After Metro Line 1 officially operated, rental space around stations attracted customers, and real estate prices also increased rapidly.
These days, the bustling atmosphere along the metro lines in Ho Chi Minh City is becoming more and more evident. Near Thao Dien station, Ms. Hong, the owner of a grocery store, happily shared: "The new store is about to open, the other side just signed a lease contract, the rent has also increased. I don't know how the business will be, but many people are asking to rent the space."
Price increases every day
Surveying along Vo Nguyen Giap Street, the section connecting Thao Dien and An Phu stations, the excitement of the real estate market becomes evident, especially in the segment of leasing premises and food and shopping services. Many restaurants, such as Warning Zone with an area of up to thousands of square meters, are preparing to open. Nearby, a Korean restaurant is also decorating and hanging a "coming soon" sign.
Transactions at projects along Metro Line 1 are showing significant improvement.
Posing as a customer needing to rent a space, we contacted a landlord who posted a sign for rent of nearly 1,000 square meters in this area and was quoted a price of 450 million VND/month, no discount, even though the space was only a ground-floor house. Similarly, an office building near Thao Dien station that is under construction is also being rented for up to 500 million VND/month.
Ms. Nga, a real estate broker in Thu Duc City, said that recently the number of people asking to rent premises has increased dramatically. Premises that have been vacant for many years now have tenants and the rental price has not only not decreased but also increased. Some investors have taken the lead in this trend, building a series of buildings with metro-related names such as Metro Tower, More N1 or EBM Building. These buildings, located within a radius of a few dozen to 200 meters from the stations, are attracting tenants thanks to the advantage of being close to the metro.
In Binh Thanh District, the area along the foot of Saigon Bridge, near Tan Cang Station - one of the major stations that plays a role in connecting Metro Line 1 (Ben Thanh - Suoi Tien) and Metro Line 5 in the future - also witnessed similar attraction. The General Director of a real estate company boasted of his luck in renting an office in the area for 65 million VND/month since last year. Currently, the rental price of premises in surrounding buildings has begun to increase sharply.
According to data from Batdongsan.com.vn, apartment prices in areas near the metro have also increased. For example, the Bcons Suoi Tien project recorded an increase of more than 8%, with the average price currently around VND34 million/m² for the affordable segment.
CBRE Vietnam believes that the operation of Metro Line 1 will open up great opportunities for the development of the real estate market in the East of Ho Chi Minh City. Many prominent projects located along the stations of Metro Line 1 have been attracting attention, such as Grand Marina Saigon by Masterise Homes near Ba Son station, Thao Dien Green in the Thao Dien station area and Eaton Park by Gamuda Land at An Phu station.
At Rach Chiec station area, Masterise Homes’ Global City project is expected to become a highlight. Meanwhile, the High-Tech Park station area stands out with the Vinhomes Grand Park project developed by Vinhomes. Further away, the Ho Chi Minh City National University station area is attracting attention thanks to Son Kim Land’s The 9 Stellar project.
Need government regulation
Mr. Vo Hong Thang, Deputy General Director of DKRA Company, said that according to data from DKRA, there are currently more than 40 large real estate projects located along Metro Line 1. Since Metro Line 1 was in the testing phase, apartment prices in these areas have increased by an average of 30% to 70% compared to the time of opening for sale. In particular, there are projects that have doubled in price during the period 2015 - 2024.
For example, in the area near An Phu station, apartment prices in the period of 2014 - 2015 only fluctuated between 28 - 36 million VND/m2, but now the transaction price has reached 70 - 120 million VND/m2. Not only the selling price, the rental price of apartments along Metro Line 1 has also increased significantly. Specifically, a 2-bedroom apartment in the old District 2 has a rental price of 17 - 29 million VND/month, while in the old Districts 9 and Thu Duc, the price fluctuates between 9 - 11 million VND/month, an increase of 5% - 7% compared to the same period last year. Notably, in some high-end projects in An Phu ward, the increase has exceeded 10%.
According to Mr. Thang, in the near future, when the demand for public transport increases, gradually replacing personal vehicles, people, especially those working and studying in the central area, will tend to choose to live near the metro for convenient travel. This will be an important factor promoting the selling price and rental price of real estate types such as apartments, townhouses and serviced apartments along the metro line.
Dr. Pham Tran Hai, Ho Chi Minh City Institute for Economic Development Research, commented that when the metro line is operational, real estate around this area will spontaneously develop according to the TOD model (transport-oriented development), with or without government intervention. However, if the government participates in regulation, socio-economic efficiency will be optimized, helping to exploit public space and utilities.
In the absence of management, TOD can overload infrastructure, leading to unfair benefits. "The solution is to apply impact fee policies and regulate VAT on both public and private land, as many countries have done. In addition, it is necessary to complete the legal corridor to ensure sustainable and effective development of real estate around metro lines," the expert noted.
Office rentals are also flourishing.
Metro Line 1’s operation has also created a great attraction for the office leasing market. Office buildings near the station have recorded a significant increase in rental demand, as many people working here expect the convenience that the metro brings. This has contributed to promoting positive changes in the commercial real estate market in Ho Chi Minh City.
Source: https://nld.com.vn/mat-bang-can-ho-nhon-nhip-theo-metro-so-1-196241230205104259.htm
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