Thu Duc City creates a strong momentum for Saigon East Real Estate 2021

In the last days of 2020, the urban axis to the east of Saigon attracts the attention of real estate investors when continuously receiving a lot of positive information. The first is the Resolution on the establishment of Thu Duc city in Ho Chi Minh City, which has been officially approved and will take effect from January 1, 2021. Recently, the city government also confirmed that it is expected that on December 31, the Resolution to establish Thu Duc city will be announced.

The upcoming launch of Thu Duc City on January 1 is forecasted to "breathe fire" into the Eastern real estate market in the 2021-2025 period.

As the merger of the entire natural area and population of Districts 2, 9 and Thu Duc District, Thu Duc City, again adjacent to Districts 1, 12, Binh Thanh, Dong Nai and Binh Duong Provinces, according to experts, The waves of investment in this eastern city will gradually increase in the coming time.

Talking to VnExpress, Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association, said that Thu Duc city will be a great driving force for the Ho Chi Minh City real estate market in the period of 2021-2025 and beyond to 2030. This place will become the newest and brightest hot spot, leading the housing supply in Saigon in the next decade.

Mr. Chau assessed, Thu Duc city is currently the area with the most modern urban projects in Saigon and this is an abundant supply of housing, commercial real estate and services in the near future. The mega-urban projects of hundreds of hectares in this hot spot spread throughout districts 2, 9, Thu Duc. In the next 5-10 years, this new city will launch a variety of real estate types. At the same time, this is also a hot spot to attract strong foreign investment because of its huge development potential.

HoREA President further analyzed that, in fact, since the concept of Thu Duc City, 3 districts under the East Saigon area including Districts 2, 9, Thu Duc used to be the focus of many land price increases in the 2016 period. -2018 and attract more capital for infrastructure development than the southern and western urban axes. However, with the Resolution to establish Thu Duc City, the development momentum of this urban axis will be greater and faster than the rest of the market.

Information Thu Duc City is creating quite a strong impulse for the real estate market in the East region, including Dong Nai and Binh Duong.

Information Thu Duc City is creating quite a strong impulse for the real estate market in the East region, including Dong Nai and Binh Duong.

Thu Duc city includes districts: 2, 9, Thu Duc

However, Mr. Chau said that the most worrying thing is that when the real estate market here heats up rapidly, it is likely that housing, commercial and service products are only directed to the high-end and luxury segments. , serving the rich and the high-income. This makes the poor, with modest incomes who used to live in districts 2, 9, Thu Duc drifted out of the urban development process and left behind. Therefore, the point to consider of a new city is not to let anyone fall behind, it is necessary to have a reasonable resettlement policy for the indigenous people.

Mr. Vo Huynh Tuan Kiet, Director of Marketing Department of CBRE housing projects, commented that in 2020, the East area of Ho Chi Minh City is the most exciting place, although the number of new projects for sale is not as abundant as in previous years. . This is an area that is invested in infrastructure development, planning policies, especially information about Thu Duc city, which is creating a great driving force for the market.

Mr. Kiet forecast that in the years 2020-2025, the East area will still be the key decision-making area for products, especially the apartment segment, including both high-end and luxury products. According to statistics from 2015, the East area has only about 55,000 apartments, accounting for about 34% of the total supply. By 2025, the supply of this area is forecasted to be about 200,000 units, accounting for about 44% of the total supply of the market. The factors of infrastructure and planning in the East area have great advantages.

Real Estate Thu Duc City - Ho Chi Minh City

Although acknowledging the heat of the new city, Mr. Kiet advised speculators and investors jumping into the real estate market in Thu Duc City to be cautious and have a long-term strategy instead of surfing. Because, in a short period, the requirements for growth and qualitative change are very difficult because it takes a long time to promote the housing value chain.

Dr. Su Ngoc Khuong, Senior Director of Savills Vietnam also confirmed that the establishment of Thu Duc City will create a big boost for the real estate market east of Saigon in terms of both supply and value chain in the future. However, Mr. Khuong warned that this should not only be seen as an opportunity for real estate trading and business, but should aim to see Thu Duc City as an economic center. Thus, domestic and foreign businesses and investors can see opportunities for them to invest in production, services, housing, etc.

The most modern "backbone" axes of the future Eastern city (Thu Duc)

The most modern "backbone" axes of the future Eastern city (Thu Duc)

Mr. Khuong analyzed, building a city is a story of many generations and needs to be inherited, so is Thu Duc city. On that basis, building Thu Duc city will be the story of 20 years, 30 years later and must go through many different leadership generations, demanding inheritance and continuity. Failure to do this will certainly appear difficulties for business people at different times.

This expert also gave 3 prerequisites for Thu Duc City to form an urban area as expected by the Government and HCMC authorities. The first is political will and determination. The second is resources, including two main issues: financial capacity and implementation capacity.

In addition, urban economy is also a big problem. How to make people concentrated here can live and work, not just change the name, the place will become an urban area. That city must solve the problem of jobs, social settlement as well as ensure the regional connectivity between Thu Duc and neighboring provinces.

“If the above three conditions are fulfilled, Thu Duc City will be a big boost for Ho Chi Minh City in particular and the country in general in contributing and promoting the East of Saigon to become a dynamic city and contribute to the development of the city. economy, into the government budget," said Mr. Khuong.

 

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