Ring Road – Leverage for the real estate market
The ring road is the key infrastructure to create a driving force for regional economic development. With the route Ring 3, Ho Chi Minh City’s new growth spurt has officially been activated, promising to bring many advantages and potentials to the surrounding satellite cities.
Formation of a multipolar city around the ring road
Multipolar development is both a classic model and a preeminent path for major cities around the world to expand urban space, reduce population pressure, create new jobs, and increase investment opportunities. In particular, the key to developing new satellite and central urban areas lies in the development of ring roads.
According to Prof. Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, the ring roads not only reduce the pressure of traffic in the inner city, but also serve as a lever to promote urban development, industry, trade and service to create resources for investment and development for the future. Accompanying the development of belt projects is a large-scale infrastructure system, vibrant economic and financial centers…
Typically, London, the ring road M25 running around the capital is the busiest and most important road in England, also the largest ring road in Europe.
In Vietnam, Hanoi has aimed to build affiliated cities in the northern districts (Dong Anh, Me Linh, Soc Son) and the west (Hoa Lac, Xuan Mai) through ring road 4 – the important route important for economic and social development in the Capital region, is expected to start construction in 2023.
In Paris (France), the boulevard Périph is more than 35km long, acting as a lifeline connecting cities outside the capital.’
In Berlin (Germany), the 10th Ring Line has formed busy and crowded urban areas, connecting to the airport and important train lines.
Particularly in Ho Chi Minh City, Ring Road 3 connecting Ho Chi Minh City – Dong Nai – Binh Duong – Long An will start simultaneously in this June and July, promising to create a driving force for economic growth for the entire Southeast region.
Huge potential for the real estate market
Transport infrastructure is one of the important factors promoting urbanization and the growth of the real estate market. Therefore, in all areas where the ring road passes, the market has grown significantly.
In many countries, the planning of the ring road has made real estate values jump. In Singapore, projects along the ring road around the city’s edge recorded an 11% price increase after the road came into operation. Particularly, the real estate market around the 3rd ring of Bangkok (Thailand) has increased by 50% compared to before the planning.
Commenting on the impact of the Ring Road 3 (HCMC) on the real estate market, Mr. Tran Quoc Thai, Director of the Department of Urban Development, Ministry of Construction said that the general price level will fluctuate in the following direction more positively. Through local and international practice, the price increase of 11%-12% is minimal.
In addition, according to experts, in the next 5–10 years, next to real estate projects in Thu Duc City, there will be a series of large projects such as closed belt 2, ring 4, Long Thanh airport. … With the potential to add value in the long term, this area will be a magnet to attract large projects. However, investors also need to be alert to prioritize the selection of projects with complete legality, good planning and regional connectivity with full facilities to avoid the situation of “spending money and only getting worse” when following the best practices. “Bait-and-switch” projects eat according to infrastructure.
Source: SGGP Online