Many investors are looking to buy or “hold” apartments near metro lines, but experts caution that “not every project in the vicinity will see price increases.”
Ms. Thanh Tam (District 10, Ho Chi Minh City) has some idle capital and wants to invest in an apartment to wait for price appreciation. However, apartments in the Thu Duc City area already have relatively high selling prices, and with limited investment funds, she chose to buy a new project soon to be launched in the first quarter, located in Di An City, near the Suoi Tien metro station (new Eastern bus station). This project is advertised as being on the metro line extending from Ho Chi Minh City to Binh Duong, capitalizing on future metro potential, with an expected average price of 2.3 billion VND for a 2-bedroom apartment.
Similarly, Mr. Binh, an investor in Thu Duc City, is also placing a deposit to reserve an apartment in a project advertised as being developed according to the TOD model (transit-oriented development model) near Binh Thai metro station. In 2021, this project launched with a price of only 52 million VND per square meter but received little attention due to its location being quite far from the city center. Currently, with the metro in operation, the developer is capitalizing on this heat, announcing a new selling price nearly 40% higher than 4 years ago.
“I’m buying for investment with the hope that house prices along the metro line will continue to increase in the next few years,” Mr. Binh shared.
Not only holding new inventory, but many investors are also persistently holding onto their existing real estate with the belief that prices will continue to rise. Ms. Bich Hanh (District 3) chose to keep her apartment near Phuoc Long station despite being offered a 15% premium compared to the purchase price in early 2023. According to Ms. Hanh, land plots around this area are scarce, and new project prices are also high, so there is potential for further price increases. “Many brokers inquire about buying the apartment, but few homeowners are willing to sell at this time, most want to hold out for further price increases,” Ms. Hanh said
Research data from Batdongsan website shows that in the second half of 2024, many projects along Metro Line 1 recorded a 10-60% increase in search demand, especially in the last months of the year as the metro prepared to operate. The highest growth in purchase demand fell on ongoing and upcoming projects, such as Eaton Park (Thu Duc City) increasing 22 times, Lumiere Riverside doubling, The Gio Riverside (located in Di An City, at metro station S2.1 extending to Binh Duong) tripling…
According to a report from CBRE Vietnam, in 2024, the secondary sale price of apartments along the metro line recorded a 15% increase compared to the same period. Over the past 8 years (since 2015), the average price of apartments around this infrastructure line has increased by 50-70%, with some projects increasing by up to 150%. According to DKRA Group, in 2024, the secondary sale price of apartments in projects along the metro line increased by 10-25% compared to the end of 2023, reflecting the advantage of transportation infrastructure.
Records from VnExpress show that within a radius of 2-7 km from the Ben Thanh-Suoi Tien metro line, there are currently nearly 80 apartment projects that have been and are about to be implemented. Among them, An Phu and Thao Dien stations mainly have secondary projects, while the Suoi Tien station (new Eastern bus station), Thu Duc station, and Binh Thai station have a concentration of new supply at more affordable prices.
Most projects preparing to launch near the Suoi Tien station, Binh Thai station, and the metro extension to Binh Duong are implementing communication campaigns that closely follow the advantage of being near the metro, capturing the heat and the psychology of buyers who prefer to invest based on infrastructure. In addition, developers are also capitalizing on the “metro effect” to sell at new prices, increasing by an average of 10-20% compared to previously implemented projects in the same area.
However, not every project near the metro has increased purchase demand and selling prices. Among the 60 projects surveyed by Batdongsan, 23 projects recorded a decrease in interest from 5-20%, and some projects even saw a 30-80% decrease in demand. This group mainly consists of projects with incomplete legal status, no pink book, slow construction progress, or involvement in controversies during implementation. Corresponding to the decrease in demand, more than 12 projects did not see the expected price growth, and some even decreased by 3-9%, with some projects decreasing by more than 30% compared to 2023.
Assessing the potential of real estate around the metro line, Mr. Vo Huynh Tuan Kiet, Director of Residential Market at CBRE, said that the trend of investing in real estate “following” infrastructure is not a new trend. The expansion of metro lines and ring roads will continue to stimulate the real estate market in Thu Duc City and satellite urban areas around the metro. Many new projects are being and will be implemented with new price levels increased compared to before.
However, investing in infrastructure is a long-term game, requiring strong capital, and not all investors can succeed. Metro projects often take many years to complete, so if you expect rapid price increases in the short term, it is very difficult and should not be invested.
In addition, before making a purchase, investors need to consider many factors such as: checking the planning of the area through which the metro line passes, including the specific location of the stations, route, and construction progress. Next is the legal status, which needs to be carefully reviewed to ensure that the real estate project has transparent legal status and has completed procedures and documents such as construction permits, land use right certificates, etc.
Sharing the same view, Mr. Dinh Minh Tuan, Director of Batdongsan in the Southern region, said that not every area near the metro line has the potential for price increases. If it is near the metro but not convenient to connect to other important traffic points, not only is it difficult to increase, but prices may also decrease. Real estate value will only increase in areas with synchronous social development such as the formation of urban areas and residential areas with full services and utilities including markets, hospitals, schools, parks… These are factors that investors need to consider carefully to ensure that the strategy of following infrastructure brings optimal efficiency.
Mr. Tuan suggested paying attention to projects within a radius of 2-3 km from the metro station. Some projects, although farther away, have good traffic connections or connect with other metro lines in the future. However, it is still necessary to carefully consider factors such as legal status and handover progress. In addition, it is necessary to compare the price of real estate near the metro with neighboring areas to determine whether it has reflected the actual value, avoiding buying in during a hot market period because the potential may be limited and the risk is high.
According to a leader of a real estate business in Ho Chi Minh City, the recent wave of rising house prices along the metro, besides increasing with real value, also has many cases of riding the wave. Some projects near the metro station that are reported to cause noise pollution but still have prices increased by 50-60% are very unreasonable, not excluding the element of virtual increase.
In addition, this person also said that the demand for buying houses and the increase in real estate prices around the metro are also affected by psychology. The first appearance and operation of the metro create an effect of excitement and stimulate interest and discussion. Once the metro system becomes popular and other lines are completed, this psychology may cool down, and the wave of rising house prices “following” the metro will also end
