Instead of projects with a small scale, realtors are now developing large projects in areas away from the city center.
The typical characteristic of the new property model lies in the large area of thousands of hectares, associated with sufficient facilities that serve the working and living needs of people.
However, such projects require huge amounts of investment capital, take longer time to implement, and need investors with project management capability.
VSIP, a well known brand with IZs in Binh Duong province, for example, is now also an IZ – urban area – service center complex, including VSIP Quang Ngai, covering an area of 1,700 hectares, of which 1,200 hectares are reserved for IZs and 500 hectares for urban areas and service centers, near Quang Ngai City’s center.
In Long An province, Tan Thanh Long An Investment recently kicked off the construction of Viet Phat IZ & urban area project. The complex comprises 1,200 hectares of land for IZ and 625 hectares for urban area.
|The developer intends to develop a complex with all necessary services and utilities such as shopping centers, amusement parks, sports centers ecological parks, hospitals, schools and ecological villas.|
The developer intends to develop a complex with all necessary services and utilities such as shopping centers, amusement parks, sports centers ecological parks, hospitals, schools and ecological villas.
All these facilities will create a green, clean, civilized and modern living environment that serves the needs of hundreds of thousands of people, while helping ease population pressure on HCM City.
Phuoc Dong Complex in Tay Ninh and Dung Quat Complex in Quang Ngai province are other projects also developed under this form.
According to JLL Vietnam, the complexes of IZ and urban areas are a modern type of real estate which create more positive value to the economy and society, and strive for sustainable development.
Analysts pointed out that real estate markets are not just in large cities or central areas. More and more residential clusters exist with their own core centers and facilities, including shopping centers, supermarkets, cinemas, hospitals and schools.
The prices of local property are defined based on facilities and the advantages in planning and infrastructure. Therefore, many people are surprised that real estate prices in suburbs are nearly the same as the prices in the old quarters near the central areas.
However, analysts also pointed out a lot of disadvantages of the new model. It requires huge land fund and capital. But it is not easy to attract people to the areas to settle permanently, which is a hurdle for the complexes to become real urban areas and IZs.
The media have recently featured industrial properties, especially industrial land, as a potential area to attract investment.
A zero-dong supermarket was opened on Saturday to support 1,500 workers of the Thang Long Industrial Zone in Hanoi who have been financially affected by the coronavirus pandemic.