East offers profits for southern hub investors

Presently, while developers of residential developments in the west and south of Ho Chi Minh City have few customers, those in Districts 2, 9 and Thu Duc in the east are seeing successful transactions.

About 80 per cent of units in Thu Duc Housing Development Corporation’s TDH Phuoc Binh and House Vietnam’s Truong Thanh in District 9 sold out and almost units in PetroVietnam Landmark and Daewon-Thu Duc’s Cantavil-Premier in District 2 found owners. Total successful realty transactions in the east of Ho Chi Minh City from early this year to date increased about 200 per cent compared to total transactions in the final quarter of the 2010, according to Ho Chi Minh City-based Dat Ngoc realty trading floor.

However, a trading floor representative emphasised that apartment prices had significantly decreased, while landplot prices gradually increased.

For example, some of new high-end apartments, which have the quality similar to high-end apartment projects launched in 2007-2008 which ranged from VND30 million to VND40 million ($1,450-$1,932) per square metre, were now offered from VND20 million to VND25 million ($966-$1,207) per square metre. As apartments belonging to the 418 unit PetroVietnam Landmark project, considered a special high-end apartment project with prime location in the city, was put on sale at only VND19.9 million ($961) per square metre.

Hoang Anh Tuan, general director of Tac Dat Tac Vang Real Estate Company, said there were some positive market signs. According to Tuan, as other investment channels such gold and stocks were fluctuating and investors were returning to property.

Tuan said improved and upgraded infrastructure in the east of Ho Chi Minh City had attracted investors.

“Residential units’ prices in Binh Thanh, Phu Nhuan districts and South Saigon are high. Investors will choose to invest in the east of the city due to its potential of improved infrastructure and attractive residential unit prices,” said Tuan.

Thu Thiem Bridge and Vo Van Kiet street, linking District 2 to the centre of Ho Chi Minh City and the 25B road leading from District 1 to 2 are nearly completed. Thu Thiem tunnel will go into operation in September. Phu My Bridge connecting  Districts 2 and  7 together and the eastern Ring Road linking Districts 2 with 9 has been opened. The Ho Chi Minh-Long Thanh Highway is under construction and Ben Thanh-Suoi Tien Metro has just got off the ground.

Presently, District 9 has an 872 hectare high-tech zone, an 800ha international university and a 385ha culture-history park. Some 172ha in Phuoc Long ward of District 9 will be used for constructing universities and colleges.