Ho Chi Minh City and Hanoi have similar land portions for transport to emerging regional cities but much lower than developed cities. Pressure on traffic infrastructure increases when income threshold US$3,000 – USD$10,000 per year, and this period also marks the fast upsurge ratio of private car ownership, following developing circle. The sales revenue of car increase averagely 35 percent per year in 5 recent years. In forecast, number of car will increase triple in 2025 in Hanoi and Ho Chi Minh city. Accompanied with the growth of population density and limited capacity for road expansion in the central area, the threat of traffic gridlock really emerges.
The car ownership booming does cause tension in working place’s parking lot. The parking fee in HCMC and Hanoi is among highest in regional emerging cities including Bangkok, Manila and Jakarta. However, the parking demand is hard to be fulfilled, as the profitable ratio of parking lot has lower return than other components, like office space. The disadvantage of private transport turns public one into the choice of future. HCMC and Hanoi now have the lowest share of using public transport in the region, and severe air pollution. The two cities have just come up with the first stage of city metro line by PPP, which is initial to Bangkok situation in 1990s.
Bangkok is accessed to be successful case study, which we can refer in collecting the socialized fund for public transport system investment, then solving with the city transport and air pollution. The maturity of public transport, particularly metro line could have great impact on the development of real estate market. The Transit –Oriented Development (TOD) could be a new approach, which can possibly lead the future market with segments including housing, office, retail, parking at the transit surroundings. This model has been applied in some regional countries and created remarkable increase in transit – oriented real estate value, for instance, China (10%), Hong Kong (32%) and Thailand (10%). The same status is expected to take place in HCMC and Hanoi with the first metro lines which will be activated by 2020. Nonetheless, the appreciation of property value price is supposed to be non-equitable and pretty higher at the out of the city spots.
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