Ho Chi Minh City’s plan to establish Thu Duc city by merging districts 2, 9 and Thu Duc district has caused property prices in the three eastern districts to increase sharply.
The prices of some existing apartments on Dong Van Cong street and Hanoi Highway in District 2 have increased by nearly 300-400 million dong ($13,000-17,000) each since early this year.
Many projects in District 9 such as Him Lam Phu An and Jamila Khang Dien have seen prices increase to 37-40 million dong per sqm from 30-35 million dong last year.
Others such as Safira Khang Dien, Saigon Gateway and Hausneo have gone up from 27-30 million dong to 35-37 million.
Prices at Vinhomes Grand Park have increased from 30-38 million dong late last year to 35-45 million now.
Metro Star in District 9 increased to 45 million dong in the second phase of sale, up 10 million dong from the first.
According to a survey conducted by the Cho Tot online real estate platform, apartment prices in the three eastern districts have increased by 18 per cent compared to April.
Most of the city’s key transportation projects like the Hanoi Highway, Saigon River Tunnel, Ho Chi Minh City-Long Thanh-Dau Giay expressway, and Metro Line No1 pass through the east.
Besides, a series of further transportation projects are planned such as the Thu Duc bridge to the Thanh Da peninsula in Binh Thanh district, Ring Roads No 2 and 3 that will link the entire eastern area and the Cat Lai Bridge connecting District 2 with Nhon Trach district in Dong Nai.
Industry experts say that as the gateway connecting the “golden” economic triangle of Binh Duong-Dong Nai-Ho Chi Minh City, the city’s eastern part has been the leading real estate location for years.
The establishment of the new city would make the market there even more attractive, they said.
Phu Dong Group director-general Ngo Quang Phuc said developing Thu Duc city into an innovation and hi-tech town associated with modernisation and digitalisation would make the east a “promising land” for young people and technocrats, and so developers would focus on smart housing there.
Dai Phuc Land director-general Nguyen Thi Thanh Huong said the establishment of the innovation city would create more jobs, increase housing demand and attract domestic and foreign investment.
She said: “Domestic and foreign investors always look for investment opportunities in both the short and long terms.
“The establishment of the eastern city envisaged as an innovation town and a new economic development hub will attract investments and create a driving force for the development of this area.
“Thus, real estate prices will also go up, with major projects that are well planned and offer the quality of life for residents having a great advantage in the market.”
VIET NAM NEWS/ASIA NEWS NETWORK