Thu Thiem Set To Relieve HCMC’s Infrastructure Challenges

Thu Thiem Set To Relieve HCMC’s Infrastructure Challenges
December 01 16:14 2017

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 the real estate management company, JLL.

Thu Thiem is expected to relieve some of the pressures Ho Chi Minh City currently faces. The infrastructure within Ho Chi Minh’s existing CBD (Central Business District) is being pushed beyond its capacity due to the pressure of rapid expansion during the last three decades.

The undersupply of Grade A office stock in the CBD is pushing rents higher, reaching levels not seen since 2008. Traffic congestion has increased over the past five years, with the number of cars increasing 35 per cent annually from 2012-2016 according to VAMA figures.

“The master plan for Thu Thiem is set to alleviate the lack of supply faced in the existing CBD,” says Stephen Wyatt, Country Head, JLL Vietnam. “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.”

Major developers such as Keppel Land have already set their sights on Thu Thiem, entering a joint venture with local Vietnamese partners in 2016 to develop a prime waterfront site with premium residential apartments, office and retail properties.

Located across the Saigon River from District 1, the 660-hectare area known as Thu Thiem is ideally located to become the Pudong of Ho Chi Minh City.  Transportation to and from the Thu Thiem peninsula from District 1, District 9, Thu Duc District and the rest of District 2 is very simple and major roads projects and a Metro line station are planned for the area.

Recognizing this important feature of Thu Thiem, the local government introduced a development plan for the area in 1997.  Currently, 99% of land has been cleared and Thu Thiem can offer 380 hectares of residential space for 26,000 apartments and another 330 hectares of commercial space. Upon completion, Thu Thiem will have a resident population of 150,000 with a daily working population of 220,000 ~ 250,000.

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