Expect to see a surge in real estate activities in HCMC within the next 5 years when the 2 Metro Lines are completed and supplemented by its first Bus Rapid Transit Route.
Back in 1986, the Doi Moi Economic Reforms liberalised the stagnant post-war economy of Vietnam and transformed it into a market-driven capitalist system. Vietnam never looked back since, growing rapidly yet sustainably on the economic front. Experts have rated Vietnam’s economic growth second only to China in the world.
With sustainable economic growth (increasing year-on-year GDP), Vietnam experienced a high urbanisation rate of about 34% in 2015 (year-to-date). This placed a huge strain on the existing traffic infrastructure in urban areas; narrow roads and lack of efficient public transportation have led to constant traffic congestions. Experts have established that for Vietnam to really achieve its potential as an economic powerhouse in the ASEAN region, it has to improve its infrastructure.
Since 2012, several initiatives were taken by the Government aiming to ramp up its infrastructure improvements; there was the Metro Line 1 breaking ground in 2012; Metro Line 2 construction starting in 2015 and Bus Rapid Transit route planned for 2017 ground-breaking. These improvements are expected to affect the real estate market in Ho Chi Minh City positively, giving rise to new opportunities.
Metro Line 1 ready by 2020?
Costing USD1.1 billion with a network length of 19.7km, the Metro Line 1 starts from near Ben Thanh Market (District 1), extending to Saigon Bridge (Binh Thanh District) before ending at Suoi Tien Park (District 9). Line 1 will be serviced by 14 stations, with 3 stations in the city centre (2.6km) being underground and the other stations to the east of the Saigon River on an elevated platform. The expected operationally ready date of the project is scheduled for 2020.
Aidan Wee is the General Director of Somot-VN Co Ltd, a boutique real estate brokerage for foreigners in Vietnam as well as a Licensed Property Salesperson (accredited by the Council of Estate Agencies in Singapore). He can be reached at (+65) 9345 8633 or email@example.com