TOD (Transit Oriented Development) - a model that takes the development orientation of public transport systems as the basis for urban development planning will be the future development of the real estate market.
TOD (Transit Oriented Development) - a model that takes the development orientation of public transport systems as the basis for urban development planning will be the future development of the real estate market.
Infrastructure breakthroughs help increase the value and liquidity of TOD projects, which will support the real estate market.
According to CBRE, TOD (Transit Oriented Development) is an urban development model based on public transport systems, which has become a trend in the world. With rapid urbanization, many environmental challenges have emerged, causing countries to focus on urban development according to public transport orientation (TOD) to reduce traffic pressure and ensure sustainable development.
The TOD model is not simply about investing in the transportation system but also involves urban planning, with the goal of optimizing land use and building high-density urban areas around transportation stations. Metro Vancouver, British Columbia is an example where large-scale complex TOD projects converge enough to form a “closed urban area” - a city within a city.
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| TOD model is becoming a new trend in the real estate market. (Illustration photo) |
Stockholm, Sweden is considered a successful city with the TOD model when applying the principles of this model to the maximum. Sustainable urban development around the public transportation system, with a high integration between housing, commerce and green space. This city has become one of the world's leading sustainable living areas, with reduced energy and water consumption, increased recycling rates, and improved quality of life.
Japan is also one of the leading countries in TOD development, emphasizing reducing dependence on personal vehicles to reduce congestion and protect the environment. Closer to Vietnam is an example of an effective TOD model in Singapore. This island nation has integrated urban transport development with spatial design and planning, forming a cluster of satellite urban areas surrounding the central core, with a railway network connecting these urban areas to industrial zones and the city center.
With its potential in the future, the TOD model has opened up many opportunities for businesses to invest in building projects, urban areas... In particular, the trend of investing in real estate development based on infrastructure is not new but will be a driving force for Vietnamese real estate businesses. Because, the breakthrough in infrastructure is the launching pad to increase the value and liquidity of TOD projects thanks to the developed transport infrastructure network.
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| The TOD model promotes Vietnamese real estate businesses to develop new breakthroughs in investing in large-scale projects and urban areas, etc. |
The TOD model has encouraged real estate businesses to buy back land on both sides of the road and develop large-scale projects. Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), said that exploiting land on both sides of newly opened roads or at stations of Metro lines creates a transparent business environment in auctions, attracting investors, and the city can recover the money spent on infrastructure investment, thereby reinvesting in other projects. From here, the market will receive many new sources of supply from projects with clean legal documents.
Mr. Chau assessed that the breakthrough in infrastructure that helps increase the value and liquidity of TOD projects will be a boost for the real estate market in the new growth phase. Observing the reality in the market, it can be seen that currently, more and more large projects are being developed according to the TOD model. Large investors in Hanoi and Ho Chi Minh City, who used to send out many messages about technology and green real estate, are now switching to communication associated with TOD when major traffic routes and metros are continuously put into operation.
Along with the two major markets, projects in cities with strong infrastructure development are also considering TOD as a growth driver for real estate. Can Tho City is also a typical example that has been facilitated to apply the TOD model when recently, KITA Airport City Urban Area was developed by KITA Group according to the TOD (Transit Oriented Development) model, taking Can Tho International Airport and the transportation system connecting to localities in the Mekong Delta region as the development center, promising to create a modern residential community, a vibrant airport urban area in the near future.
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| KITA Airport City developed by KITA Group has successfully applied the TOD model. |
According to the developer of KITA Airport City project - KITA Group, the idea of developing this project according to the TOD model is close to the general trend of developed countries.
Located 3 km from Can Tho International Airport, the urban area is systematically planned with a total area of over 150 hectares with full functional subdivisions such as residential, commercial, cultural, entertainment, administrative, medical, educational areas...
Taking Can Tho International Airport as the main transportation hub with a capacity of serving up to approximately 5 million passengers per year, along with the strong movement of Can Tho's traffic infrastructure in recent times, KITA Airport City is oriented to develop as a population concentration point, from here continuing to form a traffic and urban system connecting and spreading to Can Tho - Mekong Delta - Ho Chi Minh City.
Evaluating the TOD model, experts believe that TOD is both a solution to help implement modern urban planning and improve the quality of life for people. Along with the metro system, a series of consecutive projects will help raise the stature of the area, the value of nearby real estate will establish a new value level. Existing projects along the route also increase from 20 - 50% compared to the initial selling price, the potential for rapid price increase and the benefits of transportation and commerce continue to attract smart investors.
Source: https://baodautu.vn/batdongsan/mo-hinh-tod-luc-day-cho-bat-dong-san-tang-toc-d232414.html
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