Vietnam Business Channel

Covid-19 shifts consumer preferences to eco-friendly real estate projects

 

“Ecological real estate is considered a safe investment channel amid the pandemic, meeting the demand for green living space and ensuring health safety for dwellers.”

Ecological real estate, defined as real estate developments that feature low densities of concrete spaces and high densities of green space, is emerging as a safe real estate investment during the Covid-19 pandemic, as buyers look for properties that meet their demand for green living space that can help ensure the health of residents.

In a recent survey of Vietnamese consumers on their preferred investment vehicles amid the Covid-19 pandemic, real estate was the number one choice of 31% of respondents, followed by bank savings – 20%; gold – 16%; cash – 15%, and USD – 8%.

Real estate consulting company JLL Vietnam has evaluated that the COVID-19 pandemic will cause short-term effects on Vietnam’s economic growth, business operation, and individual activities. JLL has forecast slower investment activities in the first half of 2020 due to uncertanties as to both the global and Vietnamese impacts of the pandemic.

The retail and hotel sectors are likely to be most affected, although with government shutdowns in effect from April 1st, a wider variety of companies and individuals are impacted. JLL believes that investors will be in favor of investment scenarios that provide the fewest risks and provide the greatest security and potential for profitability.

“Investors tend to distribute more capital in real estate along the time thanks to more attractive profit margins than other assets,” the report says.

 

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Eco-smart cities ~ with integrated conveniences will be a new trend of the real estate market


An report from SSI Research shows that the activities of buying and selling houses is still taking place in major cities like Hanoi and Ho Chi Minh City, due to the large accommodation demand and although there will be a slowdown, buying and selling of real estate properties will continue throughout the pandemic.

Although the real industry is being impacted from Covid-19, experts believe that it can achieve a prompt recovery if the pandemic is put under control. Support policies from both national, regional city agencies and promotion campaigns by developers will all impact consumer confidence and real estate recovery.

From a business perspective, the COVID-19 pandemic does represent an opportunity for satellite ecological property developments, if they are able to meet the demand for green living space along with integrated health care services.

 

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Novaland Group’s, eco-smart development, Aqua City covers 600 hectares south of Bien Hoa city, Dong Nai province,
will provide green living space amid a natural environment


Amid increased congestion and environmental concerns in major cities, consumers are seeking places to live where the air quality is good, and green living spaces are abundant. Trends are clear, consumers want to buy into projects that include schools, hospitals, retail shopping and sports activities and include high ratios of green space.

 

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An artist rendering of Aqua City’s promenade and boat marina


The real estate market will experience continuous changes throughout this year, but its clear that greater numbers of real estate customers are likely to choose eco-smart urban projects and satellite projects that include good infrastructure and conveniences that allow residents to avoid the daily environmental pollution, traffic congestion of big cities.

 

 

 

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