Ho Chi Minh City’s District 9: A beacon for real estate moguls
Ho Chi Minh City’s District 9: A beacon for real estate moguls
District 9 and, more generally, the east of Ho Chi Minh City are receiving major government attention and anticipated to become a beacon for the city’s real estate market.
As a tech hub, the district is home to numerous educational facilities.
It is a haven for intellectuals to live and work.
Breakthrough economic zone forms on back of three-district merger
The Ho Chi Minh City government strives to create a vibrant and thriving ‘Eastern City’ through the merger of Thu Duc, District 2, and District 9.
With the District 9 High-Tech Park, the Thu Duc campus of the Vietnam National University-Ho Chi Minh City, and the Thu Thiem Financial Center at the heart of this reform, the surrounding real estate market is sure to see a major boom alongside an improved economy and elevated living standards.
Once complete, this ‘east zone’ will comprise 21,000 hectares and cater to one million residents, accounting for ten percent of the city’s total population and 30 percent of its GDP.
“Despite the effects of COVID-19 on every sector in the country, the Ho Chi Minh City real estate market has seen positive signs of recovery since the end of Q2,” said Dang Phuong Hang, managing director of CBRE Vietnam.
“Developers are urgently planning to launch and release projects while buyers are actively looking for suitable, reasonably priced products.
“The second half of the year is already more exciting because of these variables.”
In line with CBRE’s Q2 report, supply for the second half of 2020 has gradually improved, reaching nearly 18,000 units for the whole year. However, it is a 32 percent year-on-year decrease compared to 2019.
The number of mid-end products accounts for a high percentage of this year’s releases, besides a moderate supply from the luxury and high-end segments.
In particular, the east will continue to be a hot spot, with many new projects being planned for District 2 and District 9.
Traffic gateway
Some key factors in making District 9 the focus of domestic and international investors include well-planned infrastructure, fast granting of real estate projects, and convenient access to major roadways.
Noting direct access to the Hanoi Highway, experts suggest the appeal of real estate in District 9 comes from strong planning policies for transport infrastructure.
In fact, 70 percent of Ho Chi Minh City’s total infrastructure budget, equivalent to VND245 billion (US$10.6 million), is reserved for the east.
The most prominent project is the Ho Chi Minh City – Long Thanh – Dau Giay Highway, which has a total budget of VND808 billion ($35 million).
Major roads, such as Vanh Dai 2, will be widened up to six lanes to reduce rush hour congestion.
And, when Metro No. 1, the Ben Thanh – Suoi Tien line, goes into operation, District 9 will have easier access to the central districts.
Combining the many infrastructure advantages with the general potential of the east, high-end real estate projects in District 9 will have major appeal to experts, intellectuals, engineers, doctors, and lecturers from prestigious universities in the region.
Masteri Centre Point: A new international landmark in District 9
According to the city's masterplan through 2025, District 9 is on track to become a new urban area with improved infrastructure and living standards.
Jones Lang LaSalle Vietnam noted that developers are moving away from the city center to areas with more extensive land banks and diversified ecosystems to develop green projects more aligned to buyers’ expectations.
To date, District 9 has attracted such investors as Jamila Khang Dien, Saigon Gateway, Thu Thiem Garden, Park Riverside, and more.
Many ‘giants’ consider District 9 an ideal place to build large-scale projects, including Vinhomes Grand Park – a megacity located at the heart of the district with a total scale of up to 271.8 hectares.
Located right at the center of Vinhomes Grand Park is Masteri Centre Point, a project from seasoned developer Masterise Homes.
Built in cooperation with some of the world's top consultants, Masteri Centre Point boasts ten towers and promises premier buyers a new standard of living.
In the future, as the land fund in the central districts becomes more limited and real estate prices in neighboring District 2 become more expensive, projects in District 9 will be more appealing in the eyes of those who buy-to-live as much as those who buy-to-let.
