Real estate businesses are competing in utilities

In addition to the criteria of price, location, and prestige, of the investors are also "aggressive" in utilities to attract real demand. Increase the liquidity of the project is considered a long-term strategy of some real estate businesses today, especially in the context of increasingly demanding product choices from customers.

Not many real estate businesses can do it

In fact, in order to invest in infrastructure and synchronous utilities for a project (in the form of a closed urban area), the sufficient condition is that there must be enough land for implementing the project. However, in an overview of the current real estate market, not many businesses own vast land bank, develop long-term, synchronize a project over a long period of time, or have available land fund to form the urban area within 5-10 years.

During the development of the real estate market, it's easy to see one thing: Outstanding apartments or real estate on the market do not have much. In addition to some long-standing prominent names such as Vingroup, Novaland, FLC, Phu My Hung, the market has recently mentioned a number of units such as Dai Phuc, Cat Tuong, Nam Long ... have been investing and forming. Some real estate projects are considered "dead" by the level of investment in utilities and infrastructure more prominent than other units.

In businesses, having a land fund to make large-scale projects is difficult, developing and targeting a large urban area with residents, living in infrastructure and utilities is even more difficult.

In fact, most of the projects appearing in the real estate market in recent years are mainly small, spontaneous urban areas with few imprints in the long run. For the apartment building, the internal utility investment is located within the project, depends largely on the location of the project, while in urban areas including many types of integrated real estate, project utilities are directly related to the liquidity story; the investor's impression on the market and the expansion of the project scale as well as the business outside the big city.

That is also the reason, the investment in utilities, infrastructure in urban projects is always fierce and is a "long-term" problem of real estate businesses. Many real estate businesses aspire to become a pioneer in an area, making a marked difference when spending hundreds to thousands of billion dong as a project utility, turning an investment project into a point. to long term associated with the name of the business in the market.

In fact, not many real estate businesses persist in pursuing this path. Currently, quite a few businesses are appreciated at the level of investment and synchronization in the project, which is also a way for them to pursue a long-term brand for their business.

Having been successful with Cat Tuong Phu Sinh urban area (Long An), this is both a place to settle and a tourist destination for the Western people. Dong Xoai, Binh Phuoc. Recently, this business is highly appreciated by continuously investing "aggressively" in the internal facilities of the project to create liquidity and attract real demand for living in urban areas. According to actual records, after each sale, internal facilities include world architectural heritage such as Arc de Triomphe, Notre Dame Cathedral, Apollo Fountain, White House, Big Ben Clock Tower, Coloseum Roman Coliseum... were created by this unit at the project with the ambition that this place will become a prominent attraction of Dong Xoai City.

In fact, the project shows that, in addition to the large-scale commercial centers under construction, the completed The Destina architectural heritage park is creating heat for this project. At the weekend, many customers from all over the place come here to learn about the project. 

According to a representative of Cat Tuong Group, spending heavily on utilities and project infrastructure is also a way to compete in the real estate market when the "taste" of buyers is changing more and more towards quality. Utilities are factors that add to the added value of the project, attracting residents to stay in the way as well as building the corporate brand in the deepest and most sustainable way.

Reportedly, after 3 launches, this investor is offering land plots in Phu Thien Kim commercial area with the price of 998 million dong/ground with flexible payment method.

Similarly, another name in the Southern real estate market must mention Dai Phuc Group. There are not too many projects on the market but this unit is highly appreciated for "paying" in the story of investing in internal utilities of the project. With the Van Phuc Urban Area project (Thu Duc District, Ho Chi Minh City) for nearly 10 years, this unit, besides developing high-quality real estate types, spent VND 1,000 billion on internal utilities. is the highlight of this unit on the market. After each offering, the projects such as international schools, underground high voltage grid, or hospitals, riverside parks with a total estimated capital of 2,000 billion.

The representative of this unit once said that regardless of the development of a real estate project, the most important is that the investor must have a vision, develop a resonant ecosystem, practical works to meet the needs of entertainment, entertainment, living facilities. That is the successful project in the real estate market.

Another unit that "can do it" must mention Vingroup when most of its urban projects are marked by forming closed urban areas, investing in utilities and large-scale infrastructure. Worth mentioning, when this Group's project appears in any area, immediately the real estate of that area will be vibrant. Recently, the Vinhomes Grand Park project (District 9) appeared on the market to continue creating a good wave of investment when the biggest highlight of the project is that these projects are sufficient utilities to be invested.

Novaland, Khang Dien are also one of the businesses with a number of large-scale projects, which are well invested from living utilities to construction quality. From an objective perspective, the brands of these businesses also come from the story of investing in project utilities in large-scale projects spanning the area of Ho Chi Minh City and neighboring provinces.

Perhaps investing a lot of money in infrastructure, project utilities is no longer the story of a big real estate company, but it is a trend that is gradually formed in the market by investors with long-term vision. The medium-sized investors are creating their own strengths to compete with the old real estate giants with the utility element of the urban areas with the "long-term" development strategy.

According to businesses, utilities are not only a factor to meet the needs of residents, but they are located in the problem of differences, synchronization, which creates liquidity not only in one project but many other projects.

Easy but not easy

Obviously, the long-term investment strategy in urban areas has been seen by many real estate businesses, but not all units can do it.

In the market, many advertising units are large-scale urban areas that are invested in utility, but the reality shows that most of them are projects that only do enough factors, to a certain extent in a short time. Even, just setting up a welcome gate to beautify the project but not going through the story of synchronous utilities, creating the strengths of the residential area and meeting the demand for utilities and quality that require daily the higher from the resident.

In fact, very few businesses are persistent enough to pursue the utility story that goes hand in hand with the quality of their constructions.

According to enterprises, it is more difficult to get land fund for making large scale projects, developing and targeting urban areas with large populations, after-sales management. Many investors only go half way of the story of investing in utilities because of many different factors, but there are also businesses going to the end because of the clear advantages. However, most of them insist, it is not a simple journey.

According to Dai Phuc Land's representative, the financial potential of resonating with the long-term strategy and enthusiasm of the investor is considered to be an essential element to be able to create new urban areas, synchronize living amenities and meet real needs of residents. But to get these elements is not possible in day one, day two, it is impossible to do many projects at the same time but it is a round focus for one to two large projects in a long time. Before the context, the market is always changing, the higher the demand, the greater the pressure on products and cash flow. Therefore, very few businesses are persistent enough to pursue the utility story that goes hand in hand with the quality of the construction.

“The biggest difficulty of enterprises doing large-scale and long-term projects is that policies and procedures are constantly changing, which makes businesses unable to cope. In order to create a scale, methodical, quality urban area that attracts residents to live and increases long-term value, the policy must be stable or have appropriate and flexible regulations for each type of product, owner investment... so that new businesses peace of mind to develop good projects" Dai Phuc Land representative once shared.

In the same opinion, a number of businesses that follow the path of developing a large-scale, long-term real estate project, creating value by the quality of utility life also believe that, in addition to the competitive pressure in the market, businesses are under considerable pressure on the real demand of residents and change the psychology of buyers “whatever they pay”. Doing a big project, investing hundreds to thousands of billion in local utilities and infrastructure, but to get customers back, that's another story. Whether they are willing to understand and pay for the value added from the utility to enjoy or not is a problem for the project owner.

Although the investment in utilities by businesses is the sustainable factor that pulls the real demand for living in urban areas, it is not easy, it is the long-term steps that the business itself must have the strengths, even calculated before the constant change of the market.

According to Ha Vy