This survey consulting unit has just published a report on Thu Thiem New Urban Area, which mentions the opportunities and challenges of the future economic and commercial center of Ho Chi Minh City.
In terms of opportunities, Thu Thiem has a strategic location.
The land fund here is ready with 99% of the land area having been compensated and cleared.
In the opposite direction, the challenge for Thu Thiem is not small.
The infrastructure here is still lacking.
The focus of Thu Thiem development is commercial and office real estate.
Land prices in Thu Thiem, according to CBRE, are at a high level.
The total floor area of newly approved projects on the West Bank of Saigon, including: Tan Cang, Ba Son and Khanh Hoi, is 4.9 million m2, only slightly higher than the figure of 5.1 million m2 of construction floor space.
Planned since 1996, up to now, Thu Thiem has more than 99% of the land area cleared, with total compensation costs estimated at 800 million USD.
However, as of September 2015, most of Thu Thiem was still empty land, connected to the west bank of the Saigon River through a tunnel and a bridge connecting Thu Thiem with the rest of the city.
CBRE compares Thu Thiem to `Saigon’s Eastern Street`, in order for this urban area to come into operation soon, it requires new, more radical policy decisions.
A vital factor for project development is the need for a clear and simple investment process.
This approach is to minimize the risk of speculation and prevent land prices from being pushed up to unreachable levels.