Popularity of smart townships in Vietnam offers chances for investors
Rising demand for smart townships would enable investors to change the Vietnamese real estate landscape.
The popularity of smart townships in Vietnam becomes stronger following the fast-growing demand among young people, resulting in changes in the local property market.
The situation could offer different options for buyers, therefore, enable investors to change the urban landscape by advanced technologies and optimal solutions, JLL said in a recent report.
Indeed, property investors with incorporated technologies could enhance the living environment as “stay smart”, according to JLL, will be a trend and a “must-have” as well.
Property developer Sunshine Group is considered as a pioneer in this revolution as it has built a series of smart homes and smart living ecosystem by applying integrated smart technology into their products, JLL said in the report.
The company offers technology-based solutions that feature through Sunshine Cab App including Smart Home App and Sunshine Mart that offers cashless payment through Sunshine Online service for their residents.
The overall aim is to provide home-owners an intelligent and high–tech urban complex that focuses on transportation, shopping and relaxation services.
Meanwhile, Vingroup – the biggest private conglomerate in Vietnam – upgraded their 280-ha project into a dynamic smart township named Vinhomes Smarty City in the West of Hanoi in early April this year.
The project uses artificial intelligence (AI) technology with facial recognition features and a single command center to provide a full suite of information services for occupants, from air quality monitoring to environmental pollution warnings.
The developers’ smart townships have achieved high sale rates. In addition, Hanoi property market has welcomed more than 10,000 smart units with the sale rate of approximately 70% on an average since the first launch in 2016.
JLL believes that more smart township projects would come to the market in the near term as Ho Chi Minh City and Hanoi have one of the youngest, most tech savvy populations globally. Notably, the country’s population is young with 70% of its citizens below the age of 35.
Vietnam’s middle class is forecast to reach 33 million people by 2020. About 30% of the population consists of millennials, who tend to be more convenience-conscious than previous generations, and willing to pay a premium for quality of life.
The Visa Consumer Payment Attitudes Study found that 84% of Vietnamese respondents shop online at least once a month, trailing closely behind Thailand at 85%. It enables developers of new residential projects leverage on this trend and build smart townships to attract young buyers.
In addition, rising incomes, fueled by the country’s robust economic growth, are driving the smart township expansion.
The list of smart townships is expected to soon lengthen with BRG Smart City in Hanoi, Ecopark Smart City in the northern province of Hung Yen, Dragon Smart City in the central coastal city of Da Nang, and Thu Thiem Eco Smart City in Ho Chi Minh City.
These projects promise all types of convenience namely smart landscape planning with advanced IT infrastructure to build a smart and eco-friendly neighborhood where residents can enjoy integrated services within a walkable distance.
In another move, the adoption of new technology platforms generates new and more easily-accessible market data, which is key for overall real estate transparency in Vietnam, JLL concluded.