Public transport and real estate: The rise of Transit Oriented Development

The inevitable trend of TOD

Many environmental problems have emerged due to the rise of urbanisation. Thus, many countries have shifted their focus to TOD to ease traffic pressure and ensure sustainable development.

Governments around the world have invested in transport infrastructure, especially the high-speed railway system. The TOD model is not merely an investment in the transport system, but it is also related to urban planning. It aims to optimise land use with the construction of high-density urban areas around traffic stations. Japan is also one of the leading countries in TOD development by reducing dependence on personal vehicles to ease congestion and protect the environment.

TOD model in Vietnam

In Vietnam, the evolution of public transportation systems such as subways and electric buses is shaping the real estate market in Hanoi and Ho Chi Minh City across the residential, retail and office space segments.

The recently revised Capital Law, passed by the National Assembly, permits investment in urban railway development in Hanoi according to TOD to ensure modernity and sustainability.

Le Chinh Truc, deputy head of Hanoi Urban Planning said that the development rate of public transport is set to be about 50 by 2035, and 60 per cent by 2045.

In Ho Chi Minh City, the municipal People's Committee has issued plans to implement TOD areas along metro lines to develop public transportation and attract investment.

Large investors catch up with the trend

"My family wants to find a green and open space to live but we are afraid of being too far from the downtown. After consideration, we choose projects located on major roads, which is convenient to commute to the downtown,” Thanh Tam, a citizen in Ho Chi Minh City, shared.

There is an increasing demand for green and airy living spaces near the downtown. In Ho Chi Minh City, the increase of immigration rate leads to infrastructure overload. According to data from the General Statistics Office in 2021, Ho Chi Minh City has the second highest immigration rate in the country at 25.4 per cent.

Recognising the potential of the TOD model in the future, many investors have built urban areas to seize opportunities, including Gamuda Land - a prestigious investor in the real estate sector. Gamuda Land is always at the forefront of the trends with flagship projects like The Meadow low-rise residential area in Binh Chanh or Artisan Park shophouse street in Binh Duong.

In recent years, Binh Duong has been a magnet to foreign direct investment in the Southern region, taken the lead in the urbanisation speed, as well as achieved the highest average income in the country.

Binh Chanh, a satellite urban area of Ho Chi Minh City, is also a potential locality that is highly appreciated by investors. As a gateway to the southwest of Ho Chi Minh City. Ho Chi Minh City, Binh Chanh, boasts many traffic projects under construction, such as Metro Line 3A (Ben Thanh - Tan Kien) with a total investment of more than VND67 trillion ($2.64 billion) or Metro Line 5 (Bay Hien Intersection - Saigon Bridge), commercial exploitation after 2032.

The Meadow project by Gamuda Land is located on Vinh Loc Street, an important road of Binh Chanh district

The Meadow project developed by Gamuda Land boasts a prime location on Vinh Loc Street, one of the important roads of Binh Chanh District. The project provides residents with easy access to neighbouring areas such as District 6, District 8, Binh Tan District, and Ho Chi Minh City’s downtown. The Meadow is situated in an area with a well-developed transportation system, with many major roads such as Vo Van Kiet Boulevard, Hanoi Highway, National Highway 1A, and Inner Ring Road. Thus, residents can easily commute to nearby areas as well as the downtown of Ho Chi Minh City. In addition, the project is located near metro stations and bus routes, providing a wide range of transportation options for residents.

Another project Artisan Park by Gamuda Land is located on the main boulevard of Binh Duong New City

Artisan Park is located right in front of Le Hoan Street, one of the main boulevards of Binh Duong City. Residents can easily access the international standard amenities such as a 75-hectare central park with ecological lake, Aeon Mall, Viet Hoa International School, Viet Duc University, Binh Duong General Hospital, as well as the Binh Duong administrative centre.

At the Gamuda Land Collection Expo event held on November 3, 2024, in Hanoi, real estate experts shared new and interesting perspectives on the Southern real estate market as well as the overall picture of Vietnam's real estate market from online data and in-depth research on consumer sentiment. By attending the event, brokers and investors have gained an understanding of the overall picture of the market as well as the most recent developments of price, supply-demand, and real estate investment opportunities in the southern market.

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