Metro Line Real Estate Potential
Information that metro line 1 will be commercially operational in 2022 is not only important to Ho Chi Minh City’s public transport system but also strongly promotes the value of neighboring real estate.
Real estate along the metro line is constantly being promoted
Since it was announced that the Government approved 8 metro lines connecting all districts of Ho Chi Minh City, the real estate market in metro areas has begun to be active, and many projects have poured in to welcome the summer wave. floor. Especially when metro line 1 (Ben Thanh – Suoi Tien) is completing the last important steps to put into operation in 2022, these projects are heating up more than ever.
The operational metro line 1 will play an important role in the transport system of Ho Chi Minh City, increasing inter-regional connectivity, and becoming more civilized and modern. This is the premise for the long-term development of the entire East Saigon area. Real estate projects located around the metro line will also benefit greatly from the potential for strong price increases.
Practices in countries around the world that have put the metro into operation show that the supply of apartments and real estate value premises are continuously increasing.
In the US, when the metro system in Dallas County, Texas was put into operation in 2002, the housing supply near this metro line grew 18.7% in just 10 years. In Austria, the supply of apartments in districts near the S-Bahn metro system also increased by 18.7% in 10 years.
In Finland, when the Metro Helsinki line opened in 1982, the price of metro apartments in the range of 500-750m increased by 8-11%. In Beijing – China, the value of the metro real estate has increased by 15% within a radius of 1-3 km.
In Asian markets, house prices near public transport are typically 6%-25% higher than the average and have 10-20% higher potential for price appreciation than in other regions. In Ho Chi Minh City, since 2018, the price on the secondary market has increased significantly as the metro line is gradually being completed, with the resale price 25%-75% higher than the starting price.
Attractive investment opportunity with real estate along the metro line
According to the survey, Ho Chi Minh City has 26 existing apartment projects along metro line 1, stretching through the city’s districts such as District 1, Binh Thanh, District 2, District 9, and Thu Duc. Typical projects are Grand Marina Saigon, Vinhomes Central Park, Lumière Riverside, The Vista, District 2 Thao Dien, Saigon Sports City, Vinhomes Grand Park, and Masteri Center Point, Him Lam Phu An, Metro Star, Lavita Garden, The 9 Stellars, …
These projects have a great advantage in terms of location along metro line 1, and at the same time possess “golden security” from reputable investors. The average selling price at the end of 2020 is from 50 to 80 million/m2. In addition to the upcoming metro line 1 coming into operation, the constant hunting of investors also helps the value of these projects continue to increase sharply, establishing a new price level for the entire East Saigon area. is easy to understand.
Although it is a hot segment in the market, when deciding to choose projects along the metro line, investors need to pay special attention to the limitations of noise and traffic congestion around the station. metro, project legal, construction progress…
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