Infrastructure lifts Ho Chi Minh City’s property market: Vietnam’s experts

The Ho Chi Minh Metropolis (HCMC) property market is predicted to develop strongly in 2022 on the again of a lot of infrastructure initiatives being accomplished or began in the course of the interval, consultants have mentioned.

Most of the initiatives are supposed to enhance connectivity or cut back congestion within the southern Vietnamese metropolis. They embrace the An Phu Intersection in Thu Duc Metropolis, a municipal metropolis underneath the administration of HCMC.

The junction of three main roads, the HCMC-Lengthy Thanh-Dau Giay Freeway, Mai Chi Tho Boulevard and Luong Dinh Cua Avenue, suffers from fixed congestion, which peaks throughout weekends and different holidays as individuals journey to Dong Nai and Ba Ria-Vung Tau provinces.

To value practically 4 trillion dong ($175 million), it is going to be a three-level highway together with two tunnels.

One other mission to be taken up is the widening of Nationwide Highway 50 in Binh Chanh district.

The My Thuy Intersection will probably be completed this 12 months, serving to cut back visitors jams and accidents round Cat Lai Port and improve cargo transportation capability.

Located 3km from An Phu Intersection on the junction of Vo Chi Cong, Dong Van Cong and Nguyen Thi Dinh streets, work on it started in 2016 at a price of 840 billion dong for Section I and over 1.4 trillion dong for Section II.

The primary part consists of the Ky Ha 3 Bridge and an overpass and underpass on Ring Highway 2.

Different initiatives within the metropolis embrace widening of Tan Ky-Tan Quy Avenue, upgrades to Tran Van Muoi Avenue and Thi Tran-Thoi Tam Thon, development of Rach Kinh Bridge, and works to forestall landslides close to Giong Ong To Bridge.

HCMC Division of Transport director Tran Quang Lam mentioned efforts have been on to finish three duties in time – full development of metro route No 1 between Ben Thanh and Suoi Tien and begin its industrial operation, and start work on route No 2.

The event of infrastructure within the metropolis is predicted to drive property costs up.

COPiHOME director-general Cao Huu Phi instructed cafeland.vn that costs this 12 months would rise sharply in areas the place sturdy infrastructure growth is going down.

NovaGroup deputy director-general Nguyen Thai Phien mentioned the Covid-19 pandemic was an enormous impediment to the market’s growth, however funding in infrastructure was driving it up now.

Property advisor CBRE forecast provide to get better within the subsequent two years with practically 22,000 new items launched in 2022 alone at subsequent phases of current initiatives like Grand Marina Saigon and Grand Manhattan in District 1 and Metropole, Masteri Centre Level and The 9 Stellars in Thu Duc Metropolis.

Advertising campaigns and bookings had been launched for quite a few initiatives set to start in 2022, it mentioned.

Costs within the main market have been anticipated to extend slowly when extra initiatives within the suburb can be levelled to larger segments. However excessive costs and restricted land availability within the metropolis would push demand to neighbouring areas like Binh Duong, Dong Nai and Lengthy An provinces, it mentioned.

CBRE Vietnam senior director Duong Thuy Dung mentioned: “Prospects’ tastes have modified after Covid-19 with some brand-new options like expertise, influencers and staycation. As well as the property market noticed growing curiosity from Gen Z and Millennial prospects, who’re and would be the predominant consumers within the high-end and better segments.

“So builders have to totally perceive the wants of this demographic to supply the appropriate merchandise. The resumption of worldwide flights, back-to-normal enterprise operations and sustainable housing demand will assist maintain costs and transaction charges of residential property,” she mentioned.

VIET NAM NEWS/ASIA NEWS NETWORK