Property Prices Around Metro Line 1 Surge by Up to 200%

On November 19th, at the seminar titled “The Journey to Realizing Vietnam’s TOD Urban Model: Opportunities and Challenges,” organized by DKRA Group under the guidance of the Vietnam Real Estate Association (VNREA) and with media sponsorship from Vietnam Television Center in Ho Chi Minh City, numerous experts emphasized the urgent need to implement the Transit-Oriented Development (TOD) urban model.

Dr. Nguyen Van Dinh, Vice Chairman of VNREA, stated that Ho Chi Minh City is entering a phase of robust restructuring, particularly in urban planning and spatial governance.

TOD is considered the “backbone” of the new urban strategy, aiming to address traffic congestion, expand urban spaces, and enhance long-term quality of life.

According to Dr. Dinh, as the city expands, the demand for living near public transport hubs will create new development poles, laying the foundation for Ho Chi Minh City to become a true megacity.

Sharing the same view, Vo Huynh Tuan Kiet, Director of the Residential Project Marketing Department at CBRE Vietnam, noted that post-merger, Ho Chi Minh City will form satellite cities and move towards a “TOD revolution.” Once the Metro infrastructure is complete, residents will gradually accept living further from the city center, prioritizing projects with clear legal status, full amenities, and rental potential.

In reality, property prices around Metro Line 1 have increased by 50% to 200% during the pre- and post-operation phases—a trend consistent with many countries globally. However, Mr. Kiet cautioned that for TOD to be effective, public transport must be synchronized between residential areas and stations to reduce private vehicle traffic.

From an urban planning perspective, Dr. Ngo Viet Nam Son emphasized that TOD is not only important but also “crucial” for Ho Chi Minh City. He pointed out that Vietnam has only been approaching this model for about 3 years, while the world has been ahead by decades. Therefore, building a TOD ecosystem must ensure convenience for all, encourage walking habits, and integrate planning from the outset.

Additionally, the city needs to promote public-private partnerships, strengthen the legal framework to leverage land funds for budgeting, and integrate smart technology in Metro operations and urban management.

According to Dr. Son, a true TOD living environment should encourage residents to walk more and foster a sense of community tied to public transport lines.

The seminar also noted that Ho Chi Minh City currently has only one Metro line and no fully developed TOD urban areas. Thus, TOD is expected to become a core factor shaping the housing market over the next 10-20 years.

A representative from the Ho Chi Minh City Department of Planning and Architecture announced that the city will implement TOD in phases. In the first 5 years, Ho Chi Minh City will pilot 11 TOD locations with a scale of 1,700–1,800 hectares along Metro Lines 1, 2, and Ring Road 3. Specifically, the old Di An area will have a 420-hectare TOD cluster with an investment of nearly VND 1 trillion.

By 2035, Ho Chi Minh City aims to develop a 355 km-long Metro network and mobilize approximately USD 7.8 billion from TOD land funds to reinvest in public transport infrastructure. This strategic move is expected to alleviate congestion, improve living standards, and promote sustainable urban development in the coming decades.