What are the best districts to buy in Ho Chi Minh City?

What are the best districts to buy in Ho Chi Minh City?

Ho Chi Minh City (HCMC) has 24 districts in total: 19 inner districts and 5 outer suburban districts. Of course, not all districts are an ideal place for buying a house. Based on our experience with international clients, we narrow them down to only 4 districts. We deem these the most suitable ones if you are considering buying a house in HCMC. We selected these districts based on criteria which our foreign clientele normally would require. The main characteristics are: relatively good route connecting to the city centre, have a good selection of shops, restaurants and other entertainment services and finally, reputable international schools are around.

District 1 (D1)

D1 is the Central Business District (CDB) in HCMC. From historic time until now, the district has always been the most concentrated area for businesses. There are many luxury apartments as well as 5-star hotels found here. A majority of big international companies have offices within the area. As a result, the land resources here have been quite scarce for a long time. The real estate prices in the area reflect this fact, which the highest for the entire city. All on-going real estate projects in D1 are luxury properties. The biggest advantage is that even when the economy slows down, housing values in this district are always stable. If you are able to secure a property in this area, for living purpose, it’s near to everything, for leasing purpose, it surely will bring you a high and steady stream of income.

District 2 (D2)

D2 is the “new centre” of HCMC. The district overall’s condition has changed significantly over the last 10 years. As land resources in D1 become more exhausted whilst demand for high-quality office space as well as living apartment is still on the rise, D2 is the next optimal choice. The neighbourhood is full of fancy restaurants and coffee shops, imported goods stores, international schools, luxurious villas, and apartments complexes. Only 15 minutes away by motorbike to D1, it is a popular location for Westerners. A proportion of wealthy Vietnamese community also favours the area.

Within the past decade, the area has seen many real estate projects as well as improvement on the surrounding infrastructures. Four arterial roads construction in Thu Thiem Urban area at the cost of $353.74 million are in progress. Thu Thiem Bridge 2 which will connect the area with district 1 is also under construction. Developed later, D2 focuses more on the road quality as well as “green spaces”. In Thu Thiem area, roads are typically big with 4 – 6 lanes for vehicles. There’s a lot of greenery and the area feels more spacious than D1 in general.

District 7 (D7)

D7 is located further away towards the west of the city. This is a very popular area with the Korean and Japanese community. D7 came to the rise before D2 therefore the price here is more affordable than D1 and somewhat lower than D2. Within D7 there is Phu My Hung Urban area. First started in 1997, this is a successful model of urban housing planning of the city. The area offers good air quality, good surrounding security as well as a variety of many international schools with top quality standards for the children.

The biggest disadvantage is the connecting traffic between D7 to downtown is not that convenient. Commuting time between D7 to the city centre could be a discouragement, especially during rush hours. But if you work in D7 then it shouldn’t be a big problem. Many high-quality services and big shopping centres are around, sufficient to accommodate any need. Many foreign companies also locate their businesses here. To attract more investment and improve the general commune time inter-district, many main traffic-routes are under construction. Thu Thiem 4 bridge is being built. When completed this will link D7 to D1, D2 and Thu Thiem urban area. The three-floor underground tunnel Nguyen Huu Tho-Nguyen Van Linh is expected to be completed in 2022, which then will help tremendously with traffic congestion.

District 9 (D9)

D9 is the new rising star thanks to its prime location as the eastern gateway to HCMC. It is the most further away, connecting with Bien Hoa and Dong Nai. As the centre of HCMC becomes more crowded, the local government has decided since the 2000s to expand the city toward the east. D9 instantly became a hot spot thanks to its promising location and advantages. At the time of this writing, D9 might appear not so much of an ideal place for a home even though a number of clusters of residential homes are being built. The surrounding infrastructures are still being developed. There are not that many entertainment places, schools or necessities. A majority of people who invest in D9 now aim for long-term growth. They all understand the potential of the area.

Many important infrastructure projects such as the Mien Dong (Eastern Region) Bus station, whose capacity is up to seven million passengers a year, is being built. Once completed, this is the largest bus station in Vietnam. Saigon Hi-Tech Park, which often is referred to as Vietnam’s Silicon Valley, is also located here. Many major companies such as Samsung, Intel, Air Liquide, Datalogic or Nidec choose this place to set up their R&D and production facilities. Fulbright University started the construction for the main campus here in May 2020. Other major important ongoing infrastructures are the Ring Road 3 and Metro Line 1. Experts predict that real estate prices will certainly rise as these projects are on their way to completion. Therefore, whilst investing in properties in district 1, 2 or 7 might bring steady income quickly and easily, investing in D9 is a long-term strategy but definitely has great potential.

 

Conclusion

Within the 24 districts of HCMC, we recommend district 1, 2, 7 and 9 as the best ones for foreign investors in buying a house in HCMC. Each district comes with a specific set of advantages and disadvantages. District 1 is the most central location, but the number of available apartments is limited and prices are high. District 2 and 7 are further away and offer quite similar benefits with existing necessities in surrounding living areas. D9 is the new rising star, even though the location might be a discouragement to some people. Once the surrounding infrastructures are completed, the area unquestionably will attract a lot of high-skilled labours as well as other international experts.

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