Previously, when people mentioned the urban area, people only thought of Phu My Hung, an urban area of 750 hectares in District 7, now is different. Real estate market recently recorded many large-scale projects, and the list is growing with many new names.
Extend the list
Typically, Sala urban area in District 2. The project has an area of 160 hectares, located on Mai Chi Tho Avenue, just away from the center of District 1 by Thu Thiem Tunnel. Or right in District 1 is the Vinhomes Central Park project invested by Vingroup. The project has a 43 hectares area, including high-class apartments and villas, office for lease and serviced apartments, commercial center and other utilities.
A little further, Vingroup is also investing in the Vincity Grand Park project in District 9. The project is 365 hectares, consisting of four clusters of high-rise buildings and low-rise housing areas. The large scale of the project and the inherent name of the investor have made this project a focus on the HCMC real estate market recently.
Also in the eastern region of Ho Chi Minh City, Dai Phuc Group is developing Van Phuc Riverside project located on Highway 13, Thu Duc District. The project has a total area of up to 198 hectares, in which the investor dedicates 60% of the area for the development of water and green landscapes, helping to bring fresh living space.
For projects of urban stature, not all investors have enough resources to implement. Photo: Thuan Nguyen
Moving to a little further towards Long An, Nam Long Group is also investing in the WaterPoint Long An urban area project with an area of 355 hectares. The project includes low-rise housing areas (townhouses, villas) and high-rise buildings (apartments) and utilities such as office complexes, shopping malls, services, entertainment, hospital, education and sports complexes.
Participating in the development of closed urban-style projects, not only domestic enterprises but also foreign investors. Typically, Gamuda Land from Malaysia also develops Celadon City urban area in Tan Phu District, Ho Chi Minh City with an area of up to 82 hectares.
Not easy to develop urban area
According to experts, the advantage of the mixed-use urban model is to provide a full range of commercial facilities, services and offices, creating a sustainable community. Here, it can itself be operated as a miniature city, with all the utilities needed for daily life but still separate from dust, traffic jams and noise outside the street.
Talking to CafeLand, Mr. Stephen Wyatt, General Director of Jones Lang LaSalle Vietnam (JLL), said that the concept of integrated real estate in the housing market refered to projects of the same size as a neighborhood or a nearby urban areas, where integrating multiple mixed functions in a project such as housing, retail, education, entertainment, and many other utilities.
Over the past four years, the number of integrated real estate projects has increased significantly in the Vietnamese housing market. According to Mr. Wyatt, the budget and manpower constraints in the Government's urban development plan have created opportunities for real estate developers to jump into the big playground - the playground of integrated real estate.
However, the quality of these projects is not equal, due to the difference in experience and capital among developers. Based on JLL research, the ideal area for an integrated real estate project should be larger than 5 hectares to ensure space for utilities.
Ms. Nguyen Thi Thanh Huong, General Director of Dai Phuc Land, said that a project to meet the needs of people, the project scale must be large enough, at least about 10 hectares or more. Thus, creating a synchronous planning on technical infrastructure, just enough to develop utilities for life, will solve the long-term sustainable development problem.
However, to be able to do this requires a lot and long-term investment in infrastructure, because public utilities in the early stages make the development process lengthy. Therefore, developing a big urban project does not stop at the scale story but the vision and capacity of the investor must be strong enough.
“The bigger the project (with an area of 50 hectares or more), the more difficult the project implementation story. Not only will the land be created, the compensation time for site clearance will be longer, the project approval procedure will be longer, but the business resources poured into the project must also be greater” Huong said.
Therefore, with the project of stature urban area, not all investors have enough resources to implement and have enough ability to experience ups and downs of the market to come along with the project judgment.
Ms. Huong took the Van Phuc City urban area project as an example. To be able to bring the product to market, Dai Phuc Land has had to undergo a 15-year preparation process, accept greater resources investment, long investment period and face the risks from the market fluctuations. But in return, businesses have the right project.
General Director Dai Phuc Land said that for large-scale projects, it is necessary to have clear policy mechanisms, specific characteristics or can be divided into each project level to facilitate the The investor has more favorable conditions when developing the project.
“For investors to have enough support and peace of mind to develop projects of residential areas and urban areas with a large enough scale, creating a higher quality of life, it is clear that the policy stability story and the market is very important”, said Ms. Huong.
According to Thanh Thinh