Although only parts of the Thu Thiem underwater tunnel have been dropped into the river, people living in District 2 of Ho Chi Minh City keep talking about land price increases in the area.
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| Thu Thiem underwater tunnel could create a property “wave” |
Since the first segment of the underwater tunnel was dropped successfully into water, there have been constant discussions among people of the district about land price increases. When the project is completed, it will take only a few minutes for people here to access the biggest administrative, financial and commercial centre in Ho Chi Minh City.
According to real estate agencies in District 2, average property prices have gone up VND300,000 - 600,000 ($15.8-31.6) per square meter compared with February.
Land prices in An Phu and An Khanh areas have increased over VND1 million ($52.6) per square metre. Some owners sell their land at VND40 million ($2,104) per square metre compared with a price of VND37-38 million ($1,947-2,000) per square metre in February.
It’s impossible to identify the exact land price in the Thanh My Loi area because nobody wants to sell as they keep waiting for the market to move.
The area has mainly narrow roads connecting the center which are often flooded so the land price is often two times lower than in the An Phu and An Khanh area. However, when the Thu Thiem underwater tunnel is put into operation, transportation infrastructure will be improved and the distance between Thanh My Loi and the centre will be the same with An Phu-An Khanh.
In fact, there are very few successful deals because investors are researching market reaction. It will be a unique situation when land price goes up dramatically after Thu Thiem underwater tunnel is completed because investors have taken all opportunities from infrastructure projects which were announced to the public a long time ago to surge the price. It’s a possibility that the market will become a little bit more excited.
