'Investor dumping'
Last weekend, the event of Masterise Homes signing the distribution agency for the first high-rise subdivision (2 buildings named Spark and Glow) with about 620 apartments in The Global City urban area caused a stir among real estate brokers. The promotional campaign, sales and even… speculation about the price and investment opportunities of this project were also scripted by hundreds of real estate sales.
Although not officially open for sale yet, the price of apartments in this project has been rumored by brokers for many months, reaching 7,000 USD/m2. (Photo: Investor)
According to the announcement of the investor, the first two towers in this urban area are expected to cost from 100 million VND/m2 - price excluding VAT. This price immediately caused a wave of discussion in the market, when the sales of many floors created noisy stories, complaining that the investor was dumping the price. Because a month before the official announcement, the selling price of this project was given by many agents as 120 million VND/m2 and there were customers who had booked, with a deposit fee of 100 million VND.
Several months ago, this apartment was rumored to cost around 7,000 USD/m2.
The Global City urban area in An Phu ward, Thu Duc city, is advertised as having a "diamond" location when it is located next to the Ho Chi Minh City - Long Thanh - Dau Giay highway, conveniently connecting to central areas and adjacent to the Rach Chiec Sports Complex.
The two high-rise towers that have just announced their prices are also advertised as the only luxury apartment project in Vietnam designed by Foster + Partners and WATG, a world-famous architectural brand.
However, with a price of 100 million VND/m2, if customers buy the smallest apartment with a 1-bedroom design of about 55m2, the cost will also be about 6 billion VND. A 2-bedroom apartment costs 7.7 - 8.5 billion VND and about 18 billion VND for a 4-bedroom apartment, while a penthouse with an area of 143.84 - 372.2m2 has not been announced.
According to the plan, the high-rise subdivision at The Global City has 25 high-rise buildings with about 8,400 apartments. (Photo: H. L)
Mr. Dinh Long, an individual investor in Binh Thanh, said that with this price, people in need of housing can buy a house with an area of about 40 - 55 square meters in many areas of Thu Duc.
As an investor, Mr. Long has been researching this project and other projects for sale in the area for many months. According to Mr. Long, the apartment has the advantage of a good location, located in a luxury urban area developed to become the new center of the East of the city, with many modern amenities, but the price of more than 100 million VND/m2 makes investors like him have to consider, and those with real housing needs will find it very difficult to reach.
The project has not yet officially opened for sale, but trading floors are accepting reservations. Brokers revealed that more than 2,000 people are participating in selling 620 apartments of this project, and the number of reservations has exceeded 1,000.
The Global City urban area has a scale of 117.4 hectares, in addition to villas and townhouses, there are also 25 high-rise buildings with about 8,400 apartments. The two towers currently open for sale are about 25 floors high. The expected completion time is around the end of 2026.
Series of projects priced over hundreds of millions in Thu Duc
Along with the apartment price of over 100 million VND/m2 in The Global City urban area, in Thu Duc City, there are many other projects with "expensive" prices that are also being opened for sale. This is an excuse for real estate sales to claim that the investor is dumping prices, the price of 100 million VND/m2 will make many other projects "breathe oxygen".
Eaton Park is under construction on Mai Chi Tho Street with phase 2 selling price from 142 million VND/m2. (Photo: Investor)
Specifically, the Eaton Park project on Mai Chi Tho Street (An Phu Ward) right at An Phu roundabout, and also adjacent to Rach Chiec sports area, is on sale with VAT-exclusive prices starting from 142 million VND/m2.
Eaton Park, invested by Malaysian investor Gamuda Land, has a total area of 3.7 hectares. With 2 main subdivisions including 6 towers of 29-39 floors, this project can supply the market with about 2,000 luxury apartments, expected to be completed and handed over in 2027.
Also in Thu Duc City, the King Crown Infinity project invested by Bamboo Capital Group on Vo Van Ngan Street, Binh Tho Ward (the center of the old Thu Duc District), is being sold at prices starting from 5,000 USD/m2, equivalent to 125 million VND. This project has a scale of only 12,652 m2 with 2 apartment blocks 30 floors high including 729 apartments. King Crown Infinity was actually open for sale for 3 years ago, from 2021 - 2023.
The Opus One, the last two towers in Vinhomes Grand Park Urban Area, are also accepting reservations at a price of about 5,000 USD/m2. Studio apartments of 30.9 - 38.9m2 here are priced from 4.5 billion VND. There is a project expected to be announced in the fourth quarter of this year with a price of about 10,000 USD/m2...
Real estate experts say the market is in a frenzy of prices. Compared to many high-end projects in District 1, District 3 or even projects in the heart of Phu My Hung urban area (District 7), prices are only from 80 - 100 million/m2. While Phu My Hung's urban infrastructure is complete, the best living environment today, the traffic infrastructure in Thu Duc is still incomplete and under investment.
Expert Dinh The Hien said that the market is still quiet, but new projects are continuously launching, causing shock with sky-high prices. However, according to his field observations in some "hot" areas, the reality is not "hot". He said that land prices now and through 2025 are not worried about fever. Maybe in 2025, liquidity will be better and prices will not be feverish.
Experts say that people with real housing needs should not rush into large projects with prices up to hundreds of millions of VND/m2. (Photo: HL)
According to him, investors need to ask themselves whether the rumored increase in real estate prices is actually in line with the market, or just a local phenomenon through some media cases. If buying a house to live in, buyers need to ask themselves why they have to buy large projects with apartment prices up to hundreds of millions of VND/m2.
While the Binh Thanh and Phu Nhuan districts have many good apartments, some secondary apartments of about 70m2 are for sale for 4.5 - 5 billion VND, averaging around 65 million VND/m2, very reasonable to live in. Those who really need housing should take their time to find a place with a reasonable price.
Besides price, buyers should also check and evaluate before deciding to spend money, such as observing the living environment, the ability to re-rent... Do not rush into new projects when hearing information about scarce real estate supply and high prices.
The market report for the first 10 months of 2024 by real estate research companies has some notable points, when the average apartment price in Hanoi has reached 60 million VND/m2, about 10% higher than the average in Ho Chi Minh City. The average new opening price in both markets has reached more than 60 million VND/m2.
Projects for sale, preparing to open for sale with overwhelming prices in Thu Duc City
Eaton Park of Gamuda Land, is accepting reservations for phase 2, price from 145 million VND/m2.
The Global by Masteri Homes is accepting reservations, price from 100 million VND/m2.
The Opus One - Vinhomes Grand Park is accepting reservations, price 5,000 USD/m2.
King Crown Infinity on Vo Van Ngan Street, Thu Duc City is open for sale, price from 125 million VND/m2.
The Opusk Residence - Metropole Thu Thiem is accepting refundable reservations, the deposit is 500 million VND/apartment. Expected price from 10,000 USD/m2.
Foresta villa project by Khang Dien in collaboration with Kepple Land on Vo Chi Cong street, Phu Huu ward, is being completed with selling price from 200 million/m2.
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