THE ATTRACTION OF REAL ESTATE IN THU THIEM AREA
Thu Thiem’s new urban area is located on the east riverbank of Saigon River, opposite District 1 and is planned to be the financial, commercial and high-end service centre of Ho Chi Minh City.
Billion-dollar infrastructure system
Surrounded by the Saigon River, Thu Thiem new urban area has a total area of 657 hectares and is opposite District 1, Ho Chi Minh City. According to the master plan, Thu Thiem will be the financial, commercial and high-end service centre. In addition, it will be one of the most vibrant economic and entertainment areas in Southeast Asia.
With the characteristics of the peninsula’s terrain, the transport and infrastructure projects of Thu Thiem Zeit River have been invested in over the past many years. Specifically, the north side of Thu Thiem peninsula has Thu Thiem Bridge and Hanoi Highway, and Thu Thiem 2 Bridge connecting to District 1. In the future, Thu Thiem 4 Bridge will connect District 7 through the Tan Thuan export-processing zone. In the Eastside, Mai Chi Tho Avenue and Dong Van Cong Street are important transport routes that help Thu Thiem to connect with Vo Chi Cong Street and Cat Lai Port. Inside the peninsula, there are other major transport routes: Crescent Avenue, Central Lakeside Road, riverside roads, and Delta Road.
Recognizing this development of Thu Thiem, Mr.Neil MacGregor – General Director of Savills Vietnam assessed that “With a series of important infrastructure projects that have been put into operation and systematically completed soon, we can expect the rapid development of Thu Thiem. I believe that Thu Thiem will contribute a lot to the budget and the overall development of the city in the coming time.”
According to the approved investment plan, in the coming time, Thu Thiem will receive a series of diverse projects such as GradeA offices (about 389,000 m2), commercial centres (about 137,800 m2), 5-star hotels, etc.
Mr. Neil MacGregor affirmed that the occupancy rate of office buildings in District 1 is high, over 95% and new supply is limited. The important is that tenants can move their target to Thu Thiem. It will become a driving force to attract leading international companies to invest in Vietnam.
New Prosperity Center of Ho Chi Minh City
According to Savills, with the first real estate projects launched in 2015, Thu Thiem market has developed more than 10,000 high-end and luxury residential products. From an investment perspective, Mr. Neil MacGregor said that early on, investors saw the potential for residential and commercial development here.
He said that Thu Thiem area has attracted the best developers in Vietnam and the Asia Pacific Region, including Keppel Land, Lotte, GS E&C, Swire, Gaw Capital, Refico and Son Kim Land. These developers will jointly develop the highest quality real estate projects for the Vietnamese market. The projects have a modern design, a well-planned development for the future resident community and the sustainable development of Thu Thiem peninsula.
According to Mr. Neil MacGregor, in December 2021, the results of the land auctions (four land lots of Thu Thiem) have sparked multiple controversies.
After all, it is undeniable that Thu Thiem is always an attractive area for investors considering entering the Vietnamese market when studies on project feasibility and expected profit. In the Thu Thiem area, with the scarcity of the land bank for project development recently, development opportunities become more attractive.
“We expect to have a modern and prosperous community on the Thu Thiem peninsula. This area will be a destination for the best Grade A office buildings and the most expensive luxury apartments in Ho Chi Minh City. In addition, Thu Thiem Zeit River will be boosted by the vibrant retail and F&B industry. In this way, it will attract the best luxury retail brands and new F&B models in Southeast Asia.”