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Infrastructure lifts Ho Chi Minh City’s property market: Vietnam’s experts

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The under-construction Thu Thiem 2 Bridge connecting Ho Chi Minh City’s (HCMC) districts 1 and 2. The HCMC property market is expected to develop strongly in 2022 thanks to infrastructure projects. VNEXPRESS

Infrastructure lifts Ho Chi Minh City’s property market: Vietnam’s experts

The Ho Chi Minh City (HCMC) property market is expected to develop strongly in 2022 on the back of a number of infrastructure projects being completed or started during the period, experts have said.

Many of the projects are meant to improve connectivity or reduce congestion in the southern Vietnamese city. They include the An Phu Intersection in Thu Duc City, a municipal city under the administration of HCMC.

The junction of three major roads, the HCMC-Long Thanh-Dau Giay Highway, Mai Chi Tho Boulevard and Luong Dinh Cua Street, suffers from constant congestion, which peaks during weekends and other holidays as people travel to Dong Nai and Ba Ria-Vung Tau provinces.

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

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

The My Thuy Intersection will be finished this year, helping reduce traffic jams and accidents around Cat Lai Port and increase cargo transportation capacity.

Situated 3km from An Phu Intersection at the junction of Vo Chi Cong, Dong Van Cong and Nguyen Thi Dinh streets, work on it began in 2016 at a cost of 840 billion dong for Phase I and over 1.4 trillion dong for Phase II.

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

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

HCMC Department of Transport director Tran Quang Lam said efforts were on to complete three tasks in time – complete construction of metro route No 1 between Ben Thanh and Suoi Tien and start its commercial operation, and begin work on route No 2.

The development of infrastructure in the city is expected to drive property prices up.

COPiHOME director-general Cao Huu Phi told cafeland.vn that prices this year would rise sharply in areas where robust infrastructure development is taking place.

NovaGroup deputy director-general Nguyen Thai Phien said the Covid-19 pandemic was a big obstacle to the market’s development, but investment in infrastructure was driving it up now.

Property consultant CBRE forecast supply to recover in the next two years with nearly 22,000 new units launched in 2022 alone at subsequent phases of existing projects like Grand Marina Saigon and Grand Manhattan in District 1 and Metropole, Masteri Centre Point and The 9 Stellars in Thu Duc City.

Marketing campaigns and bookings had been launched for numerous projects set to begin in 2022, it said.

Prices in the primary market were expected to increase slowly when more projects in the suburb would be levelled to higher segments. But high prices and limited land availability in the city would push demand to neighbouring areas like Binh Duong, Dong Nai and Long An provinces, it said.

CBRE Vietnam senior director Duong Thuy Dung said: “Customers’ tastes have changed after Covid-19 with some brand-new features like technology, influencers and staycation. In addition the property market saw increasing interest from Gen Z and Millennial customers, who are and will be the main buyers in the high-end and higher segments.

“So developers need to thoroughly understand the needs of this demographic to offer the right products. The resumption of international flights, back-to-normal business operations and sustainable housing demand will help sustain prices and transaction rates of residential property,” she said.

VIET NAM NEWS/ASIA NEWS NETWORK

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