Prices of apartments along HCMC’s metro line rose by 15-40% in 2024 as its expected benefits drove up demand.
Two weeks ago Minh Toan bought a two-bedroom apartment 800 meters away from the Ben Thanh-Suoi Tien metro line, but with much regret since its price had gone up by 16% since the beginning of 2024.
“I should have bought it earlier. But I buy now with expectations of further increases now that the metro line has begun operation.”
The house cost him VND71 million (US$2,800) per square meter as against VND61 million in January last year.
The price has gone up by 45% in the four years since the apartments first hit the market.
Last month Phuong Nga sold a two-bedroom apartment around 500 meters from a metro station for VND85 million per square meter.
She had bought it for VND53 million in 2020, meaning she earned a 65% profit.
The apartment market alongside the metro is now bustling after it began commercial operation on Dec. 22.
The 20-kilometer line with 14 stations has over 40 property projects on its sides, most of them in the high-end segment with prices starting at VND70 million per square meter.
Prices there have increased by 16-20% annually, according to property consultancy Avison Young.
Data on property listing platform Batdongsan shows prices have risen by 30-90% since 2019.
“Transportation infrastructure plays a pivotal role in urban development and property value appreciation,” Vo Hong Thang, deputy CEO of another property consultancy, DKRA Group, said.
“The metro enhances connectivity, reduces traffic congestion and offers safer commuting options. These factors drove up property prices along its route.”
Troy Griffiths, deputy managing director of Savills Vietnam, predicted luxury properties along the Hanoi Highway and key stations would see prices rise by 10-15% this year.
Dinh Minh Tuan, southern regional director of Batdongsan, said developers’ focus on the high-end segment alongside the metro line in recent year has pushed average prices up.
A combination of several factors like the metro line, improved infrastructure and the surfeit of high-end projects has pushed apartment projects close to the rail route into the spotlight, he added.
