• Ha Noi currently has two metro lines in operation, with the goal of completing 97 km by 2030 and expanding to 301 km by 2035.
• The usage rate of the metro in Ha Noi is lower compared to other countries in the region, primarily due to the limited system and the population's habit of using personal vehicles.
• The metro line will have an impact on the sale prices and rental rates of properties surrounding the stations.
• The metro system not only increases property values along its route but also improves social life, reduces traffic congestion, environmental pollution, and transportation costs for Ha Noi's residents.

CURRENT METRO LINES IN HA NOI

Ha Noi currently has two metro lines in operation. The first is Line 2A, from Cat Linh Station to Yen Nghia Station, which opened to service in November 2021, having a total distance of 13 km. This line has 12 stations: Cat Linh, La Thanh, Thai Ha, Lang, Thuong Dinh, Ring Road 3, Phung Khoang, Van Quan, Ha Dong, La Khe, Van Khe, and Yen Nghia. The frequency is eight trains/hour/direction, with each train carrying 960 passengers, operating at a speed of 35 km/h and a maximum speed of 80 km/h. In 2023, the average number of daily passengers was about 29,600.

The second is Line 3 (Phase 1), from Nhon Station to Ha Noi Station, which operates on an elevated section between Nhon and Cau Giay. This line began operation in August 2024, with a total length of 8.5 km and 12 stations: Nhon (S1), Minh Khai (S2), Phu Dien (S3), Cau Dien (S4), Le Duc Tho (S5), National University (S6), Chua Ha (S7), Cau Giay (S8). The line operates at eight trains/hour/direction, carrying 920 passengers per train, with an operational speed of 35 km/h and a maximum speed of 80 km/h. During the initial free fare period, the line saw approximately 60,000 passengers daily. This number is expected to drop once the free period ends.

By 2030, the city aims to complete 97 km of metro lines, including Line 2, the remaining sections of Line 3, and Line 5. By 2035, the city will continue to operate 301 km of railway, out of a total of 398 km, which will account for 76% of the total rail length. This includes Lines 1, 2 (extended to Soc Son), 2A (extended to Xuan Mai), 3 (extended to Son Tay), 4, 6, 7, 8, and a line connecting satellite urban areas. By 2045, the city will complete 200 km of metro lines as part of the adjusted and added routes under the approved master plan.

COMPARISON OF METRO USAGE IN HA NOI AND REGIONAL COUNTRIES

The percentage of people using the metro in Ha Noi is currently much lower compared to major cities in the region. Data shows that metro usage in Ha Noi is only 1% of the population, while in Singapore, Bangkok, and Kuala Lumpur, the figures are 50%, 15%, and 10%, respectively.

Ms Nguyen Thi Hong Van, Associate Director of the Advisory Services Department at Savills Ha Noi explained: “Ha Noi's metro system is still limited in length, with only 22 km currently in use. This is only one-tenth compared to other cities, making travel and transport connections inconvenient for the public.

In addition to the scale of the system, people's habits play an important role. Vietnamese people prefer to use personal vehicles, especially motorcycles. Metro use in Viet Nam has only been in place for three years, while in other regional countries, it has been established for 20-30 years, and in developed countries, up to 100 years.”.

Moreover, the government has not been proactive in regulating personal vehicles. The idea of reducing personal cars to alleviate congestion and pollution in cities has been discussed for over 20 years but has yet to be effectively implemented. 

In the future, experts at Savills see positive signs for the development of public transportation in Ha Noi. Specifically, on 28 June 2024, the 2024 Capital Law was passed by the National Assembly, which aims to reduce personal vehicles in the city centre to minimise traffic congestion and emissions through congestion charges. 

Currently, metro users in Viet Nam and regional countries are mainly office workers and students, accounting for 90% of total metro passengers. In Ha Noi, 47% of passengers are office workers, 45% are students, and the remaining 8% use the service for other purposes. In Singapore, 50% of passengers are office workers, and 43% are students, while in Kuala Lumpur, 36% are office workers, and 58% are students. 

The age group using the metro is primarily young and middle-aged people. In Singapore, the age groups using public transportation are 18-24, 25-34, and 35-44, making up 35%, 40%, and 12%, respectively. In Bangkok, the 21-30, 31-40, and 41-50 age groups make up 25%, 38%, and 18% of metro users, respectively. In Kuala Lumpur, the majority of users fall into the 21-30 and 31-40 age groups, accounting for 53% and 37% of passengers.

THE IMPACT OF METRO LINES ON REAL ESTATE PRICES

Historical data shows that property prices for both sales and rentals around metro stations tend to increase more significantly than in other areas.

In Singapore, property prices within 400 meters of the Circle Line stations increased by about 15% once the line became operational in 2012. In Kuala Lumpur, apartment prices within an 800-meter radius of train stations (2017-2018) were 30% higher than the city-wide average. In Bangkok, property prices near metro stations increased by 7%-21%, depending on the distance to the station.

In Ho Chi Minh City, the prices of apartments along the metro line have continuously increased since sales began, with an average increase of 35%-70% depending on location. Notably, the Masteri Thao Dien apartment complex, located near the metro line connecting the centre to Thu Duc City, saw prices rise from 35-39 million VND/m2 in 2015 to 69-75 million VND/m2 in Q2/2024.   

In Ha Noi, the average price of apartments in Cau Giay District within 500 meters of the Cau Giay-Nhon metro line increased by over 40% from Q3/2023 to Q3/2024. In areas farther from the metro, the average increase was about 25%-35%, driven by limited supply. This indicates that the presence of metro stations contributes to an increase in property prices by 5%-15% higher than the general market increase. 

MACROECONOMIC IMPACT OF METRO LINES

The metro line will significantly increase the value of real estate along its route. More importantly, the metro system greatly improves the quality of life for the capital’s residents. This public transportation not only reduces traffic accidents and congestion but also helps reduce environmental pollution, as it runs on electricity, and lowers transportation costs for people.

Trains are considered safer than personal vehicles. In the U.S., between 2000-2009, the traffic fatality rate for trains was much lower compared to other vehicles (per billion miles travelled). Specifically, the death toll for trains was 0.24 per billion miles, compared to 213 for motorcycles, seven for cars, and three for boats. In the European Union, the fatality rate for trains was 0.09, significantly lower than buses, cars, and motorcycles, which had rates of 0.2, 2.5, and 36 per billion kilometres travelled, respectively. 

The cost of using the metro is very affordable. In Ha Noi, the fare is VND 8,000/trip, significantly lower than GrabBike or GrabCar services (about VND 12,000 and VND 26,000 for the first 2 km, respectively, and VND 4,300 and VND 10,000 for each additional km). The monthly metro fare is only VND 200,000, cheaper than VND 2,000,000/month for fuel and car parking, making it more suitable for the average income of Vietnamese workers, which is around VND 7.5 million.