Transport infrastructure creates momentum to promote sustainable real estate market development

Completed transport infrastructure not only meets travel needs, but also becomes a solution to shape urban space, creating momentum for housing projects, satellite urban areas to develop and increase land value.

Motivation from TOD model

According to Associate Professor, Dr. Architect Nguyen Vu Phuong, Deputy Director of the Academy of Strategy and Training of Construction Officials (Ministry of Construction), the current TOD (Transit-Oriented Development) urban development models in many countries such as the United States, France, Japan, China... all demonstrate a two-way relationship: Modern infrastructure promotes real estate development, while real estate creates resources for reinvestment in infrastructure.

Transport infrastructure creates momentum to promote sustainable real estate market development.

In Vietnam, the rapid urbanization rate is posing an urgent need for transport infrastructure associated with real estate, in the context of limited budget resources. The process of merging localities and implementing a two-tier government model raises the issue of a new approach based on functional areas, linking transport planning with urban development and the real estate market. This approach helps to effectively exploit land value, ensure housing equity and suitability with people's ability to pay, through a reasonable allocation of land funds for commercial housing, social housing (NOXH) and ecological real estate.

According to the review of the Ministry of Construction, up to now, Vietnam's expressway network has expanded rapidly from about 90 km (2010) to 1,700 km (2024), expected to reach 3,000 km by 2025. The expressway system has created a strong boost for real estate, especially satellite urban areas, industrial - logistics zones, resort real estate and increased land prices along belt routes and expressways. In addition, urban railways, the core of TOD and real estate development, such as in Hanoi, have exploited 2 routes (Cat Linh - Ha Dong, Nhon - Hanoi Railway Station), Ho Chi Minh City has operated metro line No. 1 Ben Thanh - Suoi Tien, it is expected that by 2035, these two large cities will have more than 600 km of urban railway. This is the driving force for spatial restructuring, forming satellite urban areas and real estate along the TOD corridor.

In addition, a series of airport and seaport projects are being rapidly completed such as: Long Thanh International Airport Project, Cai Mep - Thi Vai sea cluster, Lach Huyen... are becoming important international gateways, promoting logistics, industry and service real estate - resorts, creating a strong "push" for the real estate market in the direction of TOD, satellite cities and new economic corridors.

However, Vietnam's infrastructure still faces major challenges of lack of capital, institutional limitations, resources, and implementation capacity; the real estate market often has a "virtual fever" due to expectations, speculation, and ineffective market management; many urban areas are developed when traffic is not yet complete, leading to overload and lack of connectivity; planning is not synchronized; while essential segments such as social housing, worker housing, and student dormitories have not received due attention... This reality poses an urgent need for a comprehensive strategy, both ensuring capital balance for infrastructure development and closely linking with urban planning and orientation for sustainable real estate market development.

Orientation for sustainable real estate market development

Real estate experts believe that, based on the experience of infrastructure development with successful real estate markets in many countries, the development of the TOD model both promotes the economy, solves housing problems and controls land prices, and Vietnam can apply it based on appropriate adjustments to institutional conditions, resources and characteristics of each urban area. This is an effective financial mechanism that can create capital for infrastructure, exploit land value around metro and railways and create revenue for developing social housing, student dormitories, worker housing, etc.

Associate Professor, Dr. Architect Nguyen Vu Phuong commented that in order to maximize the role of transport infrastructure in the real estate market, Vietnam needs to deploy a system of orientations and synchronous solutions, focusing on integrated planning of transport and land use, ensuring TOD becomes the focus around metro, BRT, beltway, and highway. Within the scope of public transport access, it is necessary to harmoniously arrange housing types: commercial housing, social housing, worker housing and student dormitories.

In addition, synchronously develop commercial service areas to balance supply and demand, promote social justice, civilization, and modernity, especially allocating resources to develop social housing, affordable housing, worker housing, student dormitories, and direct connection to metro/BRT, because this is the group that will use public transport the most; at the same time, apply the mechanism of collecting added value from land, land auctions, urban development funds, exploiting land funds around stations, and reinvesting in infrastructure.

In addition, in large cities developing according to the compressed urban model, 15-minute urban model, reducing dependence on personal vehicles, promoting the use of public transport, improving the quality of life and increasing the application of digital technology in managing traffic data to make planning information, land prices, projects transparent...

Through research, the Ministry of Construction is focusing on building and soon completing TOD policies in a sustainable and equitable direction. In particular, it stipulates the minimum rate of social housing in TOD, requiring investors to reserve at least 20-30% of land fund or floor area in TOD projects for social housing, worker housing and student dormitories, ensuring fairness and affordability; piloting a model of metro operating enterprises participating in exploiting real estate around stations and allocating a portion of revenue to reinvest in infrastructure and develop social housing; coordinating with local authorities to proactively plan and maintain land funds at key intersections, to avoid speculation, control land prices, and ensure reasonable arrangement of affordable housing...

"Transportation infrastructure is not only roads and bridges, but also a tool to shape urban areas and regulate the real estate market. Effective application of the TOD model will become a tool to stabilize housing prices and ensure social equity and access to suitable housing for millions of people," Associate Professor, Dr. Architect Nguyen Vu Phuong shared.

Source: https://baotintuc.vn/kinh-te/ha-tang-giao-thong-tao-dong-luc-thuc-day-thi-truong-bat-dong-san-phat-trien-ben-vung-20250929100652183.htm