District 1 property market on the up

Being in the heart of the city, the district is home to government offices, local and foreign companies and shopping centres.

The property market in the district, especially the condo segment, always runs hot and prices never come down.

In the last 10 years a number of infrastructure works have been completed, including the 12-lane Vo Van Kiet Boulevard connecting districts 6 and 8 and provinces to the city’s west, Nguyen Huu Canh Street connecting the eastern region and the Thu Thiem tunnel connecting districts 2 and 9.

The district also got a walking street during this period while the first metro route has been under construction here for several years.

It is soon set to become the first district in the city to become ‘smart’, with e-governance and smart transportation in the offing.

Thanks to all this, many people want to live here.

Speaking to Viet Nam News, Stephen Wyatt, country head of JLL, said: “If you look at any of the major cities around the world — London, Paris, New York — the prime downtown areas are very desirable locations for residential apartments.

“District 1 is also following the same trends that we have witnessed in more mature markets. Purchasers are usually willing to pay a premium for a ‘District 1’ address as there is an element of prestige and exclusivity that comes with it.

“There will always be the strong appeal and allure of purchasing property and living in a prime downtown address, which is why we are seeing a lot of developers, both local and from HongKong, Singapore and Japan, coming to this area with major luxury residential projects.

“This market is not for everyone, we would generally associate downtown living with young city professionals since families tend to move out of the city to find more space.

“Buying property in District 1 has been very appealing, especially to investors over the last number of years. District 1 is considered an established market with many good quality bars, restaurants and amenities within walking distance. This is a very compelling reason to invest in this district.

“Also supported by infrastructure, it is relatively easy to lease apartments. However, prices look expensive when compared to other regional cities and rental returns are likely to fall as new supply enters the market.”

Savills Vietnam said people buying housing in District 1 were those with high incomes from Ha Noi and other Asian markets. Many businessmen also hire condos here for up to US$5,000 a month.

Savills attributes the high demand to the availability of facilities like hotels, offices and luxury retail centres.

CBRE said in District 1 prices had remained strong due to a shortage of supply.

According to consultancies, supply in the condo market now is modest because the city recently decided not to license any more high-rises in districts 1 and 3.

Two projects currently in the market are The Grand Manhattan by Novaland and Alpha City by Alpha King, luxury condo developments with thousands of units.

Alpha King said it has just started Alpha City, which is at the intersection of Tran Hung Dao, Pham Ngu Lao and Nguyen Thai Hoc streets.

Nearly 400 condos had been sold so far, with 23 per cent of the clients being foreigners, it said.

Novaland said The Grand Manhattan had attracted a lot on interest.

Prices in the project at the corner of Co Giang and Co Bac streets started at US$6,000 per square metre.

Novaland said the condos, to be handed over in the last quarter of 2021, would have two or three bedrooms and smart-home technologies.