Infrastructure boosts HCM City property market

The Thủ Thiêm 2 Bridge. The HCM City property market is expected to develop strongly in 2022 thanks to infrastructure projects. — Photo vnexpress.net

The HCM City property market is expected to develop strongly in 2022 on the back of a number of infrastructure projects being completed or started during the period, experts said.

Many of the projects are meant to improve connectivity or reduce congestion.

They include the An Phú Intersection in Thủ Đức City.

The junction of three major roads, the HCM City-Long Thành-Dầu Giây Highway, Mai Chí Thọ Boulevard and Lương Định Của Street, suffers from constant congestion, which peaks during weekends and other holidays as people travel to Đồng Nai and Bà Rịa-Vũng Tàu provinces.

To cost nearly VNĐ4 trillion (US$175 million), it will be a three-level road including two tunnels.

Another project to be taken up is the widening of National Road 50 in Bình Chánh District.

The Mỹ Thuỷ Intersection will be finished this year, helping reduce traffic jams and accidents around Cát Lái Port and increase cargo transportation capacity.

Situated three kilometres from An Phú Intersection at the junction of Võ Chí Công, Đồng Văn Cống and Nguyễn Thị Định streets, work on it began in 2016 at a cost of VNĐ840 billion for phase one and over VNĐ1.4 trillion for phase two.

The first phase includes the Kỳ Hà 3 Bridge and an overpass and underpass on Ring Road 2.

Other projects in the city include widening of Tân Kỳ-Tần Quý Street, upgrades to Trần Văn Mười Street and Thị Trấn-Thới Tam Thôn, construction of Rạch Kinh Bridge, and works to prevent landslides near Giồng Ông Tố Bridge.

Trần Quang Lâm, director of the HCM City Department of Transport, said efforts were on to complete three tasks in time: complete construction of metro route No 1 between Bến Thành and Suối Tiên and start its commercial operation, and begin work on route No 2.

The development of infrastructure in the city is expected to drive property prices up.

Cao Hữu Phi, general director of COPiHOME, told cafeland.vn that prices this year would rise sharply in areas where robust infrastructure development is taking place.

Nguyễn Thái Phiên, deputy general director of NovaGroup, said the COVID-19 pandemic was a big obstacle to the market’s development, but investment in infrastructure was driving it up now.

Property consultant CBRE forecast supply to recover in the next two years with nearly 22,000 new units launched in 2022 alone at subsequent phases of existing projects like Grand Marina Saigon and Grand Manhattan in District 1 and Metropole, Masteri Centre Point and The 9 Stellars in Thủ Đức City.

Marketing campaigns and bookings had been launched for numerous projects set to begin in 2022, it said.

Prices in the primary market were expected to increase slowly when more projects in the suburb would be levelled to higher segments. But high prices and limited land availability in the city would push demand to neighbouring areas like Bình Dương, Đồng Nai and Long An provinces, it said.

Dương Thuỳ Dung, senior director, CBRE Vietnam, said: “Customers’ tastes have changed after Covid-19 with some brand-new features like technology, influencers and staycation. In addition the property market saw increasing interest from Gen Z and Millennial customers, who are and will be the main buyers in the high-end and higher segments.

“So developers need to thoroughly understand the needs of this demographic to offer the right products. The resumption of international flights, back-to-normal business operations and sustainable housing demand will help sustain prices and transaction rates of residential property.” — VNS