TOD (Transit Oriented Development) – Railway linked real estate trend

In the context of modern urban infrastructure, Transit Oriented Development (TOD) has emerged as a global trend and is gaining strong momentum in Vietnam. TOD refers to urban development centered around public transport hubs, particularly metro and railway systems. This model not only optimizes land use and reduces congestion but also opens a new era for real estate markets connected with railway infrastructure.

What is TOD and Why is it Important?

Definition

• • TOD is the concentration of residential, commercial, and service developments around metro and railway stations.
    
  • The ideal walkable radius 400–800 meters from the station.
    
  • TOD creates compact urban ecosystems, reducing dependency on private vehicles.
    

Significance

• • Reduces private traffic and lowers emissions.
    
  • Enhances land use efficiency in dense urban areas.
    
  • Stimulates the growth of commercial, residential, and office properties near stations.
    

Global TOD Practices

• • Japan: Successful TOD with Shinkansen and Tokyo metro, where stations are linked with malls, offices, and housing.
    
  • Singapore: MRT integrated into mixed-use high-rise complexes.
    
  • China: TOD adopted as a national urban strategy for smart, sustainable cities.
    

See more: Vietnam Industrial Real Estate: Golden opportunity in the global FDI investment wave

TOD Opportunities in Vietnam

Hanoi & Ho Chi Minh City

• • Metro projects under construction will be TOD nuclei.
    
  • Studies show property near metro stations rises 20–30% in value compared to other areas.
    
  • Locations like Cat Linh, Nhon, Ben Thanh, Thu Thiem will become new urban centers.
    

North–South High-Speed Rail

• • Major hubs (Hanoi, Da Nang, Nha Trang, Ho Chi Minh City) can evolve into national TOD centers.
    
  • Creates economic corridors aligned with HSR.
    

Economic Benefits

• • Attracts FDI into urban real estate.
    
  • Develops large-scale mixed-use complexes.
    

Expands government revenues through land value capture and taxation.

Challenges in TOD Development

• • Legal framework: Vietnam lacks clear TOD policies; integration of transport–urban planning is required.
    
  • Financing: TOD demands huge investment; PPP and private sector participation are crucial.
    
  • Urban planning: Needs long-term vision to avoid fragmented development.
    
  • Infrastructure integration: Seamless links between metro, bus, parking, and pedestrian access.

TOD is the inevitable trend of urban development linked with railways. With metro lines in Hanoi and Ho Chi Minh City and the North–South HSR, Vietnam has a golden opportunity to unlock TOD potential and drive sustainable economic growth.
If executed properly, TOD will not only reshape Vietnamese cities but also help the country achieve its goal of becoming a modern industrial nation.