Big projects blow up property prices in eastern HCMC

SGGP
Property prices have quickly increased east of HCMC especially in District 9, where big groups are implementing their projects and some major technical social projects are about to be built and come into operation.

Boards offering property projects for sale in Nguyen Xien street, District 9 (Photo: SGGP)

Boards offering property projects for sale in Nguyen Xien street, District 9 (Photo: SGGP)

Projects around Nguyen Van Tang street, leading to Oncology Hospital, have been priced VND40-55 million a square meter. It swings from VND25-30 million a square meter in small alleys nearby.
Symbio Garden housing and health service project in front of the hospital have fully been booked by investors and customers with the price reaching VND60-80 million a square meter.
Mr. Binh, a property broker, said that Symbio Garden is the only project surrounding the hospital area, so many customers especially business people in the health field has purchased land plots there to open drugstore and private-owned clinics.
The real estate market in the eastern area has been noisier than before after Vingroup announced VinCity Grand Park and started site clearance in Nguyen Xien and Phuoc Thien streets, Long Binh and Long Thanh ward.
The 365 hectare project has been advertised to comprise apartment blocks, housing area, public works and park, Vinmec hospital, Vinschool, spa and gym club Vincham, Vinpro electronics center.
Tens of property firms operating in the stretch from Nguyen Xien to Phuoc Thien street have been offering the project for sale and recruiting staff.
After Vingroup announced the project, the number of housing land projects has quickly increased.
Mr. Trinh Van Muoi from Tan Binh district said that three years ago, he bought a land plot measuring 100 square meters in Phuoc Thien street in front of Vincity at the price of VND1 billion. Recently, he has sold it earning VND9 billion.
Some riverside projects along Nguyen Xien and Lo Lu streets have seen the price skyrocket by a few dozen percent compared to a few months ago reaching VND40 million a square meter.
Real estate expert Tran Thi Cam Tu said that land price has rocketed after the area's plan was announced. Some social and technical infrastructures are going to be built.
Of them, construction of Mien Dong Coach Station is sped up in Long Binh ward. The first phase of the project is scheduled to complete and come into operation in the first quarter next year.
Ben Thanh-Suoi Tien metro line project stretching along 20 kilometers in Districts 1, 2, 9, Binh Thanh and Thu Duc is expected to open to traffic in 2020.
Hanoi Highway expansion from eight to 16 lanes along 15.7 kilometers from Saigon 2 Bridge to new Dong Nai bridge will be done this yearend.
Dong Nai province has proposed construction of a new bridge linking District 9 up to Bien Hoa city and another bridge spanning over Tac River to connect VinCity and Nguyen Xien street.
These all have highly pushed up land price in the area. However, Ms. Tu warned of “virtual fever” with prices far exceeding the real value of properties as investors and brokers have taken advantage of the above projects to highly push up the prices.
In fact, property prices have kept increasing in Phuoc Thien, Nguyen Duy Trinh, Do Xuan Hop, Long Thuan, Nguyen Xien and Nguyen Van Tang streets since the end of 2017.
Property prices traditionally go down after a fever so she advised investors to carefully study the market to prevent sudden fluctuations from causing heavy loss.

By DO TRA GIANG – Translated by Hai Mien

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