Developers & private investors are enjoying the increasing land prices in Ho Chi Minh City.
Ho Chi Minh City is experiencing increasing land values. This buzzing metropolis situated in the south of Vietnam is known locally as Saigon and has a history rooted deep in the Vietnam war. Today, it is experiencing rapid growth thanks to people flocking to the city to live, work and play.
Residential projects are being constructed throughout the city in a response to demand. All districts of the city are experiencing rising land values which has a knock-on effect to existing property owners whose asset will in turn increase in value. Constructions costs go up and so individual units in new projects will rise in price to ensure that they are profitable for developers. This will push up the values for existing stock proving that property in Ho Chi Minh City is a valuable investment asset.
The city has already been earmarked for remarkable growth in a recent report, Emerging Trends in Real Estate Asia Pacific 2016, by PricewaterhouseCoopers and the Urban Land Institute. And the recent news of rising land prices just goes to reaffirm this with many experts in the field stating that the city’s property market is very liquid. For example, Thu Duc District increasing land values of 34 percent have pushed up average units prices from USD 636 to 720 per square metre in 2016, to between USD 810 and 1,100 today.
This is supported by the city’s rapid development. Ho Chi Minh City is currently undergoing massive infrastructure improvements which add to the city’s appeal. In additional to mass transit network lines, bridges are also in planning across the city to enable the easier movement around Ho Chi Minh. As a direct result of these planning proposals land values in District 7 have jumped up by as much as 13 percent in addition to Nha Be.
2017 is already starting out on a good footing for investors in this property hotspot. As the city develops across many sectors, developers are taking heed of the increased demand by altering their strategies to encompass housing for all budgets and tiers of societies. Opportunities are being ceased across the board including the development of tourism that has caused a rapid increase in land prices for Dong Nai, Binh Duong, and Long An.