Is the real estate market in Saigon West getting quiet?

It is no coincidence that private investors have been hunting down real estate properties Binh Tan District, District 12, District 6, Binh Chanh, etc. Saigon West has been in real demand which makes selling or leasing properties relatively easier and the price cheaper than other areas.

“Few but high quality” new projects

According to some experts, while Saigon East and South areas intrigue investors with well invested transportation infrastructure, Saigon West is developed on the foundation of a growing population and the convenience for living and working provided by numerous business and industrial centers. Speaking of the uptrend in the West, the margin of real estate prices is stable and there are many potential opportunities for a rebound. Some experts believe that the current average price of 30 to 35 million per m2 in the West is still reasonable compared to the East or the South. The West is responding better to the actual housing demands based on average income, as well as being a "secure and stable" investment for prudent investors in the current economic turmoil caused by Covid-19.

The current supply in the West is quite scarce with few projects, unlike the period of 2017-2018. The shortage is forecasted to continue in the upcoming period. The sales volume in this area is reportedly large with some projects recording a transaction rate of 90%. The existing projects are developed by reputed names on the market including Nam Long, An Gia, Pigroup, Gamuda Land, etc. These are all attractive projects with large size, good location, proper investment, reputable investors, solid legality, commitment to construction progress even despite Covid-19.

Nam Long is offering the last apartments from phase 1 of Akari City project at an average price of VND 30 to 32 million with a 2% discount for apartments of over 97 m2, and bringing to market 14 shophouse along the 42-meter-wide commercial avenue in Q4/2020. Each unit will have an average area of ​​400 square meters and a price of about VND 20 billion. This 8-hectare project is developed by Nam Long and Japanese partners based on the idea of a new destination in Binh Tan district and in the Saigon West. The project was finished in August 2020 and will be handed over in Q3 next year.

Similarly, Westgate apartment complex in Binh Chanh, An Gia on National Highway 1A and Nguyen Van Linh Boulevard, the administrative center of Binh Chanh District, will also go to market at the average price of VND 35 million per m2. The project was introduced as a 3.1-hectare apartment complex consisting of 4 blocks, providing nearly 2000 2-bedroom and 3-bedroom apartments for various demands on the market.

In District 12, a completely new project started from the beginning of 2020, PiCity Thanh Xuan of PiGroup, is also launching its sales plan. This project consists of 3000 apartments with size from 48.8m2 and price from VND 40 million per m2.

The infrastructure lever

According to industry experts, many long-term investors are still paying attention to the Saigon West area. It is no coincidence that they go against the flow to go hunting in Binh Tan District, District 12, Binh Chanh. The West area is indeed known as a destination for real demand and soft price, which make it easier to sell or lease properties. Stockpiling now is to catch the price rise in the future. As the regional infrastructure is thriving, more and more buyers flock here to buy houses, making real estate properties here more valuable.

The West has undeniably emerged as a bright spot of Ho Chi Minh City market in recent years as real estate development happens in parallel with development of infrastructure and social facilities. Research shows that in areas such as District 6, 8, 11, Binh Tan, Tan Phu and Tan Binh which are low areas with competitive land prices and lowest apartment prices in the city, the average price for apartment recorded is USD 1.202,42 per m2. This average price has increased by 13.37% per year. At some projects, the gap between buying price and price when the project is deployed could reach VND 150 to 170 million per unit due to beautiful location and high demand.

According to the survey, the price fluctuation rate in the West Saigon area falls on the average threshold of 20 to 25% a year. If the market is good, projects on the front road could have price soaking to 35% per year. The reason for such a good price margin is the well-invested traffic infrastructure with a clear development roadmap, making investors feel secure as they prepare for the heatwave.

The advantage will become clearer when metro route no.2 Ben Thanh - Tham Luong, metro route no.6 Binh Phu connecting metro route 3A Ben Thanh and Western bus station at Phu Lam roundabout and metro route No. 2 at Ba Queo are completed. Besides the Metro, HCMC is also kicking off the construction of Ring Road 3, providing convenient traffic connection from Saigon West to local districts and Binh Duong, Dong Nai, Long An.

In particular, various infrastructure developments have been carried out in Binh Tan District The People's Committee of Ho Chi Minh City has recently assigned the Department of Transport to quickly resolve the traffic bottlenecks at the intersection of An Duong Vuong road and Vo Van Kiet; the Phan Anh - Binh Long - Huong Highway 3, on Tan Ky Tan Quy Street, Nguyen Thi Tu Street, Extended Le Van Quoi Street. These areas are logistic gateways between Ho Chi Minh City and Mekong Delta. Road No. 7 in An Lac A ward, Binh Tan district was also expanded with 8 lanes. Road No. 4, An Duong Vuong and other streets in this area have also been upgraded, making it easy to travel city center. Along with the growth of transportation infrastructure, the population in this area also increases. A series of real estate projects established with thousands of households would become the leverage for prices of real estate in this area in the future when living demand increases.

According to the census of 2019, the most populous district in the HCMC is Binh Tan District, with more than 784,000 people, followed by Binh Chanh district (more than 705,000 people), and Go Vap district (more than 676,000 people) and the lowest is Can Gio (more than 71,000 people), etc. The results also show that the population of some districts in Ho Chi Minh City is even equal to or greater than that of other provinces. Thus, the housing demand in crowded areas is very high and buyers are still seeking for projects that serve their needs.

Source: Cafef.vn