Real estate prices in the South of Ho Chi Minh City will increase sharply in 2020

Real estate market in the South of Ho Chi Minh City meets the new price threshold increasing sharply in 2019. Many experts believe that the real estate price in the Southern area will continue to increase in 2020 thanks to infrastructure leverage and tighter supply.

New price threshold arises from the Southern market

In early 2018, the price of high-end projects in the Southern area fluctuated around VND 35-42 million/m2. Particularly, the project on Nguyen Thi Thap street was trading on secondary market at the price of VND 34-37 million dong/m2. Another project of this investor was also offered for sale at VND 37-42 million/m2. Even luxury projects in Phu My Hung were at only VND 50-60 million/m2.

At the beginning of 2018, no one could think that the price of apartments in the Southern area could increase sharply as it was at the end of 2019, approaching the level of VND 60-90 million/m2. In early 2018, the project on Dao Tri street was offered for sale at around VND 40 million/m2. Until now, a large real estate corporation has bought this project and at the same time changed the project name as well as the whole design, adding hundreds of utilities. In November 2019, the project was launched to the market with initial prices ranging from VND 55-69 million /m2. Another project of this group is designed as an oasis in the middle of an artificial lake, possessing a beautiful location near Phu My Hung, which has just offered 700 apartments with the price ranging VND 52-62 million dong/m2. Another project locating opposite this project also is also offer at VND 60-70 million/m2.

Many reasons for real estate prices in the South to increase sharply

According to Dr. Tran Nguyen Minh Hai, there are 5 reasons for the real estate market in the southern area to increase sharply in 2019 and it is expected to continue increasing sharply in 2020.

Firstly, real estate prices in the southern area increased sharply in 2019 due to the scarcity causing by legal delay. Citing data from the Ho Chi Minh City Department of Construction, HoREA's report shows that in the first 9 months of 2019, there were only one housing project in the city being approved for investment policy, down 83%.

Secondly, the increase thanks to infrastructure resilience. Specifically, after 6 years studying of feasibility, pre-feasibility, appraisal of investment capital, until now, all preparation phases for starting the Thu Thiem 4 Bridge project have been completed. Accordingly, on September 18th, 2019, the Ho Chi Minh City People's Committee assigned the Department of Planning and Architecture to organize a competition for the Thu Thiem Bridge design plan. This super project is expected to be implemented in the first quarter of 2020.

On the other hand, after a long quiet time, the billion-dollar riverside road of Dao Tri was finally in discussion of the District 7’s People's Committee for the plan to renovate and raise the foundation for agaisnt flooding as well as to expand the Dao Tri road to 40m. When this renovation is completed, it will turn Dao Tri street into the most beautiful riverside one in Ho Chi Minh City, as a result, the price of real estate projects will increase sharply.

Finally, the projects developed in the southern area recently are super luxury ones, designed subject to rare standards in Ho Chi Minh City. Remarkably, at the end of October, 2019, TTC Land also introduced to the market the luxury apartment project - Panomax River Villa located on this billion-dollar street.

Perspective image of Panomax River Villa project with special design of 03-04 facades exposing to light.

Panomax River Villa has very limited supply with only83 units. Especially, this project possesses a classy design with 100% corner apartment and 03-04 facades exposing to light as well as catching the wind with a beautiful 360-degree panorama view.

Each apartment at Panomax River Villa owns private elevator. Residents will never encounter the rush hour of overload elevator here. Car park at this project is also guaranteed 1:1 ratio for apartment owners.

The perspective image of the project equipped with a modern Face ID system

Panomax River Villa also features a Face ID scanning system from the outside protective fence to the elevator lobby. Particularly, in the elevator hall, the artificial intelligence system will recognize faces, automatically select floors and take residents to apartments. Strangers will never be able to break into a resident's home without permission.

Perspective image of a yoga garden on the rooftop

In addition to the ultra-luxurious design, the project also owns the private standard closed system on the rooftop of each block including: Infinity pool, aqua gym, mini golf training ground, hanging chair garden for relaxation, meditation garden, yoga garden, etc.

Not only physical factors but mental ones are also paid special attention by the project owner by arranging art gardens, board games or traditional fork games playground at the riverside park.

It is known that all apartments under this project have large area and high value. Investors will not be able to find one or two-bedroom unit at the project. As a result, homogeneity of the community level will be secured.

Source: Thanh Nien