Hanoi pivots toward transit-oriented development amidst rapid urbanisation

Investors eye Hanoi’s metro corridors for mixed-use, high-density developments.

Hanoi is reshaping its urban growth model with a focus on transit-oriented development (TOD), as the city seeks to tackle rising congestion and pollution while accommodating a population of 8.5 million, according to Savills Vietnam.

Over the past two decades, Hanoi has evolved from a compact, monocentric city around Hoan Kiem into a sprawling metropolis. Rapid urbanisation has strained infrastructure, prompting the government to pivot toward compact, transit-focused growth rather than counter-urban sprawl. The TOD strategy emphasises expanding public transport, developing ten metro lines, and clustering new residential, commercial, and service hubs along rail corridors to promote polycentric urban growth.

Currently, Hanoi’s metro system is still in its formative stage. Of the planned 417 km network, only the Cat Linh–Ha Dong line (13 km, 12 stations) is operational, carrying roughly 32,000–35,000 passengers daily. The Nhon–Hanoi Station line (12.5 km, 12 stations) is under construction, with its elevated section already in service and the underground section expected to open in 2027. Looking further ahead, Line 2 (Nam Thang Long to the city centre) and Line 5 (West Lake to Thach That) are scheduled to begin construction in Q4 2025.

According to Savills, JICA’s TOD concept plans highlight several interchange nodes as key opportunities for high-density, mixed-use development. While no officially designated TODs have yet been completed, early signs of transit-driven shifts are emerging. Surveys by VnExpress show commuters increasingly purchasing monthly metro passes and integrating the lines into their daily routines, often using feeder buses or walking for last-mile access.

The prospect of TOD has already attracted investor interest. Properties along planned metro corridors are experiencing rising values, as the future presence of metro stations promises predictable foot traffic and a natural catchment for retail, F&B, and service-oriented businesses. Savills notes that this pattern mirrors global TOD trends, where metro-linked development drives both residential and commercial demand.

“Once operational, metro lines create hubs where daily commuters generate steady footfall,” the report stated. “This makes station-adjacent properties highly attractive for developers and investors seeking long-term, transit-driven growth.”

Hanoi’s TOD strategy underscores a broader trend of public transport integration shaping urban real estate, positioning the city for more sustainable, connected growth over the next decade.