Thao Dien Green is a new launch project that is located as its name suggest in Thao Dien Neighbourhood Thu Duc City (formerly District 2 Ho Chi Minh City). Booking started for Thao Dien Green since June 2021 and the project was launched for Phase 1 sales in October 2021.

With unblocked panoramic views of the Saigon River, Thao Dien Green is prime riverfront real estate. Such a location has become a rarity in Ho Chi Minh City these days. Coupled with the fact that Thao Dien Neighbourhood is a mature estate, this project is perhaps one of the last if not the last project in the locality. Thao Dien Green brings all the modern comforts of premium living by providing a full range of facilities typical to high-end developments.

In this article, we break down the project developer’s price list for Thao Dien Green to understand how the developer think. As well as, look at the result from the project’s phase 1 sales launch, to determine the market sentiments and buyers’ mentality. 

▸ General overview of Thao Dien Green

Atop a land area of 4,967.3 square meters, the project complex is designed 25 floors high with 2 basement levels. Thao Dien Green has a total project scale of 204 apartment units within 1 block sitting on top of a podium. As for the product mix, it consists of 204 typical apartment units, 6 penthouses and 9 shophouses. It is developed by the developer SIC Real Estate Investment JSC.

▸Floorplans and unit layouts of Thao Dien Green

Each typical level from the 4th Floor to the 23rd Floor of Thao Dien Green consists of 10 apartment units each. There are two main views from the apartments at Thao Dien Green one facing the meander of the Saigon River and the other to the iconic Landmark 81 Tower and the Thao Dien Neighbourhood view.

All the 3-bedroom apartment Units’ Number 03, 05 and 07 faces the Saigon River. With 2-bedroom apartment Units’ Number 04 and 06 sandwiched in between. As for the other view, the 2-bedroom apartment Units’ Number 02, 08 and 09, together with 1-bedroom apartment Units’ Number 01 and 10 have a view towards the neighbourhood. In total of the 10 apartments on each floor, there are two 1-bedroom units, five 2-bedroom units and three 3-bedroom units.

▸Thao Dien Green apartment prices

In the first sales phase, Thao Dien Green’s list price direct from the developer was on average USD 5,240 per square meter (psm) on its nett floor area (NFA) inclusive of Value Added Taxes (VAT) and before any discount. The minimum to maximum price range (inclusive of VAT) for each unit stack with its NFA are broken down as follows:

  • Apartment Unit 01 (52.05 square meters): USD 251,000 to USD 273,000
  • Apartment Unit 02 (82.05 square meters): USD 397,000 to USD 430,000
  • Apartment Unit 03 (120.99 square meters): USD 621,000 to USD 671,000
  • Apartment Unit 04 (80.55 square meters): USD 411,000 to USD 443,000
  • Apartment Unit 05 (104.01 square meters): USD 544,000 to USD 588,000
  • Apartment Unit 06 (79.37 square meters): USD 403,000 to USD 436,000
  • Apartment Unit 07 (125.85 square meters): USD 653,000 to USD 702,000
  • Apartment Unit 08 (84.15 square meters): USD 415,000 to USD 450,000
  • Apartment Unit 09 (79.42 square meters): USD 383,000 to USD 416,000
  • Apartment Unit 10 (57.79 square meters): USD 282,000 to USD 305,000

By listing out average price per square meter for each unit stacks, we can identify the rationale behind the developer’s pricing strategy. The average price psm including VAT on the NFA for each apartment unit stacks are as follows:

  • Apartment Unit 01: USD 5,078 psm
  • Apartment Unit 02: USD 5,071 psm
  • Apartment Unit 03: USD 5,359 psm
  • Apartment Unit 04: USD 5,335 psm
  • Apartment Unit 05: USD 5,486 psm
  • Apartment Unit 06: USD 5,332 psm
  • Apartment Unit 07: USD 5,413 psm
  • Apartment Unit 08: USD 5,179 psm
  • Apartment Unit 09: USD 5,077 psm
  • Apartment Unit 10: USD 5,112 psm

The developer’s pricing shows a distinct division of the project into 3 main sections, segregated according to their views. River view most expensive, followed by Landmark 81 view, followed by neighbourhood view. Also, it is interesting to note that the developer did not apply a foreigner premium. Therefore, foreign and local buyers of The 9 Stellars are entitled to the same pricing.

▸Thao Dien Green price analysis

At an average of USD 5,240 psm, Thao Dien Green sets a new price ceiling for Thao Dien Neighbourhood. The project achieved a selling price that is about 6.2% higher compared to its closest comparable Lumiere Riverside, which had a launch price of approximately average USD 4,915 psm on its NFA inclusive of VAT.

The most expensive stacks are apartment Units 03 to 07 as the developer put a premium on unblocked river views. If you take the average price psm for river view units compared to the other views, a 5.6% premium can be seen.

From the 4th floor up to the 22nd floor there is a 7.3% average price difference. This gives an average price increase of 0.4% per floor level, which works out to be USD 20 psm premium for each floor. Assuming apartment Unit 06 (2-bedroom) with a NFA of 79.37 square meters, the absolute price quantum increase per floor is only USD 1,587. 

▸Phase 1 sales outlook for Thao Dien Green

Against a backdrop of 256 bookings over 4 months, a total of 89 apartment units were released by the developer in sales phase 1. During the sales event a total of 55 units were sold, reflecting a 62% sales rate. Of the 55 units sold, 39 units were bought by foreigners and 16 units were taken-up by locals. This meant that 71% of all transactions were by foreign buyers and only 29% by local Vietnamese buyers. This statistic illustrated the strong appeal of Thao Dien Neighbourhood to foreigners.

1-bedroom apartment units were the least in demand with only 30% of all 1-bedroom sold. And 3-bedroom units performed the best by being a 100% sold out. While, 2-bedroom units performed decently with 68% sold in all. This indicates that for Thao Dien Neighbourhood, there is a preference for bigger size units.

All the river view apartment units (units 03 to 07) were sold, but many other neighbourhood and Landmark 81 Tower view units remained unsold. Such a trend indicates, that river views still are in overwhelming demand with a 5.6% price difference too small to influence the decision making of buyers. Also, apartments on the higher floors were the fastest to be sold before the lower floor units. The reason for this is the minimal floor premium for each floor level as stated in the above point. As a result, lower floor units with no river view remained unsold. This was the case for majority of the apartment Units 01, 02, 08, 09 and 10, that were below the 13th (12A) floor.    

▸Final note regarding pricing and sales of Thao Dien Green

With the launch price of Thao Dien Green being the highest ever for Thao Dien Neighbourhood in Thu Duc City (formerly District 2) Ho Chi Minh City, we wonder if the prices of subsequent new launch projects in this neighbourhood will continue to climb. Due to the limited land in Thao Dien Neighbourhood for developing projects, theoretically prices of new launch projects will continue to increase. However, with the latest new launch prices surpassing that of the peripheries of HCMC’s central business district and closing the price gap with Thu Thiem Neighbourhood, there is a chance that the new launch price of Thao Dien Neighbourhood has peaked and future price increases will be in tandem with the general housing market, growing minimally.

Disclaimer:

This article is intended to be an informational resource to provide knowledge in guiding real estate investors, home owners, property buyers and sellers to have an overview on how Ho Chi Minh City’s apartment market is currently and what awaits in the future. All facts and figures included in this article are based on our research and interpretation. For more in-depth analysis and opinion on Ho Chi Minh City’s housing market, please speak to any of our real estate agents.