Ben Thanh – Suoi Tien Metro Line 1 To Open in 2020 After 13 Years of Construction
After years of slow-paced construction due to delayed payment for contractors, unresolved documents and other legal files, the construction Ben Thanh – Suoi Tien Metro Line 1 rushes construction to finally operate in 2020 after 13 years.
Bui Xuan Cuong, Ho Chi Minh City Urban Railway Management Board’s newly appointed head, said that after the Lunar New Year celebration, construction will be at its highest intensity. A goal has been set that within this year, the construction should reach about 80% of the project.
Initially, the Ben Thanh-Siou Tien metro line project suffered from a lack of up to VND 20.5 trillion for its continued development. About VND 28 trillion is further needed to finalise the project by 2020. VOV Online reported that the Ministry of Planning and Investment have only allocated VND 7.5 trillion for the project. However, the city has advanced the budget to pay a total of VND 2.3 trillion to ensure progress.
Started in 2006, the Benh Thanh – Suoi Tien metro line project aimed to be the first ever metro line to connect these two areas. The Line 1 consists of 14 stations spanning at 19.7 kilometres with 2.6 kilometres underground and 17.1 kilometres elevated sections.
The introduction of this metro line will see the central districts of HCMC linked directly with the eastern parts of the city such as District 2, District 9 and Thu Duc District.
Despite the projects expected to launch in 2018, it only managed to reach about 62% of completion at the end of the year.
Effect on the Vietnam Real Estate Market
According to the deputy director Tran Nhu Trung of Savills Hanoi, the ongoing infrastructure projects would help transcend the socio-economic environment. He said that these infrastructures would further attract investments, create a new transport culture, and will disrupt the daily routine of urban residents.
“Once put into operation, subways, sky trains and express buses will bring a new look to cities. In addition, this transport infrastructure will have obvious impacts on the real estate market, house sales and shopping centres,” Trung said.
Aside from that, researches have shown the close relationship between real estate and housing prices in relation to transportation.
Participating in multiple types of research of Metro projects in Bangkok and Singapore, Professor Phan Van Truong said that metros serve as an “efficient medicine” for Vietnam’s urban transportation problems, as quoted from Vietnam Investment Review.
In a nutshell, Truong points out that a railway system would help Vietnam property investments regain their capital. Both real estate properties and people will benefit from the creation of more transportation infrastructures.
In another research conducted in 2008, Shanghai residential prices changed every 100 metres closer to the subway when using the hedonic price model.
The first to benefit from the metro line project was Thao Dien Pearl condominium complex in HCMC District 2. Le Khac Huynh, deputy director of Ho Chi Minh Management Authority for Urban Railways said that the link between properties for sale and railways increases the project’s value and competitiveness.
Now with the Ben Thanh – Suoi Tien metro project nearing operation, other projects near its stations should expect a relatively high increase in prices.
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