Thu Thiem real estate prices surpass Phu My Hung.

In the 2010s, Phu My Hung quickly created a real estate "boom" with its luxury apartments and became a symbol of the wealthy southern area of Ho Chi Minh City. At the same time, Thu Thiem was still just a swampy area with reeds, ponds, and ferry crossings connecting the old District 2 with the central District 1, once considered "the land across the river".

However, in just about a decade, especially from 2015 to the present, Thu Thiem has undergone a dramatic transformation to become one of Ho Chi Minh City's new urban icons. From a virtually undeveloped area, it has gradually risen to become the focal point of the luxury real estate market, even being considered to surpass Phu My Hung in terms of status and price level in the high-end segment.

Real estate prices in Thu Thiem have been rising for a decade.

When the Thu Thiem New Urban Area master plan was first approved in 1996, many still viewed it as a separate area from the existing urban core. By 2005, the plan was revised, and a series of infrastructure projects such as the Saigon River tunnel, Mai Chi Tho Boulevard, and Thu Thiem Bridge 1 successively appeared, beginning to change perceptions of this peninsula.

However, it wasn't until around 2015 that this urban area truly began to take shape with the first projects laying the foundation for a modern urban center.

The first phases of the Sala Urban Area were the project that kicked off the wave of development in Thu Thiem. This was followed by Empire City, which launched in 2015, and Metropole, which appeared in 2018, attracting a host of major real estate developers.

The first phases of the Sala Urban Area marked the beginning of a wave of real estate development in Thu Thiem. Photo: Quynh Danh.

Speaking with Tri Thuc - Znews, Ms. Le Thi Huyen Trang, General Director of JLL Vietnam, commented that the period from 2015 to 2018 is considered the shaping phase of the real estate market in Thu Thiem.

Pioneering projects like Sala by Dai Quang Minh recorded apartment prices of around 56-70 million VND/m2. At that time, this price was considered very high for the eastern part of Ho Chi Minh City, but the market quickly absorbed it thanks to expectations for the future of this peninsula.

Not only apartments, but the low-rise segment is also quickly establishing a new price level. According to Ms. Trang, many townhouses and villas on main roads in Sala once attracted attention when they reached approximately 200 million VND/m2 of land - a price rarely seen in the old District 2 a decade ago.

The period from 2019 to 2022 marked a more significant transformation as numerous developers launched new products and positioned themselves in the luxury segment, bringing Thu Thiem into the high-end real estate race.

While apartment prices in Thu Thiem were initially only a few tens of millions of VND/m2, by 2019-2022, many riverside projects had recorded primary market prices reaching 160-170 million VND/m2.
Ms. Le Thi Huyen Trang, General Director of JLL Vietnam

The presence of big names like SonKim Land, GS E&C, and Keppel Land has helped reposition the entire market. Projects in Thu Thiem focusing on international standards have driven prices up 2-3 times compared to the initial phase.

"While apartment prices were only a few tens of millions of VND/m2 in the initial phase, by the period of 2019-2022, many riverside projects had recorded primary market prices reaching 160-170 million VND/m2," Ms. Trang cited statistics from JLL.

After the Ba Son Bridge opened to traffic in 2022, real estate prices in Thu Thiem continued to rise to new heights. The bridge is not only a transportation project but also a "psychological boost," helping Thu Thiem connect directly with the existing central business district of Ho Chi Minh City.

The Ba Son Bridge, which opened to traffic in 2022, was not only a transportation project but also became a "psychological boost" that pushed real estate prices in Thu Thiem to new heights. Photo: Quynh Danh.

By 2025-2026, the Thu Thiem real estate market will officially enter the ultra-luxury phase. According to JLL, the resale price of many riverside apartments has reached 180-200 million VND/m2, approaching the price level of many high-end urban areas in Southeast Asia. Some exceptional properties even exceed this threshold.

Real estate prices in Thu Thiem are projected to continue rising.

