Apartment prices in Thu Duc reach 100 million VND/m2, causing real estate agents to "cry their eyes out".

VTC News•07/11/2024

'The developer is selling at a discounted price'

Last weekend, Masterise Homes' signing of a distribution agreement for its first high-rise phase (two buildings named Spark and Glow) with approximately 620 apartments in The Global City urban area caused a stir among real estate brokers. Hundreds of real estate sales agents have been preparing promotional campaigns, sales pitches, and even speculation about prices and investment opportunities for this project.

Although not officially launched for sale yet, real estate agents have been speculating for months that apartment prices in this project could reach $7,000/m2. (Photo: Developer)

According to the developer's announcement, the first two towers in this urban area are expected to be priced from 100 million VND/m2 - excluding VAT. This price immediately caused a stir in the market, with sales agents from many agencies creating sensational stories and complaining that the developer was selling at a discounted price. A month before the official announcement, many agencies were quoting a price of 120 million VND/m2 for this project, and some customers had already placed orders with a reservation fee of 100 million VND.

Months ago, this apartment building was rumored to be priced at around $7,000 per square meter.

The Global City urban area in An Phu ward, Thu Duc City, is advertised as having a "prime" location, situated next to the Ho Chi Minh City - Long Thanh - Dau Giay expressway, conveniently connecting to central areas and adjacent to the Rach Chiec Sports Complex.

The two high-rise towers, whose prices have just been announced, are also being advertised as the only luxury apartment project in Vietnam designed by Foster + Partners and WATG, a world- renowned architectural firm.

However, with prices starting from 100 million VND/m2, if a buyer purchases the smallest 1-bedroom apartment of approximately 55m2, the cost would still be around 6 billion VND. 2-bedroom apartments cost 7.7 - 8.5 billion VND, and 4-bedroom apartments cost over 18 billion VND, while the price of penthouses with areas ranging from 143.84 - 372.2m2 has not yet been announced.

According to the plan, the high-rise section of The Global City will have 25 high-rise buildings with approximately 8,400 apartments. (Photo: H. L)

According to Mr. Dinh Long, a private investor in Binh Thanh district, at this price, people in need of housing can buy a house with an area of about 40-55m2 in many areas of Thu Duc.

As an investor, Mr. Long had been researching this project and other projects currently on sale in the area for months. According to Mr. Long, the apartment has the advantage of a good location, situated in a luxury urban area being developed to become the new center of the eastern part of the city, with many modern amenities. However, the price of over 100 million VND/m2 makes investors like him think twice, and it will be very difficult for those with a genuine need for housing to afford.

Although the project hasn't officially launched for sale yet, real estate agencies are already accepting reservations. Brokers reveal that over 2,000 people are involved in selling the 620 apartments in this project, and the number of reservations has already exceeded 1,000.

The Global City urban area spans 117.4 hectares and, in addition to villas and townhouses, includes 25 high-rise buildings with approximately 8,400 apartments. Two towers currently for sale are approximately 25 stories high. Completion is expected around the end of 2026.

A series of projects priced over 100 million VND in Thu Duc.

Alongside the high apartment prices exceeding 100 million VND/m2 in The Global City urban area, many other projects in Thu Duc City with exorbitant prices are also being offered for sale. This is the excuse real estate agents use to claim that developers are undercutting prices, and that a price of 100 million VND/m2 will force many other projects to "suffocate."

Eaton Park, currently under construction on Mai Chi Tho Street, has phase 2 apartments priced from 142 million VND/m2. (Photo: Developer)

Specifically, the Eaton Park project on Mai Chi Tho Street (An Phu Ward), right at the An Phu roundabout and adjacent to the Rach Chiec sports complex, is currently on sale with prices excluding VAT starting from 142 million VND/m2.

Eaton Park, invested in by Malaysian investor Gamuda Land, covers a total area of 3.7 hectares. With two main sections comprising six towers of 29-39 stories, the project is expected to supply approximately 2,000 luxury apartments to the market, with completion and handover scheduled for 2027.

Also in Thu Duc City, the King Crown Infinity project, invested by Bamboo Capital Group on Vo Van Ngan Street, Binh Tho Ward (the former center of Thu Duc District), is being sold at prices starting from 5,000 USD/m2, equivalent to 125 million VND. This project covers an area of only 12,652 m2 with 2 apartment blocks of 30 floors each, comprising 729 apartments. King Crown Infinity was actually on sale for three years prior, from 2021 to 2023.

Meanwhile, The Opus One, the last two towers in the Vinhomes Grand Park urban area, is also accepting reservations at around $5,000/m2. Studio apartments of 30.9 - 38.9m2 here are priced from 4.5 billion VND. There are projects expected to be launched in the fourth quarter of this year with prices around $10,000/m2...

Real estate experts believe the market is deeply intoxicated by inflated prices. Compared to many high-end projects in District 1, District 3, or even projects within the Phu My Hung urban area (District 7) which are priced at only 80-100 million VND/m2, Thu Duc's transportation infrastructure is still incomplete and under investment, while Phu My Hung's urban infrastructure is already complete and offers the best living environment currently available.

Expert Dinh The Hien believes the market remains sluggish, but new projects are continuously launching, shocking buyers with exorbitant prices. However, based on his on-site observations in some "hot" areas, the reality is not that "hot." He predicts that current land prices and prices beyond 2025 will not skyrocket. He believes that liquidity will likely improve in 2025, rather than experiencing a price surge.

Experts advise that those with a genuine need for housing should avoid investing in large-scale projects with prices reaching hundreds of millions of VND per square meter. (Photo: H.L) — Experts advise that those with a genuine need for housing should avoid investing in large-scale projects with prices reaching hundreds of millions of VND per square meter. (Photo: HL)

According to him, investors need to question whether the rumored increase in real estate prices is truly market-driven or merely a localized phenomenon fueled by media coverage. And if buying a home to live in, buyers should ask themselves why they need to purchase large projects with apartment prices reaching hundreds of millions of VND per square meter.

While the districts of Binh Thanh and Phu Nhuan have many good apartment buildings, some secondary apartments of around 70m2 are being advertised for 4.5 - 5 billion VND, averaging around 65 million VND/m2, which is very reasonable for living. Those who genuinely need housing should take their time searching for a reasonably priced place.

Besides price, buyers should also check and evaluate before deciding to invest, such as observing the living environment and the potential for renting it out. They shouldn't rush into new projects just because they hear that real estate supply is scarce and prices are high.

Real estate research companies' reports for the first 10 months of 2024 highlight several notable points, with the average apartment price in Hanoi reaching 60 million VND/m2, approximately 10% higher than the average in Ho Chi Minh City. The average launch price in both markets has also exceeded 60 million VND/m2.

Projects currently for sale or about to be launched in Thu Duc City are offering staggering prices.
Gamuda Land's Eaton Park is now accepting reservations for phase 2, with prices starting from VND 145 million/m2.
Masteri Homes' The Global project is currently accepting reservations, with prices starting from 100 million VND/m2.
The Opus One - Vinhomes Grand Park is currently accepting reservations, priced at $5,000 USD/m2.
King Crown Infinity on Vo Van Ngan Street, Thu Duc City, is now open for sale, with prices starting from 125 million VND/m2.
The Opusk Residence - Metropole Thu Thiem is currently accepting refundable reservations, with a reservation deposit of VND 500 million per apartment. The expected price starts from USD 10,000 per square meter.
The Foresta villa project, a collaboration between Khang Dien and Kepple Land, located on Vo Chi Cong Street in Phu Huu Ward, is nearing completion with prices starting from 200 million VND/m2.

Ha Linh

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