In the final stage of the year, the Southern real estate market recorded many positive signals marking a strong reversal in 2024. Besides the heating up of the general market, the Eastern market also received a lot of new information about traffic infrastructure, which had a significant impact on the development of the market in this area.
First, there is information about the Beltway 2 project from Vo Nguyen Giap Street to Pham Van Dong Street, in Thu Duc City, which has just been submitted to the Ho Chi Minh City People's Committee for a pre-feasibility report by the Department of Transport. Accordingly, this project is expected to start construction in the third quarter of 2025 and be put into operation in 2027, helping to synchronously connect with routes in the area, which will help promote infrastructure development in the East.
In addition, Ho Chi Minh City also decided to invest in upgrading and expanding To Ngoc Van Street in the old Thu Duc District to 30m. This is the central street, with the most bustling population, adjacent to Ring Road 2, connecting with Pham Van Dong and Vo Van Ngan Avenues.
Closing Ring Road 2 will have a significant impact on the real estate market.
In addition, the Ben Thanh - Suoi Tien metro project is expected to come into operation in 2024. This project is expected to bring a boost to the real estate market in general and the East of Ho Chi Minh City in particular. Since then, the real estate market, especially the type of apartment buildings in areas near traffic infrastructure projects, is showing signs of price increases.
For example, some high-end apartment projects in Thu Duc City, along the Metro line, have recorded signs of price increases even though this segment has been anchored at a fairly high price, around 100 - 200 million VND/m2, an increase of about 80-150% compared to the opening sale period. Or on the frontage of To Ngoc Van Street, many real estate listings are also being advertised at prices higher than the previous average. Even in small alleys on this route, they are being advertised for sale at around 80-100 million VND/m2.
Real estate "attached" to Metro Line 1 has increased sharply in price compared to the opening sale period.
The increase in selling prices at this stage is considered quite understandable because projects along the metro line have remained high for many years, even higher each year. In addition, with confidence in the market and the mentality of anticipating projects with development potential, many investors have begun to look for a suitable investment product in the area along Ring Road 2, along the metro line or other transportation projects in the Eastern region.
In addition, the selling price also shows signs of "heating up" because the limited supply in this area has not improved in the past time. The market report for the third quarter of 2023 published by Savills also shows that the housing supply in Ho Chi Minh City in general and Thu Duc City in particular is still quite modest, mostly new supply from previous old projects.
The supply issue will improve in the 2024-206 period, when many projects in this area will be launched. According to some forecasts, in this period, the Eastern market will account for more than 50% of the supply with about 45,000 apartments coming to the market.
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