Thu Thiem set to relieve Ho Chi Minh City’s infrastructural challenges
Undersupply of Grade A office stock in the CBD has pushed office rents to levels not seen since 2008, indicates data from real estate consultancy JLL.
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. Thu Thiem will relieve some of the pressures Ho Chi Minh City currently faces. The infrastructure within Ho Chi Minh’s existing CBD is starting to buckle under the pressure of rapid expansion in the last three decades. “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.
Whilst the majority of land has been allocated, several empty sites remain for developers and investors, with Thu Thiem’s sheer size posing several challenges. Thu Thiem’s developable space consists of 176 land parcels. This includes approximately 3.4 million square metres of commercial space, which can accommodate 217,000 employees; and 3.2 million square metres of residential space for a residential population of 145,000.
“It is critically important that developers pay careful attention to market conditions, as well as supply and demand dynamics to limit the risk of oversupply in the future,” says Mr Wyatt. “It is inevitable on a large mixed-use development site that the area will be a construction site for many years. Developers and purchasers of residential property will need to be mindful of this fact when investing in Thu Thiem.”
There remains a gap in the market for school operators as well. According to the Thu Thiem master plan, ten land parcels have been set aside for schools. But the current lack of infrastructure and residential communities have meant a modest take-up rate from school operators so far.
Unlike other new urban development areas in other countries, the lack of preferential policies and incentives are some of the biggest hurdles to the speed of Thu Thiem’s development. “In order to speed up development activity we would like to see the creation of a special ‘economic zone’ with less bureacractic red tape which will create a favourable environment. A sound legal and planning system will also catalyse the area’s development for investors and developers,” says Mr Wyatt.”
17:52, 2025/02/22
Party chief experiences Ho Chi Minh City’s first metro line
The Party chief’s visit is significant after the National Assembly approved a resolution on February 19 to pilot mechanisms for Ho Chi Minh City’s urban railway development.
20:25, 2025/02/18
Hanoi greenlights road linking Gia Binh Airport
The road construction project is in line with the city's general planning guidelines and ensures connectivity with existing transportation networks outlined in approved planning schemes.
18:07, 2025/02/14
Lao Cai, Hanoi, Haiphong Railway Project submitted to National Assembly
The line is expected to boost socio-economic growth along the Lao Cai-Hanoi-Haiphong corridor, improve national and international rail links, and support industrialization and modernization.
18:44, 2025/01/30
Master urban planning to lift Hanoi into new era: Expert
Hanoi’s new planning frameworks will serve as a critical foundation for developing policies, action plans, and investment projects that drive economic and social progress.
05:47, 2025/01/27
Hanoi Hanoi to extend cashless parking pilot until June 30
An additional 191 streets and roads in Hanoi were temporarily approved for parking at the end of last year.
22:20, 2024/12/27
Hanoi to rent nearly 900 sidewalks next year
The number of streets approved by the city's authorities for on-street parking is 234 as of December 16, 2024.
- Quoc Oai District breaks ground on industrial clusters
- Stronger decentralization key to Hanoi's urban railway ambitions
- Prime Minister urges acceleration of social housing projects
- Hanoi Forum explores innovative solutions for sustainable urban development
- Prime Minister urges Chinese companies to collaborate on infrastructure projects
- Lao Cai – Hanoi – Haiphong railway section to be built in 2027