Real Estate in Hanoi and Ho Chi Minh City Increases in Price Thanks to Metro Line

Metro lines play an important role in promoting the increase of real estate prices in the area

Metro lines coming into operation in Hanoi and Ho Chi Minh City are playing an important role in promoting real estate prices that “follow” these lines to grow in both sales and transactions. The transportation and economic benefits that metro lines bring have breathed new life into the real estate market where the metro lines run.

Real Estate Prices Around Metro Lines Increase Sharply In Hanoi

In fact, Hanoi currently has 2 metro lines in operation. The first line is metro line 2A, Cat Linh station – Yen Nghia station with a total length of 13km, starting operation from November 2021. It is known that this metro line has 12 stations: Cat Linh, La Thanh, Thai Ha, Lang, Thuong Dinh, Ring Road 3, Phung Khoang, Van Quan, Ha Dong, La Khe, Van Khe, and Yen Nghia, which means that real estate in areas where there are stations will benefit from the metro line.

The second metro line is metro line 3 (phase 1), Nhon station – Hanoi station, the elevated section from Nhon to Cau Giay and vice versa has a length of 8.5 km. This metro line will be put into operation from the beginning of August 2024.

Metro lines play an important role in promoting the increase of real estate prices in the area
Metro lines play an important role in promoting the increase of real estate prices in the area

The presence of metro lines has breathed new life into the Hanoi real estate market, especially in areas where the metro line runs through. In Hanoi, the average price of apartments in Cau Giay district for segments within a 500m radius of the Cau Giay – Nhon metro line stations increased by over 40% within 1 year from Q3/2023 compared to Q3/2024. A series of apartment projects in Hanoi following the metro line have established new price levels. For example, compared to the same period last year, the selling price of the Discovery Complex project has increased from 70-72 million VND/m2 to 85-90 million VND/m2. Mipec Cau Giay apartment building also increased from 75-80 million VND/m2 to a common level of 90-100 million VND/m2. Indochina Plaza Hanoi apartments also increased in price from 80-85 million VND/m2 to 97-115 million VND/m2.

In Ha Dong district, apartment projects benefiting from the metro line have also established new price levels. For example, the selling price of Ho Guom Plaza apartments has increased from VND55-57 million/m2 to VND63-67 million/m2. Mulbery Lane has also increased from VND60-65 million/m2 to VND70-75 million/m2. New Sky Line apartments have also established new price levels, from VND58-63 million/m2 to VND70-75 million/m2. Westa apartments have also increased from VND55 million/m2 to VND62-65 million/m2.

In the near future, Hanoi will witness the rise of public transport, including metro lines. Because the Capital Law 2024 was passed by the National Assembly at the 7th Session. In which, Hanoi will limit private vehicles entering the center to reduce traffic congestion and emissions through the application of traffic congestion reduction fees. Real estate near metro lines will continue to take off.

Similar Story in Ho Chi Minh City

Similar increases also occurred in real estate following metro lines in Ho Chi Minh City. In particular, the Ben Thanh – Suoi Tien metro line officially put into operation is the foundation, establishing a new real estate price level in Ho Chi Minh City. Metro line No. 1, also known as Ben Thanh – Suoi Tien metro line, has a total length of 19.7 km, starting from Ben Thanh station (District 1) to Long Binh depot (Thu Duc city).

According to a survey by Batdongsan.com.vn, in 2024, Masteri Thao Dien apartments located near the metro line had an asking price of only 34-40 million VND/m2, but the current asking price has been set at 70-78 million VND/m2. Or Masteri An Phu near An Phu Metro Station, the selling price has also increased from 68-70 million VND/m2 to 97-120 million VND/m2. Compared to about 2 years ago, Gateway Thao Dien also set a new price, from 80-83 million VND/m2 to 120-125 million VND. At the beginning of 2024, The Nassim had an average selling price of 90-98 million VND/m2, but the current transaction price is 115-120 million VND/m2, Thao Dien Pearl also increased from the average of 68-70 million VND/m2 to 85-88 million VND.

In the area of ​​Thu Duc station to Binh Thai (Thu Duc district and old district 9), compared to the same period last year, Lavita Charm apartments also increased in price from 47-50 million VND/m2 to 55-60 million VND/m2, TDH Phuoc Long apartments also increased in price from 34-37 million VND/m2 to 42-45 million VND/m2, Centum Weath apartments also increased in price from 42-45 million VND/m2 to an average of 50 million VND/m2. A series of newly opened projects near metro line 1 such as Eaton Park, Masterise Grand View also have high prices, ranging from 110-150 million VND/m2.

Commenting on real estate that benefits from metro line 1, Mr. Dinh Minh Tuan, Southern Regional Director of Batdongsan.com.vn, said that the advantages of traffic and economic infrastructure that metro line 1 brings are important catalysts, promoting the increase in real estate prices. In addition, it is undeniable that the convenience of metro line 1 is the foundation for the formation of high-end projects around this area, shaping a new price level. However, Mr. Tuan emphasized that metro line 1 is only one of the important driving factors, the sustainable growth of a real estate project also comes from utilities, services and operations.

Source: https://batdongsan.com.vn/tin-tuc/bat-dong-san-ha-noi-va-tp.hcm-tang-gia-nho-tuyen-ga-metro-cd-hn-827294

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