Sharing his perspective on this topic, the General Director of Colliers Vietnam, said that the newly opened Cat Linh – Ha Dong metro line is one of the best recent news for the Hanoi urban transport system. At the same time, the operation of the metro line also brings a lot of impact to the real estate market along the area thanks to the convenience of people’s movement.
In fact, it’s not surprising that infrastructure projects boost real estate prices in neighboring areas. In Ho Chi Minh City, after nearly 10 years from the time of construction until now, although it has not been put into operation with many “missing appointments”, the metro line Ben Thanh – Suoi Tien (metro No. 1) has being surrounded by a wave of real estate investment, from housing projects to busy commercial centers.
From 2016 until now, there have been more than 30 real estate projects developed along this metro line. The selling price of real estate projects in the districts where this metro line passes in the period 2012-2016 increased sharply from about 150-200% compared to other areas. Up to now, existing projects located along the route have also increased by 15-50% compared to the original selling price.
Similarly, in large urban areas of developing countries also show growth in real estate prices around the new traffic axis. In India, the subway system has caused land prices to increase by 15-20% within 500m after the system comes into operation. Besides, reducing costs, commuting time and improving job opportunities also helps to increase the price of commercial real estate such as offices and retail by up to 20-25%.
The implementation of the metro corridor directly affects the real estate sector because it increases land values, changes land use and population density along the metro line.
In addition, public transport systems such as bullet trains and monorails contribute significantly to solving traffic problems. As a result, projects planned around the neighborhood see urban real estate values increase, as consumers are willing to pay more for convenience.
According to this expert, traffic and connectivity is one of the most important factors in choosing residential and commercial real estate, especially at a time when new urban areas like Hanoi are facing challenges with the problem of population growth, traffic congestion and air pollution.
Cat Linh – Ha Dong metro line operates from Cat Linh station to Yen Nghia station with a length of 13.05 km, including 12 stations on the route: Cat Linh – La Thanh – Thai Ha – Lang – National University – belt 3 – Thanh Xuan – Ha Dong bus station – Ha Dong center – La Khe – Van Khe – New Ha Dong bus station and depot in Ba La.
According to a survey by Colliers, currently on this road, there are more than 100 real estate projects that have been developed and are being developed. Many projects that seem to have been “forgotten” by the market for a long time are also attracting attention. Interest has returned thanks to the start of this project.
Therefore, putting the Cat Linh – Ha Dong metro line into operation will be a big boost to the value of the real estate projects in the area, contributing to creating a more modern face for the city.