Thu Thiem, the proposed financial district and mixed-use urban area of Ho Chi Minh City, is set to become the largest inner city development in Southeast Asia.

According to the Vietnamese government, the area is meant to serve as a centre of finance, commerce and high-class services, an international strategic area, as well as a centre of culture, leisure, and entertainment. It will be home to headquarters and residential towers supporting a residential population of 145,000 and employee population of 217,000.

Known as the city’s new Central Business District (CBD), Thu Thiem enjoys nearly 8.5km of frontage along the Saigon River, making it a breathtaking location for waterfront developments. The area is also strategically situated adjacent to District 1, HCMC’s current CBD, across the Saigon River.

Known as the city’s new Central Business District (CBD), Thu Thiem enjoys nearly 8.5km of frontage along the Saigon River, making it a breathtaking location for waterfront developments. The area is also strategically situated adjacent to District 1, HCMC’s current CBD, across the Saigon River.

It’s no wonder that despite being 657 hectares large, Thu Thiem enjoys incredible transport connectivity to other established urban areas in HCMC, including District 1, Saigon Hi-Tech Park and Rach Chiec Sports Complex, as well as Phu My Hung New Urban Area in District 7.

“As infrastructure improves within Thu Thiem, we anticipate that larger firms will start considering Thu Thiem as a viable alternative to the existing CBD and set up their head offices there” , according to Stephen Wyatt, Country Head of JLL Vietnam.

Leaders from the Ho Chi Minh City People’s Committee and representatives from the Lotte Group signed an investment contract for the Thu Thiem Eco Smart City project on July 25 2017.The total investment capital for Eco Smart City is expected to be VND20.1 trillion ($884.26 million), excluding site clearance and compensation. The project will be built on a land area of 7.45 ha.

The Lotte Group will build multi-function commercial areas with a total floor area of about 505,000 sq m. Buildings with unique architecture will be a highlight in Functional Area 2a.

Real estate projects in Thu Thiem New Urban Area, the future business hub of Ho Chi Minh City, have been selling quickly and gaining value.

Land value in Thu Thiem increased by 30 to 40 per cent in the past three years, according a recent report released by JLL Vietnam.

While this is a considerable bump, JLL believes it is sustainable for several reasons. Initial land values are coming off a relatively low base, the speed of infrastructure construction has increased dramatically during this past period, the most recent residential projects launched in Thu Thiem have witnessed strong demand, and finally Thu Thiem is the largest undeveloped parcel of clear, master-planned land near the city centre.

According to Yong-Beom Kim, manager at GS Engineering and Construction, Thu Thiem is designated as Ho Chi Minh City’s new central business district (CBD).

“After the completion and operation of the infrastructure – including Metro Line No. 2 and bridges No. 2, 3, and 4, connecting to districts 1 and 7 – Thu Thiem will be operating as planned,” Kim said.

In addition to land values appreciating in Thu Thiem, the neighbouring areas in District 2, such as Dong Van Cong, An Phu, and Thao Dien have also witnessed increasing land prices.

With rapid urbanisation, the establishment of Thu Thiem projects and some improvements in the legal and planning framework, it is reasonable to say that land prices will continue to increase over the coming years.

Source: Vietstock , Vietnam Economic Times