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Property

Industry 4.0 boosting real estate development

Released at: 14:13, 11/08/2018

Industry 4.0 boosting real estate development

Photo: Khanh Chi (VET)

VET holds "Vietnam's Real Estate - Vision & Prospects" seminar in HCMC on August 11.

by Hong Nhung

Industry 4.0 and the wonderful progress made in technology have had major impacts on almost all sectors and fields. In the context of digitalization and artificial intelligence (AI), smart cities have become a new trend and express breakthroughs made in Vietnam’s real estate solutions, the “Vietnam’s Real Estate - Vision & Prospects” seminar held by Vietnam Economic Times in Ho Chi Minh City on August 11 heard.

FDI into the country’s real estate sector is second behind only manufacturing and processing and accounts for more than 27 per cent of the total, according to figures from the Foreign Investment Agency (FIA). Many analysts have said that the property industry’s attraction will help standardize the country’s real estate market.

Vietnam is currently experiencing strong urbanization in major cities, especially in the two largest cities of Hanoi and Ho Chi Minh City, as well as in other key economic zones. The urban population will reach 46 million by 2020, or about 45 per cent of the country’s people.

The urbanization rate is projected to increase to 46 per cent by 2025 and it is estimated that, over the next decade, total new home demand may reach 5.1 million units in the low and mid-end segments. The pace of urbanization not only increases demand for housing but also stimulates demand for real estate for tourism and hospitality. This has set urgent tasks and the need for solutions to restructure appropriately and effectively against population density in urban areas.

The Vietnamese Government is well aware of the importance of Industry 4.0’s impacts and is studying international experience in order to build national projects for smart cities. Most recently, the Prime Minister approved a project on sustainable urban development in Vietnam by 2025 and vision to 2030. These are important orientations with a fundamental and strong impact on the development of the local real estate market.

“Ho Chi Minh City has also approved a project to develop its real estate market in the next 10-15 years,” said Mr. Phan Truong Son, Manager of the Housing and Real Estate Market Management Agency at the Ministry of Construction. “It will inevitably lead to smart cities and green architecture that adapt to climate change. Along with property development, the city’s transport infrastructure will also be modernized.”

“Smart is now a global trend due to advanced development and the influence of digital on many aspects of daily life,” said Mr. Jimmy Chan, CEO of Alpha King Real Estate. “The concept of smart is leading people, especially young people, to the future. As a real estate developer, our role is not only to develop a tangible product but also to create a new lifestyle. We believe that ‘smart’ can contribute to a better living environment. By using the innovation of technology as a tool, we are piloting the building of a smart economy in all of our products, including Alpha Town, Alpha City and Alpha Mall.”

Some 97 per cent of those at the seminar expressed interest in Ho Chi Minh City’s smart city project. At the same time, 74 per cent said that traffic jams and flooding in the city must be resolved for the success of a smart city in the future.

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