Why the Eastern area has become the new development and residential direction of Ho Chi Minh City over the past decade

It is no coincidence that the Eastern area has always been a hot spot on the real estate map of Ho Chi Minh City, continuously leading all the most important indicators such as supply, price increase rate, liquidity... over the past decade.

With its important gateway position to the Southern economic region and outstanding infrastructure and utilities, this place will continue to welcome a strong wave of migration to settle down and make a living.

The "big brother" of the real estate market

Ho Chi Minh City is divided into 5 development areas, including South - West - Northwest - East and the center. Since 2014, the East has grown strongly like the "big brother" and has maintained this position for the past 10 years with many impressive indicators.

Reports from market research units show that the number of products launched has been steadily decreasing each year, but the East still leads the city in terms of new supply. According to forecasts from Cushman & Wakefield Vietnam, the supply of apartments and townhouses in Ho Chi Minh City in the period of 2024 - 2026 will also be mainly located in the East. After only a decade, from a sparsely populated state, the East has now "transformed" into the most bustling urban strip with real estate values increasing day by day.

The constant growth in housing prices in the East brings sustainable profits to investors.

Not only dominating in supply, real estate in the East is far surpassing the rest in terms of price. According to statistics from Nha Tot, the average price of apartments in Thu Duc City reached 65.51 million/m2 in the fourth quarter of 2023. Along with that, the highest price increase rate in the market, an average of 2.5 - 3 times, has helped many investors earn large profits over the past decade. At the same time, liquidity in the secondary market in the East is also extremely vibrant when demand is abundant.

Savills' 2023 report said that the apartment absorption rate in Ho Chi Minh City is up to 84%. In the East, although the price level continuously reaches new peaks, the absorption rate is still extremely impressive. Typically, Vinhomes Grand Park regularly records unprecedented sales records such as selling 10,000 The Rainbow apartments in just 17 days, "selling out" 2,400 The Origami apartments in 3 days...

Even in 2022 - 2023, when the market showed signs of slowing down, Vinhomes Grand Park was still the "ice-breaking" project with 2,000 apartments sold in 34 hours in the Glory Heights subdivision... All of the above indicators are clear evidence that the East is the new and dominant residential direction on the housing supply and demand map of Ho Chi Minh City.

Currently, Thu Duc City has a population of 1.2 million, expected to increase to 1.5 million by 2030, equivalent to at least 50,000 more permanent residents each year, not to mention students and workers. With this growth rate, Thu Duc alone is estimated to need at least 11,000 houses each year. However, according to data from the Ministry of Construction, in 2023, Ho Chi Minh City will only have 18,000 apartments for sale, not to mention the continuous decrease in supply due to limited land funds. This contrasting picture shows that apartment prices in the East will only increase, not decrease.

Firmly position the main development direction of the city

Ho Chi Minh City is developing according to a multi-polar, multi-center model. In which, Thu Duc is identified as the leading nucleus contributing 30% of the city's GRDP, equivalent to 7% of the country's GDP, showing the macro role and enormous resilience of the region.

This also explains why for many years, the Eastern region's infrastructure has always ranked number 1 in public investment disbursement at a fast and urgent speed and is the starting point of a series of key national infrastructure projects.

Metro Line 1 is about to reach its finish line, Ring Road 3 is being accelerated, etc. Projects that are about to be invested include Ring Road 2, An Phu intersection, Cat Lai bridge, My Thuy roundabout, expansion of Nguyen Thi Dinh and Do Xuan Hop streets, etc. Completed projects include Long Dai bridge, Saigon 2 bridge, Pham Van Dong street, Vo Van Kiet street, Saigon tunnel, Thu Thiem 1-2 bridge, Ho Chi Minh City - Long Thanh - Dau Giay expressway, new Eastern bus station, etc.

The infrastructure transformation over the past years has promoted a wave of migration, attracting experts and foreigners to live in Vinhomes Grand Park.

Mr. Nguyen Hoang - Director of R&D Department of DKRA Vietnam assessed that the establishment of the Eastern city has clearly impacted the planning and investment in traffic and social infrastructure. From there, promoting the development of this area to a new level, far surpassing the general level of the whole city.

Sharing the same view, Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association said: "With the strategy of building a creative urban area, the Eastern city will attract a large number of residents who are scientists and foreign consultants with very high incomes. Therefore, to meet the needs of this class, high-end real estate, including houses, apartments, commercial centers and offices, will certainly be prioritized."

Therefore, it is not surprising that many high-end urban projects in the past few years have welcomed a record wave of immigration, typically Vinhomes Grand Park, which currently has more than 60,000 residents, including a large number of intellectuals, experts, and foreigners, and promises to increase strongly in the future.

Vinhomes Grand Park possesses enormous appeal from super-convenient pieces, such as the 36-hectare Grand Park, the largest in Southeast Asia, Vinmec International General Hospital, 24 schools - including the largest Vinschool system in Ho Chi Minh City, VinBus electric bus system... making this place a "shopping - trading - education - healthcare - festivals - entertainment" hub of the whole Ho Chi Minh City. In particular, the "super" utility duo of Vincom Mega Mall and the first VinWonders entertainment universe in Ho Chi Minh City officially opened this summer will increase the attractiveness of the "city of a million destinations" many times over.

All of these different values are the levers that help Vinhomes Grand Park in particular and the Eastern region in general to increasingly improve in terms of position, quality of life and investment value.

Source