THE SUPPLY OF GREEN REAL ESTATE STILL LOWER THAN THE MARKET DEMAND IN THE NEW YEAR
Air pollution is an urgent problem not only in Vietnam but also in the whole world. Therefore, the “green” trend in production, business and investment is growing and gaining the support of many people as an effort towards sustainable social development and environment preservation.
“The supply is less than the demand” is still continuing in the real estate market.
Objectively, the world economic situation in 2020 continues to have been unpredictable, having a direct impact on our economy and real estate market. Due to the openness of the economy, FDI capital accounts for a large proportion of the economy’s capital (source: Ho Chi Minh City Real Estate Association – HoREA)
According to real estate experts, in 2020, the supply shortage go along with the land prices increase will make real estate products, especially in the luxury segment, which is located in prime locations, to become scarce in the market and increase in price. Caused by limited land availability, strict planning requirements and restricting the construction of skyscraper, the supply of high-end real estate in the central area is very rare. In the case of land availability, the cost of land is too high. Not to mention the lack of “free and clean” land (“free and clear” means there are no encumbrances secured to the property such as a lien or mortgage…).
The supply of “free and clean” land is scarce, the central land fund is exhausted and the cost of land is so high make the real estate market insufficient. (Image source: internet)
In December 2019, Hanoi People’s Committee proposed that a new land price level with an average growth minimum from 15% will be applied from 2020 for five years; increasing revenue to the government budget with taxes, fee, charges and surcharges, equivalent to about 3,810 billion VND. Similarly, Ho Chi Minh City also wants to promulgate price lists of different types of land, equivalent to 41% of the market price that will be applied in the period of 2020-2024, up 3 times higher than the old threshold. Because of the small number of approved projects, real estate businesses will lack serious goods.
Green Trend continues to receive attention from the market
According to CBRE Vietnam market report, green certified projects in Vietnam have not corresponded with the growth of the construction market, far behind Singapore, where this rate reaches 37%. The reason why the number of green buildings is low is due to high investment costs and strict requirements.
In real estate, the trend of “green space” and “green living environment” continues to receive the attention of investors as well as the first priority choice of customers. A lot of projects and products currently on the market are labeled as “green” with criteria and certificates issued from many kind of organizations. The general purpose of these certifications is to reduce the impact of such structures on human health and the natural environment through the efficient use of resources, improving employee productivity and reducing environmental pollution. Therefore, the development of “green space” and the deployment of eco-friendly buildings in harmony with nature and environment are also indispensable trends in the context of climate change having strong impacts to Vietnam.
Building a “green living environment” is an inevitable trend in the context of climate change having a strong impact on Vietnam.
It can be said that, based on the objective situation on the needs and trends of the real estate market, projects that meet all 3 criteria: “free and clean” land – green living environment – transparent legislation will have the best opportunity to be launched in 2020.
Successful person attach special importance to quality “green living environment”
The East Saigon area is still being prioritized to develop real estate projects located along main routes and where there is complete infrastructure. Along with the urban planning of District 2 and the policy of building Thu Thiem New Urban Area to become a center of Finance – Trade – High-class Services and also a Cultural – Entertainment center of the city at the regional and internationally level, the city government is putting more financial resources to develop the infrastructure for this area. Combined with the demand for owning a “green space”, owning a “green living environment”, it can be seen that the East Saigon area is a “delicious cake” to attract huge investors.
In recent years, Vietnam’s economic growth has been fast and stable, leading to an increase in the rich people. They have a high aesthetic, very strict in choosing quality living environment, where families can both live green and have modern amenities. Only projects with enough green space, synchronous infrastructure, luxurious facilities will meet the needs of the rich and successful. Therefore, satellite cities have become a bright spot. Previously, many people liked to buy houses in the central area for convenient transportation. But nowadays, more and more successful young people choose to move to satellite cities to find quality “green living environment”.
Only projects with enough green space, synchronous infrastructure, luxurious facilities will meet the needs of the rich and successful.
Modern successful young people don’t want to be left behind any trends, or separate from active life. Despite of quiet, many green spaces and outside the city, the living environment which is suitable for the young must contain utilities for fun, entertainment, sports, hanging out with friends…
SCC affirms the responsibility of “Vietnam Best Developer 2019”
In the past year, SCC Company has contributed to changing the face of East Ho Chi Minh City with two high-end projects: PhoDong Village urban area and Sol Villas high-class compound villas.
Deployed on a scale of over 41 hectares, located at the gateway of East Saigon, near District 2 Administrative Center, about 500 meters from My Thuy intersection, easy to move to the city center and other districts, PhoDong Village urban area and Sol Villas high-class compound villas have helped SCC have outstanding advantages to create typical high-class real estate products in Ho Chi Minh City.
PhoDong Village was honored with the “Green Award 2019”.
Not only is highly recommended in terms of location, design, gadgets, connectivity, PhoDong Village also conquers the market with many advantages that deserve the name “Green Urban Area Model” as: the system of high-class infrastructure systems spreads over 41 hectares; professional management system; potential price increase in the future; synchronized utility services; towards human values, community development; and the most special is the advantage of construction quality and handover schedule. SCC always commits time to issue “pink book” as well as fixed schedule to hand over to customers.
Each villa at PhoDong Village is decorated with square, spacious lines showing their elegance, sophistication and gracefulness, optimizing the flexible layout to help the space be filled with fresh air and natural light. The interior space is well-ventilated with functional areas: living room, dining room, kitchen and bedroom … connected together and performed in the overall space with many windows to help the air flow inside mingled with nature.
Moreover, towards the development of a model green urban area, PhoDong Village prioritizes the use of ecofriendly building materials while ensuring the superior, sustainable, cozy and comfortable for the owner. In particular, the “heart” of PhoDong Village – Sol Villas high-class compound villas – both satisfies the aesthetic tastes of the most fastidious customer and is a symbol of elegance and expression the status and flair of the owner.
Sol Villas high-class compound villas satisfies the aesthetic tastes of the most fastidious customer
Entering 2020, SCC continues to focus on developing, maintaining the prestige of project quality and delivery time on schedule, as well as efforts to show social responsibility, thereby affirming responsibilities of “Best Developer 2019”.