modern.

Doctor of Economics – Mr.Le Ba Chi Nhan said that there are many projects in district 2, which will bring about a development of regional planning as well as infrastructure and people. In the future, District 2 will attract more foreign capital, become a crowded center, and create conditions for foreign investors to continue investing in Vietnam.

Thu Thiem urban area is divided into 5 main areas: “central core” area, northern residential area, residential area along Mai Chi Tho Boulevard, eastern residential area and the delta area in the South. Mai Chi Tho Avenue connects to Vo Van Kiet Boulevard through the Saigon River Tunnel (formerly known as East-West Highway), which is the center of Thu Thiem urban area in the East and West of the city. The total number of permanent residents is 145,369, the regular workforce is 217,470 people and the visitor is one million people, the office for lease is 1,719 people.

Some interesting information about the real estate market District 2 today:

  1. District 2 is the most beautiful district in three districts of East HCMC. District 2 is located adjacent to District 1 and almost people living in the East and some neighboring provinces such as Dong Nai, Binh Duong, Vung Tau .. want to move to the city center must go through District 2. According to statistics, the traffic flow through District 2 every day so much, so much that the District People’s Committee has to build more Saigon 2 bridge to reduce the load of people crossing the Saigon Bridge 1 (traffic in 1961), not to mention The city also built Thu Thiem tunnel to expand the passage of the two Saigon 1 and 2 bridges because of the number of people entering the city center at any given time.
  2. Few districts in Ho Chi Minh City have many new urban areas such as District 2. Almost all wards of District 2 such as Thu Thiem urban area, Cat Lai urban area, An Phu-An urban area Khanh, Thao Dien urban area, Thanh My Loi residential area, City Horse urban area … have at least one urban area. Compared to real estate in other districts of Ho Chi Minh City such as Binh Thanh, Phu Nhuan, Tan Binh … real estate in District 2 is quite new. This contributes to creating a modern look for District 2 compared to other districts.
  3. Many real estate professionals have admitted that District 2 is considered “the county of bridges.” In addition to Saigon 1 and 2 (connecting Binh Thanh District 2), Phu My Bridge (connecting District 7 – District 2), Rach Chiec 1 Bridge (connecting District 2 – 9th), Thu Thiem Peninsula. There are five bridges, including: Thu Thiem 1 and 2 bridge, a pedestrian bridge connecting District 1 to District 2, a bridge connecting District 4 to District 2 and a bridge connecting District 7 to District 2. Compared to underground tunnels Bridges are very important in connecting the traffic as most of the development of the area depends on bridges. As the story of Nhon Trach is only dreamed of connecting to District 2, District 9 to develop but this dream will be slow because of Sai Gon River Nhon Trach – District 2 is too large.
  4. Real estate District 2 and District 7 are often compared with each other. These are also two markets that have been competing for many years. Previously, the game belonged to District 7 by utility and community District 7 was formed. However, in recent years, District 2 real estate has made breakthroughs in both the apartment, land and real estate market. Major supermarkets and commercial centers such as Vincom Mega Mall, Metro, Parkson … are investing heavily in District 2 to meet the headwaters of Thu Thiem, causing rapid growth in the District 2 community.
  1. Thu Thiem new urban area
    A corner shot of District 2 at night

    The highlight of the urban and real estate market of District 2 in particular and the city, in general, is the Thu Thiem peninsula. The 657ha Thu Thiem Peninsula is comparable to the Pudong area of Shanghai city of China. Thu Thiem is the new financial center of Ho Chi Minh City that will compete with regional financial centers in the region.

  2. The real estate market in District 2 has the same stability as the real estate market in District 7 so many investors want to invest in this area as they can predict price increases, The volatility of the product lines they invest. District 2, in particular, has experienced a short-term fever in 2007. However, the fever was not enough to change District 2. Luxury apartment prices from 2007 to 2013 is going up because of the market “rents” this area very exciting. Hope the fever is going to take longer and bring District 2 to new heights.
Thu Thiem new urban area
Cat Lai Bridge connects District 2 with Nhon Trach, Dong Nai
  1. District 2 is slightly geologically geographically similar to District 7, especially in the Thu Thiem Peninsula. Existing investors in Thu Thiem spend a lot of money to dig reservoirs, reinforce road and apartment buildings. The largest port in the South East is now Cat Lai, so some roads in District 2 have the most container traffic in the city. Many people complain about the traffic jam on this road on Mai Chi Tho-Dong Van Cong. However, things gradually changed when the East Belt was completed. Container cars will go through District 9 instead of District 2. The Thanh My Loi residential area, Thu Thiem urban area and part of City Horse urban area will benefit from this.
  2. At present, investors are most interested in District 2 that is the product line luxury apartments, land and river villas. However, District 2 is the district that provides the market with the most office space for rent in the city. Cause, Thu Thiem next to the total population of regular residence is 145,369 people, the number of regular work is 217,470 people, of which visitors are 1 million people (maximum during the festival), Office rental The apartment type is 1,719 people.

Certainly, with many advantages existing, great potential along with the facilities that these projects are constantly creating to serve the increasing living needs of people, District 2 promises to be an attractive investment destination for the HCMC property market.

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Thu Thiem New Urban Area: “Piece Cake” For Real Estate Giants
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