Currently, Hanoi has 2 urban railway lines in operation. The first is line 2A, Cat Linh station - Yen Nghia station, which will be in operation from November 2021, with a total length of 13km. The second is line 3 (Phase 1) Nhon station - Hanoi station, the elevated section from Nhon to Cau Giay and vice versa. This metro line will be put into operation from the beginning of August 2024, with a length of 8.5km.
By 2030, Hanoi city aims to complete 97 km of urban railway lines, including Line 2, the remaining parts of Line 3 and Line 5. By 2035, the city will continue to operate 301 km out of a total of 398 km of railway, accounting for 76% of the total railway length, including Lines 1, 2 extended to Soc Son, Line 2A extended to Xuan Mai, Line 3 extended to Son Tay, Lines 4, 6, 7, 8 and the line connecting satellite cities. By 2045, the city will complete 200 km of metro lines of adjusted and supplemented lines according to the approved master plan.
The rate of passengers using urban railways in Hanoi is currently significantly lower than in other major cities in the region. Figures show that this rate is only 1% of the population compared to the rates in Singapore, Bangkok and Kuala Lumpur of 50%, 15% and 10% respectively.
Explaining this, Ms. Nguyen Thi Hong Van, Deputy Director, Valuation and Consulting Department, Savills Hanoi said: “The total length of the urban railway system in Hanoi is still limited, only 22 km has been put into use. This number is 1/10 compared to other cities, making travel and traffic connection for people not convenient.
In addition to the scale of operation, people's travel habits are also an important factor. Vietnamese people prefer to use personal vehicles, especially motorbikes. In Vietnam, the metro has only been in use for 3 years. Meanwhile, countries in the region have had it for 20-30 years, and in developed countries, this number is even up to 100 years.
In addition, the government’s policy on regulating personal vehicles in the past was not drastic. The policy of restricting personal vehicles to reduce congestion and pollution in urban areas was proposed more than 20 years ago and discussed many times, but no effective solution has been implemented.
On June 28, 2024, the Capital Law 2024 was passed by the National Assembly at the 7th Session. Accordingly, Hanoi will limit personal vehicles entering the city center to reduce traffic congestion and emissions through the application of traffic congestion reduction fees.
The impact of urban railway lines on real estate prices
Historical data shows that real estate sales and rental prices around metro stations enjoy better rates than other locations.
In Singapore, residents were willing to pay a premium of about 15% for apartments within 400m of a Circle Line station when the line opened in 2012. In Kuala Lumpur, the average apartment price (2017-2018) within 800m of a train station was 30% higher than the citywide average. In Bangkok, property prices near metro stations increased by 7%-21% depending on the distance to the station.
In Ho Chi Minh City, apartment prices along the urban railway line have continuously increased since the time of opening for sale with an average increase of 35%-70% depending on location, with some projects doubling in the period 2015-2023.
For example, Masteri Thao Dien apartment is located next to the urban railway connecting from the center to Thu Duc City, opened for sale since the end of 2014, in 2015 the price was from 35-39 million VND/m2, but now (Q2/2024) the secondary price has reached from 69-75 million VND/m2.
In Hanoi, the average price of apartments in Cau Giay district for segments within a 500m radius from the Cau Giay - Nhon urban railway stations increased by over 40% within 1 year (from Q3 2023 compared to Q3 2024).
“We also checked the price increase data in areas far from this urban railway line, and the apartment prices in the market due to the shortage of supply also pushed the average price increase by about 25%-35% depending on the location. That shows that the advantage of the urban railway station has also impacted the surrounding real estate prices to increase by 5%-15% higher than the general price increase,” said Ms. Nguyen Thi Hong Van.
Urban railway lines will contribute to increasing the value of real estate along its route. More importantly, the urban railway system helps to significantly improve the social life of the capital's residents. This public transport not only helps to reduce traffic accidents and traffic congestion, but also contributes to reducing environmental pollution thanks to running on electricity and saving travel costs for people.
Source: https://vov.vn/kinh-te/bat-dong-san/duong-sat-do-thi-tac-dong-nhu-the-nao-den-gia-bat-dong-san-khu-vuc-lan-can-post1124774.vov
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