Why did Thu Thiem real estate prices double after 5 years?

Projects in Thu Thiem (Thu Duc City) over the past half decade have had price growth of 50-220%, pushing this area into one of the highest real estate prices in Ho Chi Minh City.

In recent years, the real estate market in Ho Chi Minh City has witnessed strong development in the Thu Thiem area with nearly 10.000 high-end and luxury products announced.

With the advantage of location and future development potential, real estate prices here constantly change and record new price levels. Even in the period 2019-2023, real estate in Thu Thiem leads Ho Chi Minh City in terms of price.

One of the real estate products with the sharpest increase in price is townhouses, shophouses and villas. For example, 116 shophouses on Nguyen Co Thach street have opening prices ranging from 30-VND XNX billion each apartment. To date, these shophouses are being sold on the secondary market for 150 – VND XNX billion, an increase of more than 240%. Subsequently, the prices of apartments opened for sale have also doubled.

Large potential from Thu Thiem urban area

Currently, a new center is forming in Thu Thiem at a breakneck speed, causing a “hot fever” in real estate throughout District 2. This has also become the area with the fastest growing and most expensive real estate market in Ho Chi Minh City today.

Over the past 24 years, from a desolate, quiet land, a series of transportation infrastructure projects and real estate projects have been promoted on Thu Thiem peninsula. Being “behind” compared to the bustling metropolis on the other side of the Saigon River suddenly became a special strategic advantage, helping Thu Thiem to be methodically planned from the first stages.

Learning from many urban areas that are suffering from overpopulation, traffic congestion, and destruction of aesthetics, this peninsula has been properly planned to reserve 42% of the area for ecosystems and water surfaces. 34% for residential areas, commercial centers and administrative centers. Especially the 24% portion for transportation infrastructure.

Thanks to seizing opportunities at the right time, Thu Thiem has quickly deployed a series of key infrastructure with a total investment capital of up to tens of billions of dong. Among them, projects such as Thu Thiem 1 Bridge, Thu Thiem Tunnel crossing the Saigon River, and Thu Thiem 2 Bridge have been completed and put into operation in 2007, 2011 and 2022 respectively. These transport infrastructure projects plays a very important role in thoroughly resolving inconveniences in terms of infrastructure connection with the center of District 1, creating a premise for Thu Thiem to inherit the economic dynamism of Ho Chi Minh City.

Besides, Ho Chi Minh City also approved the permitting policy Thu Thiem new urban area Continue to implement investment plans to build technical infrastructure such as completing the North – South trunk road in the new urban area, upgrading Luong Dinh Cua street, 4 main roads in Thu Thiem urban area, and the new Ong Nhieu bridge. , Central Square and Riverfront Park project in 2024 and 2025. Notably, the Thu Thiem 4 bridge project is expected to start construction in 2025, which will help shorten the distance with the southern area of ​​Ho Chi Minh City. like district 4, district 7.

The reason why Thu Thiem real estate has continuously escalated in recent times, according to experts, is because of its prime location. Along with that, apartment projects in this area belong to the high-end and luxury segments with superior standards compared to the rest of the market in the context of scarce supply, also contributing to the continuous increase in house prices. ladder.

Potential destination to attract leading real estate investors in the region

Now, Thu Thiem has become a bright spot on the real estate market “map” of many reputable real estate developers thanks to its synchronous infrastructure and available strategic location. In addition, experts also say that Thu Thiem’s ​​prime location surrounded by the Saigon River helps this place receive good prosperity and cool natural air, making it the ideal coordinates for real estate. high-end and luxury segment products.

In the next 5-10 years when the infrastructure is fully completed, the development speed of this urban area will certainly be many times faster. The next projects to be implemented here will not be simply residential but will diversify into Grade A offices (about 389.000 m2 of floor space), commercial centers (137.800 m2), 5-star hotels, etc. included in the implementation plan.

“The diverse development of commercial real estate will gradually turn Thu Thiem into an urban area in accordance with the planning direction: a financial center, a workplace for 217.000 people and a permanent residence for more than 145.000 people.”

Besides, the total area of ​​Ho Chi Minh City is about 206.100 hectares, but the old central area of ​​the city is only 930 hectares and it is expected that Thu Thiem will be the newly expanded central area with 730 hectares.

In fact, the project to locally adjust the 1/2000 scale zoning plan of Thu Thiem New Urban Area in 2012 has had an increased adjustment of land use coefficients for some land lots.

Given the attractiveness and strong potential of Thu Thiem financial center in the future, as well as the context of increasingly limited land funds, luxury apartments here have become a “magnet” to attract investors. Experienced and wealthy people want to choose an ideal place to settle. Holding a prime location and unique intrinsic values, Thu Thiem real estate is always interested and highly appreciated by investors thanks to its development potential, expected to become an investment highlight in the market. next time.