The Metro line 1 and real estate market
1. What is the Metro line 1?
The metro line 1, Ben Thanh – Suoi Tien Section is an urban railway belonging to Ho Chi Minh City urban railway project. This is one of the first rapid urban transit systems in Vietnam and is built in Ho Chi Minh City. The project is a combination of metro, tramway and monorail. The Metro system launched in 2012 and is expected to operate in 2021. After finishing, this system will make Ho Chi Minh City become the second place in Vietnam to have a rapid transit system.
The system includes 8 urban railway lines with the total length of 169 km, 1 tram line with 12.8 km and 2 monorail lines with 43.7 km. It has 175 stations with the total system length of 255.5 km.
2. Information of the Metro line 1: Ben Thanh – Suoi Tien
You will have an overview of the Metro line 1 through the following information:
- Alignment: Ben Thanh (Quach Thi Trang Square) – Le Loi – Nguyen Sieu – Ngo Van Nam – Ton Duc Thang – Ba Son – Nguyen Huu Canh – Van Thanh – Dien Bien Phu – Sai Gon Bridge – Ha Noi Highway – Long Binh Depot.
- Total length: 19.7 km (2.6 km underground and 17.1 km elevated).
- Number of station: 14 stations (3 underground stations and 11 elevated stations).
- Speed: 80 km/h underground and 110 km/h elevated
- Time of 1 route: 20 minutes (including pick-up time at stations)
- Depot and workshop at Long Binh Ward, District 9 with an area of 20 hectares.
- Project cost (estimated): 2.491 billion USD.
- Donor: JICA – Japan.
- Expected to be completed in the period 2020-2022.
3. General benefits of the Metro system:
a. Benefits towards environment
All trains of the Metro system are powered by electricity, which avoids emitting toxic gases causing greenhouse effects and other negative effects towards environment.
The Metro system also helps to reduce noise and contributes to protect people’s living environment significantly.
In addition, the Metro system also reduces the need for parking of personal vehicles. Thanks to it, the urban area is increased to utilize for community purposes such as green parks, public entertainment, etc.
b. Benefits towards economic and social development
From a macroeconomic perspective, investment in construction and development of the Metro system is also a good investment bringing many benefits towards economy and society. HCMC Metro System will impulse the growth of areas along the lines. Moreover, it also creates a wide range of direct jobs as well as relevant jobs during the process of construction and operation.
Therefore, in addition to diversifying revenue resources to ensure ticket prices in a reasonable level that suit all income classes, the Metro system also creates more jobs for people and contribute considerably to promoting the economic and service development in this area.
4. The Metro line 1 and real estate market
The expected passenger quantity per day for the first Metro line in Ho Chi Minh City is about 186,000. With this number, the retail market which is developed in residential community by commercial centers will receive benefits from high density of pedestrian traffic.
Thanks to improving people’s access to new areas of working, entertaining and shopping, the Metro line 1 will bring a new face for real estate market. Specifically, in the surrounding areas, land prices increase; real estate projects are boomed; retail units and office projects are moved further away from the center.
Usually, the differential price can be higher than the average level in areas that have a strong growth of housing market and a synchronous traffic system being convenient for residents’ travelling.
According to CBRE Vietnam: “the Metro projects being invested by Ho Chi Minh City will show us that the entire real estate price level will change strongly. Following our research and forecast, if any real estate project is located within a radius of 500 miles from these Metro lines, the selling price will increase about 20% in the near future.
Once these projects are completed as scheduled, the price will increase continuously. In theory, a building that is adjacent to a transit station usually owns the higher renting or selling price compared to further buildings. That is because the good public traffic system will allow surrounding residents to approach the central points easily and quickly. This has been proved in some countries, with selling prices of houses close to the public traffic system valued at 6-45% higher.”
Conclusion
We will see a new look of Ho Chi Minh City after the Metro line 1 Ben Thanh – Suoi Tien is completed. The city is not only more dynamic and modern but also has a fresher living space. Furthermore, the economy and society of the region also has a significant enhancement. Especially, the real estate market will be extremely eventful and potential.
We hope that you will have useful information with this article towards the Metro line 1. If you need more information or find good apartments, please contact us:
- Ms. Helen: 0903004226
- Email: helen@visreal.vn
- Address: 1F, 292 Ung Van Khiem, W.25, Binh Thanh, HCMC, Vietnam.
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(Source: Wikipedia, HCMC Metro, CBRE Vietnam, Hanoi Metro)
Dennis
