Key road opens investing avenues
Key road opens investing avenues
The megaproject of Ring Road 3, which started construction this month, can help more clearly shape the face of a multipolar Ho Chi Minh City urban area and create new development impetus for the real estate market.
According to Ho Chi Minh City People’s Committee, Ring Road 3 has investment capital of more than VND75 trillion ($3.12 billion), promising to create a breakthrough not only in the traffic system but also open up urban development space for the whole southern key economic region.
Ring Road 3 is more than 76km long, passing through the four localities of Ho Chi Minh City, Dong Nai, Binh Duong, and Long An.
According to Le Hoang Chau, chairman of Ho Chi Minh City Real Estate Association, the development radius of Ho Chi Minh City can reach up to 200 square metres. Within this, over the years, new urban development sub-cities have been more clearly present and increasingly far away from the inner city.
“In particular, the four ring roads of the city with a total length of more than 380km plays the most important role in developing the city to the outer areas. To date, more than 90km of the first two ring roads have been completed, and 76km of Ring Road 3 are being accelerated to be fully open to traffic by 2026,” Chau said.
According to real estate consultants, Ring Road 3 plays the role of the backbone connecting industrial parks, airports, and freight stations which all are the prospect of developing urban areas.
“This is also leading to real estate projects located around the system becoming attractive for mass real estate buyers in recent years,” Chau said, adding that the ring roads both create traction for the process of urban expansion to take place faster, and at the same time, create a push to help real estate prices grow stably and sustainably.
At a conference held at the end of last year, Tran Quoc Thai, director of the Urban Development Department under the Ministry of Construction, said that the new constructions of the arterial route helped the real estate segment to increase by more than 10 per cent compared to previously.
According to a report from the Ho Chi Minh City Institute of Development Research, the new price level of the real estate market is established by the resonance of a series of factors. Among these, when the state pours capital into infrastructure, then the price of projects around can increase by 45-50 per cent.
As an area with concentrated traffic projects with the highest density, the real estate market in the east of Ho Chi Minh City has always maintained an exciting rhythm and a stable price increase over time, the report added.
According to CBRE Vietnam, the average selling price of apartments in the first quarter of 2023 increased by 2 per cent compared to the previous quarter and 10.2 per cent over the same period last year, fluctuating at over VND60 million ($2,500) per sq.m.
Thu Duc city, which Ring Road 3 passes through, accounted for 70 per cent of the apartment supply in Ho Chi Minh City in the first quarter, and the majority of the transactions mainly came from this area.
Along the Ring Road 3 passing and directly connecting to Ho Chi Minh City - Long Thanh - Dau Giay Expressway, there are many real estate projects that have been or are being implemented, including Vinhomes Grand Park, MT Eastmark City, Dong Tang Long, Palm Marina, The 9 Stallars, and more.
“Projects near Ring Road 3 possess a breakthrough advantage in connectivity with a busy and bustling future. This is a golden opportunity for visionary real estate investors,” said Nguyen Long, a private realtor in Thu Duc.
