The rise of eco-real estate projects
According to the Vietnam Association of Realtors (VARS) and other market research firms, Vietnam’s real estate market has been slowing down in the short term. However, prices of all types of real estate in general, especially eco-real estate in satellite cities, remain affordable. Thanks to large stimulus packages with low interest rates, the potential of the real estate segment still captures investors’ attention amidst the lack of alternative investment opportunities in the market.
According to experts, the global health crisis has spurred the demand for better quality of life. Statistics show that quality housing products, a good living environment, and convenient location are the most attractive factors for buyers.
|Eco-real estate is forecast to be one of the key trends leading the market. Photo: Aqua City project in the East of Ho Chi Minh City|
“It is clear that downtown areas do not have enough land funds to develop eco-real estate projects with full on-site amenities. Therefore, there has been the wave of investments and suburbanization in satellite areas, which boasts good connectivity and convenient infrastructure,” said Tran Minh Hoang, deputy general secretary of VARS.
The competitive edge
Hoang also shared some factors that buyers should pay attention to when investing in eco-real estate in satellite cities. He noted that these projects need to meet the standards of high-quality living space. Firstly, the construction density is low, with high greenery coverage and water surfaces, creating a fresh living environment. Next, because it is a residential product, the project must be in a prime location close to city centres and key economic and financial areas. Lastly, these areas must boast developed infrastructure to meet the needs of residents.
Hoang said that many localities in Vietnam have natural ecosystems and beautiful landscapes, but are not necessarily suitable for eco-residential real estate development. These projects must be connected to big cities such as Hanoi or Ho Chi Minh City to be eligible to meet residents’ needs of moving, working and enjoying life.
For example, Dong Nai province in the eastern area of Ho Chi Minh City is appealing to many investors. The province has many advantages as it is home to many industrial zones with convenient traffic connections, large land banks, and dense rivers, which are suitable for eco-real estate development. Besides this, with the proximity to Ho Chi Minh City, Dong Nai has a great advantage in attracting people to live and work there in the future.
One remarkable project in this area is Aqua City residential project by Novaland Group. Covering an area of 1,000 hectares surrounded by the Dong Nai River and tributaries, the project is expected to create an ideal living urban area in the east, with full on-site amenities in healthcare, education, and entertainment.
“Aqua City is one of the pioneering ecological urban projects in the east of Ho Chi Minh City. The area will bolster a trend of smart eco-real estate development. With what is happening, I believe this will be the most liveable urban area, attracting residents in the next few years,” Hoang added.
|Luxury villas on Phoenix, Aqua City|
According to Hoang, the eastern area of Ho Chi Minh City boasts advantages such as a large land bank, good environment, and low population density. Thus, the most popular product in the area will be landed houses. This product line has high absorption, as many Vietnamese consider these a good investment. In the context of increasing healthcare demand, townhouses and eco-villas in these urban areas will continue to lead the segment of the market.
Customers can spend only 5 per cent (equivalent to VND 620 million) to invest in a product at Aqua City with many attractive incentives, such as an extra 5 per cent off of each product when investing in the semi-detached Song Gia Tuyet villas, 7.5 per cent interest rate commitment, and discounts of up to 4 per cent of the product value (according to the bank loan schedule).