Prices increase but are still well absorbed
According to CBRE Vietnam, apartments in Ho Chi Minh City have a primary selling price increase of nearly 24%, especially, there is a project in Thu Thiem (Thu Duc) offering the final phase at a price of up to 490 million VND/m2. The absorption rate of newly opened projects will average 70% in the fourth quarter and the whole year of 2024.
In particular, some high-end to luxury projects in international urban areas, in new centers with convenient connections, recorded a sales rate of nearly 100% on the opening day alone. For houses attached to land, with high demand, absorption rate reaching nearly 80%, primary selling price increases by 13% annually.
Avision Young also said that in the fourth quarter of 2024, the Ho Chi Minh City apartment market recorded large projects with increased apartment prices, absorption rate reached 75%. The real estate market in Ho Chi Minh City recorded an average absorption rate of 65%, with Thu Duc becoming the focus with an absorption rate exceeding 80%.
Assessing Thu Duc's real estate potential, Knight Frank Vietnam also said: Thu Duc is not only a new central administrative unit but also a strategic area in the city's real estate development planning. With the rapid development of infrastructure, especially Metro Line 1, housing demand in Thu Duc is showing a significant increase.
Many roads flow to the new center of Ho Chi Minh City
The strong capital flow to Thu Duc reflects the market's confidence in the potential for price increases, long-term expectations for a new center - where modern infrastructure, systematic planning and high-quality living space converge.
In parallel with Metro Line 1, 9 urban and inter-regional railway lines are being deployed to seamlessly connect Thu Duc with the rest of Ho Chi Minh City, neighboring provinces and Long Thanh International Airport, which are considered an extremely important "leb ner" of infrastructure - turning Thu Duc into a new growth pole, while other regions have not had similar breakthroughs.
In addition, with a total investment of more than VND 3,400 billion expected to be partially opened to traffic on April 30, completed by the end of the year, An Phu intersection is one of the projects that will change the urban appearance of the old District 2 area (Thu Duc City). Along with the continuously expanded routes such as Lien Phuong, Do Xuan Hop, Vo Nguyen Giap, Mai Chi Tho Avenue, Ho Chi Minh City - Long Thanh - Dong Nai Expressway... all roads seem to be falling into the new center of Ho Chi Minh City
The story of "investing in Thu Duc real estate" is no longer new, but the cash flow shift trend is even more obvious when this area announces a plan with the vision of becoming a type I urban area and an international financial center.
Expecting to contribute about 30% of Ho Chi Minh City's GRDP by 2030, some areas of Thu Duc have natural advantages adjacent to rivers, infrastructure and methodical planning, such as the An Phu area, which possesses connectivity advantages that are said to be able to learn from Singapore in developing international standard projects, creating an attractive investment environment, attracting domestic and foreign capital flows. For example, Singapore's financial center, which includes Marina Bay and surrounding areas, has contributed significantly to the country's GDP.
Knight Frank also said that the city's planning and vision are also boosting demand for high-end real estate, including apartments, villas and modern office buildings, especially in complex projects. This demand is supported by the increase of the middle class and high income, growth in foreign investment and preferences, and the need to live in modern living spaces is growing stronger.
It is expected that by 2030, Thu Duc will welcome an immigration wave of more than 20,000 engineers, experts, and highly qualified workers, increasing the population to 1.5-1.8 million people, reaching 2.6 million people by 2040.
To meet the needs of this residential class, real estate developers are taking the lead with luxury apartments, townhouses and garden villas, in urban areas with full amenities such as hospitals, schools, shopping centers, entertainment, etc. New centers, along key traffic routes, easily available from District 1, international airports, high-tech parks and university villages... will become a "magnet" attracting investors and individual customers with the potential for liquidity and business exploitation and rental.
Expected double price increase
Mr. Chi Hieu - a long-time real estate investor said that in the next 5 years, the appearance of Thu Duc will be more modern when 9 urban railway lines and Long Thanh airport come into operation. With the current growth rate, the real estate value along major transport routes can increase by more than 50% in just a few years. I have also doubled my asset value thanks to investing in apartments along the Metro in An Phu ward early" - Mr. Hieu shared more.
Also according to a survey from CBRE Vietnam, in 2024, secondary selling prices of apartments along the Metro line also recorded an increase of 15% over the same period. In the past 8 years (since 2015), the average price of apartments around this infrastructure line has increased by 50-70%, with some projects increasing by 150%.
According to experts, currently, with a stable interest rate environment, along with a positive recovery of the economy, this period is considered the golden time to take the lead before prices increase. High-end apartments and villas and townhouses in existing urban areas with synchronous planning, international standard utilities, and solid legal documents are potential options, both ensuring long-term value and good liquidity, and providing an ideal living environment for settlement. While the real estate price of District 1 Thu Thiem has reached a record high, An Phu has attracted attention thanks to its strategic location and newly formed central urban areas.
