HCM City Real Estate: Eastern, Western Parts Of City Are Hot Spots

VietNamNet Bridge - The eastern part of the city will still be hot in 2018, while infrastructure works in the western part will attract house and apartment buyers, analysts say.

Jones Lang Lasalle (JLL), which successfully arranged a deal between Hong Kong Land and CII, says that 2017 was an eventful year with many M&A deals in HCMC, especially projects in Thu Thiem new urban area.

In December 2017, Hong Kong Land and CII signed a contract on developing Thu Thiem River Park in 2018 after a period of negotiations. 

Meanwhile, Phuc Khang Corp has announced it will develop a housing project in the Thu Thiem urban area, also in 2018. Keppel Land Vietnam is considering developing a housing project in Rach Chiec, next to Palm City.

Dat Xanh Group, a Vietnamese developer, puts high hopes on the Gem Riverside project located in southern Rach Chiec. 

Dat Xanh’s marketing director Vu Quoc Viet Nam said the project, with 12 blocks of B-class apartments and 3,000 products, will be a key project of the company. The sale will begin in the fourth quarter of 2018 after legal procedures are completed. 

Assessing the HCMC apartment market in 2018, Nguyen Hoang, R&D director of DKRA Vietnam, said the projects in the eastern part of the city are driving the market partially because B-class apartments account for a large proportion (B- and C-class apartments always sell well). Good infrastructure conditions are another reason.

It is expected that many transport projects will connect with the central area of the city, helping to ease traffic jams. These include the HCMC-Long Thanh-Dau Giay highway, Thu Thiem 2 Bridge, a bridge that links Mai Chi Tho Boulevard and Kim Cuong Island and Nguyen Thi Dinh Road.

When asked which areas in HCMC would be ‘hot spots’ in the housing market in 2018, Trang Bui from JLL said that good infrastructure conditions would turn the eastern part of the city, with projects in districts 2 and 9, into attractive destinations. 

The eastern part of the city has been driving the local market for several years. However, analysts say the projects in the western part will be surprisingly active this year.

Nguyen Hoang from DKRA Vietnam said in late 2017 the firm had to conduct a survey twice because some areas in the western part ‘suddenly’ showed supply and demand exceeding that in districts 2 and 9.

In 2016, the eastern part of the city led the market in terms of apartment supply with 35 percent of market share, while the western part was 22 percent. But in 2017, the figures were 43 percent and 24 percent, respectively.

RELATED NEWS

Real estate firms urged to list

What will the real estate market be like in 2018?

Thanh Lich