Mr. David Jackson, General Director of Avison Young Vietnam, also noted that real estate prices in Thu Thiem are expected to increase sharply during the 2015-2025 period thanks to several fundamental factors such as its proximity to the old District 1 center, scarce land supply, synchronized infrastructure, and the orientation to become the new financial center of Ho Chi Minh City.

According to him, unlike the old city center, Thu Thiem is meticulously planned with low building density, a wide transportation system, and ample room for the development of large-scale amenities such as parks, squares, and community spaces. Meanwhile, the old District 1 has now entered a nearly complete development phase, so the potential for future price increases is predicted to be slower.

Ms. Le Thi Huyen Trang even suggested that Thu Thiem has now established itself as a "new center," directly competing with the old District 1 and surpassing many other long-established upscale areas of the city.

Besides the advantages in planning, according to Ms. Trang, the connectivity from Thu Thiem to Ben Thanh Market via the Thu Thiem tunnel or Ba Son bridge is even faster than some areas in the old District 1 suburbs. This has narrowed the price gap between the two areas.

When comparing it to the southern part of Ho Chi Minh City, she argued that Phu My Hung currently plays the role of a stable urban area serving the real housing needs of families, while Thu Thiem is emerging as a new center with great appeal in terms of property value growth and the ability to attract long-term investment capital.

Phu My Hung currently plays the role of a stable urban area serving the real housing needs of families. Photo: Quynh Danh.

Therefore, although real estate prices in Thu Thiem have increased sharply during the 2015-2025 period, with an average growth rate of approximately 20.4% per year for apartments and 23% per year for low-rise houses, Mr. David believes that this area is still in the process of transforming from a newly formed urban area to a more fully developed stage.

An expert at Avison Young assesses that Thu Thiem still has significant potential for price appreciation thanks to continued strong investment in infrastructure, iconic buildings, and high-end amenities. According to him, this area is gradually becoming a leader in setting the price level of luxury real estate in Ho Chi Minh City.

Meanwhile, Phu My Hung is predicted to continue maintaining its attractiveness thanks to its comprehensive planning and proven quality of life, but this area is entering the mature stage of its development cycle, so the potential for price increases is estimated to be significantly lower.

"The difference in demand for property in Thu Thiem lies in its future positioning. While Thao Dien or Phu My Hung are attractive due to their established living environment, Thu Thiem attracts buyers with the expectation of becoming a new financial center and urban icon of Ho Chi Minh City in the long term," said David.

Considering the price levels up to 2025, he believes that Thu Thiem has created a significant gap compared to Thao Dien and Phu My Hung, while considerably narrowing the gap with the old District 1.

In fact, according to a survey by Tri Thuc - Znews , apartment prices in Phu My Hung currently range from 80-150 million VND/m2 depending on the area, with an average increase of about 10% per year. New projects like The Regency in Phu My Hung are currently being resold at around 170-180 million VND/m2. Meanwhile, many new projects in Thu Thiem have far exceeded the 200 million VND/m2 mark.

From now until 2030, Mr. David predicts that Thu Thiem will enter the "urban functional completion" phase, when a series of important components such as Thu Thiem Bridge 3 and 4, pedestrian bridge, Ben Thanh - Thu Thiem metro line, central square, International Financial Center, and large-scale real estate projects will be operational simultaneously.

At that time, real estate prices will no longer be driven solely by expectations, but by actual cash flow, real demand from businesses, professionals, and high-value economic activities. According to him, after the 2026-2030 period, when the ecosystem of the new central business district is completed, Thu Thiem could enter a new growth cycle with price levels capable of exceeding the average in District 1 in some high-end segments.

Despite forecasts of continued price increases, experts believe that liquidity in the area will remain positive thanks to the main clientele being long-term investors who view central real estate as a safe haven asset amidst a volatile economic environment.

"The demand for property on this peninsula is not simply about accumulating assets, but also linked to a lifestyle philosophy that prioritizes experiences and direct connectivity to the future International Financial Center. This creates a highly selective market segment, aiming for the standards of a modern, regional-level city," Ms. Trang added.

Source: https://znews.vn/gia-bat-dong-san-thu-thiem-vuot-phu-my-hung-post1653778.html