In Ho Chi Minh City, District 9 and Thu Duc—two key areas of the eastern region—have surprisingly witnessed apartment prices reaching 60–90 million VND per square meter, a record-high level.
A survey by VnExpress on the housing market in District 9 and Thu Duc—areas previously dominated by mid-range and affordable apartments—revealed a stir among real estate traders as new projects emerged with asking prices ranging from 60 to over 90 million VND per square meter. These prices are unprecedented in the apartment markets of Thu Duc and District 9.
Specifically, in recent weeks, an apartment project located on Vo Van Ngan Street, Thu Duc District, has begun accepting bookings with a tentative selling price (unofficial but gauging market reaction) revealed to be around USD 4,000 per square meter, equivalent to 93 million VND per square meter. This is the first high-end apartment project in Thu Duc District with prices reaching several thousand dollars per square meter—the highest ever in this area.
Meanwhile, a component project adjacent to a 36-hectare park in an urban area located in District 9, Ho Chi Minh City, offering direct views of the Dong Nai River, is now accepting second-round bookings. Its tentative asking price is 60 million VND per square meter—also a record-high for District 9. It is known that the first round of sales for this project had prices ranging from 50–55 million VND per square meter.
Thu Duc City (blue area) includes Districts 2, 9, and Thu Duc. Graphic: Thanh Huyen.
The two ongoing booking projects setting new price benchmarks show that the triangle formed by Districts 2, 9, and Thu Duc—now merged into Thu Duc City—is entering a fierce race to upgrade the housing segment in the final quarter of 2020. The most significant shift is seen in the eastern corridor of Ho Chi Minh City. While previously only District 2 was known as the hub of luxury apartments (notably in Thao Dien, Thu Thiem, and An Phu), now high-end housing is expanding to District 9 and Thu Duc.
In an interview with VnExpress, Mr. Nguyen Loc Hanh, CEO of Ngoc Chau Asia Real Estate Investment JSC, confirmed that the asking prices for apartments in District 9 and Thu Duc—and across the eastern region of HCMC—have continued to rise throughout 2020, despite a previous period of rapid price increases. This trend is considered normal as housing prices across the entire city have consistently climbed during the complicated developments of the COVID-19 pandemic, both domestically and globally, due to supply shortages and slow project approvals.
However, Mr. Hanh explained that the main reason for this new price level is the planning and formation of Thu Duc City, which received strong public support and created a psychological boost for the housing market in East Saigon.
Real estate market in the eastern region, future Thu Duc City. Photo: Huu Khoa.
This expert noted that the Standing Committee of the National Assembly recently approved the resolution to establish Thu Duc City under HCMC with a 100% approval rate on the afternoon of December 9. The resolution took effect on January 1, 2021. Thu Duc City was formed by merging the entire natural area and population of Districts 2, 9, and Thu Duc. While luxury apartment prices in District 2 have reached very high levels—averaging USD 5,000–7,000 per square meter—apartment prices in Districts 9 and Thu Duc are still relatively lower. The price chase in Thu Duc City is considered a normal market reaction.
Mr. Hanh added that another reason behind the new price benchmark in Districts 9 and Thu Duc is the presence of major real estate developers, particularly those specializing in high-end apartments. Their market entry is expected to expand their market share and elevate the housing segment, thus setting higher price expectations.
Assessing future developments in the housing market in East HCMC, especially as the Thu Duc City planning proposal gains traction, Mr. Vo Huynh Tuan Kiet, Director of the Housing Project Marketing Department at CBRE, commented during the Q3 market review that price volatility in the area is inevitable.
However, Mr. Kiet advised investors that Thu Duc City cannot be transformed overnight or in just a few months, quarters, or years. It requires a long-term strategy spanning decades, similar to the precedent set by Phu My Hung Urban Area, which took 20 years to become what it is today.
Mr. Kiet believes that speculators and investors entering the Thu Duc real estate market is a normal occurrence, and the biggest driver for the area now is high expectation. However, in the short term, substantial growth and quality transformation will be difficult due to the time needed to develop the full housing value chain.
