TOD IN HO CHI MINH CITY: FROM STATION-AREA PLANNING TO LAND VALUE AND PROJECT DEVELOPMENT

1. TOD Is Moving from Strategic Direction to Concrete Planning

Transit-Oriented Development (TOD) is an urban development model that places public transportation at the center of urban planning, integrating residential, commercial, office, and service functions around major transport hubs. The model aims to improve access to metro services, make more efficient use of land, reduce reliance on private vehicles, and enhance urban connectivity.

In Ho Chi Minh City, TOD is being developed in conjunction with a polycentric urban structure, with stronger connections between districts and neighboring areas. This strategic direction provides a foundation for organizing urban space around public transport infrastructure while creating opportunities for integrated urban development. (Ho Chi Minh City Press Center)

Metro Line 2, running from Ben Thanh to Tham Luong, is one of the key corridors in the city's TOD development plans. Ho Chi Minh City has approved the planning boundaries for five areas along the line, covering nearly 940 hectares in total. This is a preparatory step toward studying spatial organization, making more efficient use of land resources, and promoting urban development integrated with the metro system. (CafeLand, Tuoi Tre)

In addition to Metro Line 2, areas around Metro Line 1, Thu Thiem Station, Binh Khanh Station, and the Ben Thanh–Can Gio corridor are also included in the city's TOD planning pipeline. Several planning approvals were expected between late 2026 and 2027, indicating that the scope of TOD planning in Ho Chi Minh City is gradually expanding. (VnEconomy)

During implementation, three distinct stages should be distinguished: approval of planning boundaries, approval of detailed planning schemes, and completion of the legal procedures required for individual projects. Each stage has its own requirements and timeline, directly affecting investment implementation and the ability to realize real estate value.

2. The Size of TOD Areas Along Metro Line 2

The five TOD areas around Metro Line 2 cover a total of 939.18 hectares, with considerable variation in size across individual areas.

Source: CafeLand.

The differences in area suggest that each location needs to be assessed according to its own development conditions. Central areas should be evaluated in the context of the existing urban fabric, while areas to the west and the Tham Luong depot require further assessment of land-use functions, transport connectivity, and spatial planning potential.

The TOD study area in Ho Chi Minh City may extend up to 1,000 meters from the designated center of a station or depot. However, the actual boundary depends on local conditions and connectivity. Therefore, this maximum radius does not mean that all land within it automatically falls inside an officially designated TOD boundary or qualifies for higher development parameters. (Tuoi Tre)

Regarding implementation timelines, VnEconomy reported that the TOD planning scheme for Metro Line 2 was expected to be submitted for appraisal and approval in December 2026, while planning for the Thu Thiem Station area was expected between December 2026 and January 2027. Other areas were expected to follow a timeline extending into the third quarter of 2027. These were projected milestones reported at the time of publication, not confirmation that the relevant procedures had been completed. (VnEconomy)

3. Emerging Developments in TOD

One notable shift is the move toward planning integrated urban clusters around stations rather than simply developing land along transport corridors. The value of TOD depends not only on geographic proximity to a station, but also on walkability, bus connections, land-use functions, and the quality of public spaces.

At the same time, Ho Chi Minh City is studying mechanisms to capture the additional value generated by land. According to VnExpress, a policy proposal reported on September 8, 2026, outlined five types of charges related to additional floor area, increases in land value, the exploitation of railway infrastructure, direct connections to public transport, and contributions toward infrastructure improvements. (VnExpress)

These measures were proposals under policy development and should not be treated as financial obligations already in force for all TOD projects. For developers, the financial impact of any such charges must be assessed based on official legal instruments and the specific implementation mechanisms adopted once the relevant policies are enacted.

4. Key Considerations for TOD Project Development

First, location advantages must be supported by actual demand. A site near a station does not necessarily have strong commercial potential if access routes are inconvenient or the surrounding transport network is fragmented. Developers should assess practical accessibility and demand for housing, rental properties, and services rather than relying solely on distance to a metro station.

Second, higher planning parameters do not necessarily translate into proportionately higher profits. Additional floor area may improve potential revenue, but it can also increase construction costs, infrastructure requirements, and capital needs. Financial viability should be assessed through a financial model. The base case should use planning parameters that have been confirmed, while any additional development potential associated with TOD should only be included when supported by an appropriate legal and planning basis.

Third, legal status remains a decisive factor. A site located within a TOD boundary does not automatically acquire the right to change its land-use purpose, increase building density, or proceed with project development. Before committing to an investment strategy, developers need to verify the applicable planning framework, land documentation, and relevant approval procedures.

Fourth, planning timelines must be assessed alongside infrastructure delivery. If a station is not yet operational or transport connections remain incomplete, anticipated market advantages may not materialize as expected. Investment and capital disbursement plans should therefore be tied to verifiable legal and infrastructure milestones rather than relying solely on expectations of price appreciation driven by planning announcements.

5. From Planning to Long-Term Investment Performance

The planning developments and proposed policy mechanisms highlight four key considerations:

• Scale does not guarantee efficiency. The nearly 940 hectares designated for planning across the five TOD areas along Metro Line 2 encompass locations with different functions and development conditions. Each area should be evaluated individually rather than assessed using a uniform investment model.

• Planning boundaries do not confer development rights. The potential 1,000-meter radius provides a basis for considering the scope of TOD planning; it does not guarantee higher density or additional building rights.

• Additional land value must be assessed alongside potential financial obligations. Proposed TOD-related charges may affect project returns, but the obligations of developers can only be determined based on the applicable legal framework and specific implementation rules.

• Market absorption determines long-term sustainability. Sale prices, rental rates, occupancy levels, and actual demand must be validated. Expectations of price appreciation arising from planning changes cannot replace thorough market research.

Going forward, developers should monitor planning approvals, land-related legal status, railway construction progress, financing costs, and actual transaction data. These factors provide a more reliable basis for assessing whether strategic planning objectives can translate into investment performance, rather than relying solely on expectations of land value appreciation.

Conclusion

TOD development in Ho Chi Minh City is creating opportunities to integrate public transportation, land-use planning, and the mobilization of urban resources. With the planning boundaries of five areas around Metro Line 2 established across a total of 939.18 hectares, the next challenge is to organize urban space effectively and assess development potential at the area level.

However, investment opportunities must be evaluated in light of planning progress, legal status, infrastructure readiness, and market demand. In the long term, a TOD project's competitive advantage will depend not only on its proximity to a station, but also on its ability to deliver products that meet actual market needs, achieve financial viability, and comply with specific legal and implementation requirements.