Keys to Sustainable Integrated Development in Vietnam

Other than the plain mono-function residential cluster, the term refers to a neighborhood or township development with mixed-use components such as, residential, retail, institution, leisure and more where residents can live, work and play

March 21, 2018

VIETNAM, 21 March 2018 – Other than the plain mono-function residential cluster, the term refers to a neighborhood 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 harmonious 'street-scape' and architecture. As the Vietnam real estate market is gradually maturing, a sustainable wholesome living environment is an important factor for buyers to consider. Based on our real estate expertise, the suitable size of an integrated development should be in excess of 5ha to ensure commercial viable facilities.

In the past 4 years, the volume of integrated development has substantially increased within the Vietnam residential market. Given that the government town planning capacity and funding is limited, 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.

Developer consideration; keys to sustainable integrated development:

1. 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 (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.

2. Convenient and available transportation: In the future, most integrated projects will be developed in outskirt areas due to land bank limitation. Close proximity to the CBD is no longer important due to improving infrastructures. 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 creating their own transportation systems such as shuttle bus services to various key locations within the city. 

3. Walkable and lively neighborhoods: Customarily, the Vietnamese enjoy walking, spending time in parks and communicating with their neighbors. Developers should thus leverage shop-house developments along internal roads and main roads to create active street life. This has been successfully achieved in the Phu My Hung Township.

4. 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 living the 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 value capital gain in the future. Click here for more details on Thu Thiem NUA.

5. 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.

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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

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