Keys to sustainable integrated development in VietnamMarch 16, 2018 / By
An integrated development refers to a neighbourhood or township development with mixed-use components such as residential, retail, institution, leisure and more where residents can live, work and play. It comprises multifunctional and interconnected buildings, which focus on the surrounding environment to ensure a harmonious ‘street-scape’ and architecture.
With Vietnam’s real estate market gradually maturing, a sustainable wholesome living environment has become an important factor for buyers to consider. Based on our research, an ideal size for an integrated development should be in excess of five hectares to ensure critical mass and viability of commercial amenities.
In the past four years, the number of integrated developments has substantially increased within the Vietnam residential market. Given the limited government town planning capacity and funding developers have jumped on the opportunity to construct integrated communities. However, the quality of these developments differ, due to the varying levels of experience amongst developers and the level of funding available.
Source: JLL Vietnam Research
Developer considerations; keys to sustainable integrated development:
- Fresh air and high quality landscape which focus on shaded areas: Premium parks and public spaces benefit integrated projects by creating sustainable value economically, socially and environmentally.Green space is vital part to the everyday urban Vietnamese. Ecopark Township in Hung Yen province (a 50-minute drive from Hanoi) is a successful case study. With a system of three major parks occupying almost 10 hectares, it is excellent for weekend picnics for both residents and Hanoi CBD dwellers alike.
- Convenient and available transportation: In the future, most integrated projects will be developed in the outskirts where land is readily available. Close proximity to the CBD is less of an issue given recent improvement to infrastructure. However, convenient transportation enabling easy travel to surrounding areas is a strong competitive advantage.In remote areas without available planned infrastructure, developers can look into providing their own transportation systems such as shuttle bus services to various key locations within the city.
- Walkable and lively neighborhoods: Vietnamese enjoy walking, spending time in parks and communicating with their neighbours. Developers should therefore leverage shop-house developments along internal roads and main roads to create an active street life. This has been successfully achieved in the Phu My Hung Township.
- Building variety and human scale: Careful massing of buildings and a variety in architecture design together with meticulous consideration for human scale will allow for a livable public space. Avoiding a monotonous building expression will provide a delightful pedestrian experience and enhance the living environment.One good example is the Thu Thiem new urban area in HCMC, with careful master planning consulted by Sasaki Ltd. We believe this community will benefit from strong capital gain in the future. Click here for more details on Thu Thiem NUA.
- High-level education infrastructure: Education is one of the top priorities for Vietnamese parents; herein lies an opportunity for developers to incorporate schools to the infrastructure for a competitive edge. Vingroup has been successful by including their schooling operations into their townships.
More on 'Residential' in 'Vietnam'
- Optimistic outlook for M&A activities in VietnamAugust 25, 2023
- Latest FDI trends in Vietnam’s real estateApril 25, 2023
- Sustainability is the way forward for Vietnam’s real estateMarch 25, 2022
- Developers race for land banks in VietnamSeptember 28, 2021
- The rising home price-to-income ratio in HCMCJuly 2, 2021