Property prices skyrocket in eastern HCMC after record bids for Thu Thiem land

The Global City, an under-construction premium apartment project in the former District 2 (now Thu Duc City), has estimated prices of VND350-400 million (US$15,330-17,520) per square meter.

The price tag is 15-20 percent higher than in the same segment in other areas, the result of a surge in prices driven by the historical bids for land plots in neighboring new Thu Thiem urban area.

The bids have had a ripple effect on other areas in Thu Duc City. In the former District 9, a riverfront villa project sells 350-1,000 sq.m units at starting prices of VND300 billion, the highest ever in the district.

Townhouse and riverfront villa prices in the former Thu Duc District are also at an unprecedented VND350 million per square meter in March.

A real estate agent said prices have increased by 25 percent from a year ago and 10 percent from the last quarter.

Chau, an experienced independent broker in eastern HCMC, said prices of new projects in the area are constantly rising to new highs.

Prices have soared 20-30 percent since the end of 2021 in the primary market and 25-30 percent in the secondary market, he said.

In the Thu Thiem Peninsula, formerly a part of District 2, last December a property developer bid to buy a land plot there for a record VND2.43 billion per square meter. The company later pulled out of the bid, forfeiting its deposit, but the effect on property prices remains.

Speaking to VnExpress, Huynh Phuoc Nghia, senior consultant at advisory firm GIBC, said the Thu Thiem land auction has had the biggest influence on land prices in nearby areas.

"Investors need to be cautious in a market like this. If you unfortunately buy an asset at a manipulated peak, it will be extremely difficult to liquidate it and you have to accept burying your investment for a long time".

Thu Duc City was formed in 2020 by merging the three eastern districts of 2, 9 and Thu Duc.