Why a smart eco-urban project is a smart investment

A recent report of Savills Vietnam says houses attached to land are a long-term investment channel with higher returns than securities or bank deposits.

While investors tend to be more cautious as the degree of uncertainty in properties keeps increasing, there are still those who seek long-term investment opportunities in high-quality products.

Ho Chi Minh City is home to an estimated 13 million people, making it the most populous metropolis in Vietnam and also a potential property market. Each year the city’s population goes up by 200,000 people, meaning a million people every five years on average, placing great pressure on urban management, social infrastructure and technical infrastructure, especially housing.

Despite this huge demand for housing, the central area of HCMC has seen a modest supply of real estate projects. In addition, prices of the city center land have gone beyond the reach of the majority of its residents, causing minor capital flows to shift into the satellite localities.

Therefore, the satellite market, with a large bank of land, lower prices and strong infrastructure development, is becoming an ideal destination for both investors and buyers. The neighboring provinces of Dong Nai and Binh Duong, for instance, are expected to gain real estate prominence in 2020, in particular with their smart ecological urban areas.

An aerial view of smart eco-friendly urban areas in the east of Ho Chi Minh City.

The eco-real estates in HCMC's eastern part have a huge advantage of good transport infrastructure. This area accounts for 70 percent of the total investment capital allocated for the city's transport infrastructure development in the 2010-2020 period.

Another strength is green living space fully integrated with utilities. The eco-satellite urban areas own larger banks of land, facilitating developers in adopting large green spaces, synchronized utilities and a spacious environment. This allows residents to enjoy a peaceful life with less dust and traffic jams while maintaining quick access to the city center.

Industry insiders say that investors are also prioritizing townhouses and villas, partially because many Vietnamese believe houses attached to land are a more sustainable investment channel.

On the warm-up day after the Covid-19, four Novaland exchanges reported nearly 1,000 customers gathering to find information about Aqua City, a smart eco-urban project developed by the company in the east of HCMC. A Novaland representative said that the project has drawn attention from customers despite negative impacts of the pandemic on the real estate market.

Investors at an Aqua City introduction event.

With an area of nearly 1,000 hectares, Eco – smart city Aqua City is oriented to be a smart and sustainable project, preserving natural ecological factors from large river systems such as the Dong Nai, Buong and Trong rivers.

Located on the facade of Huong Lo 2 Street connecting with the HCMC - Long Thanh - Dau Giay Expressway, the project is well-connected with HCMC and economic and tourist centers in the southeastern region.

Delivering all conveniences, the project devotes 70 percent of its area to green spaces, transport infrastructure and modern, sophisticated facilities that include schools, hospitals, health centers, marinas, golf courses and sports complexes.

Aqua City also applies modern technology in its operations, including solar energy, waste sorting system and cameras for security purposes.

An artist’s imagination of a modern lifestyle with multiple conveniences at the Aqua City project.

Experts say that synchronized social infrastructure and the reputation of developers are factors that will interest investors most about satellite urban projects.

Explaining the concept of synchronized social infrastructure, Su Ngoc Khuong, senior director of Savills Vietnam's investment department, noted: Previously, real estate projects were often developed in areas with available infrastructure. Given the overload on infrastructure today, any project having schools and hospitals as integral parts will attract customers.

Customers interested in Eco - Smart city Aqua City can find out more information and register for advice at: http://aquacity.com.vn/ or contact the hotline: 0943 79 79 79.