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Property

JLL: Smart townships finding favor

Released at: 14:11, 24/05/2019

JLL: Smart townships finding favor

Photo: JLL Vietnam

High sale rates being seen at smart township projects, according to latest JLL report.

by Ngoc Lan

Smart townships are gaining significant popularity that has directly led to a series of changes in Vietnam’s property market, according to a JLL report released on May 24.

The report noted that smart townships launched by developers have achieved high sale rates. Since the first launch in 2016, Hanoi’s property market has welcomed more than 10,000 smart units with sale rates of approximately 70 per cent on average.

As a pioneer of this revolution, local property developer the Sunshine Group has built a series of smart homes and smart living ecosystems by applying integrated smart technology into their products. This features the Sunshine Cab App, similar to the Grab system, for residents, the Smart Home App, and Sunshine Mart, which offers cashless payments through the Sunshine Online service. The overall aim is to provide home-owners with an intelligent and high-tech urban complex that focuses on transportation, shopping, and relaxation services.

Meanwhile, Vingroup upgraded their 280-ha project in the west of Hanoi into a dynamic smart township called Vinhomes Smart City in early April. The project uses artificial intelligence (AI) technology with facial recognition features and a single command center to provide a full suite of information services for occupants, from air quality monitoring to environmental pollution warnings.

According to the report, Ho Chi Minh City and Hanoi have among the youngest, most tech-savvy populations globally. The country’s population is young, with 70 per cent of people being below the age of 35, with a 98.5 per cent literacy rate among those aged 15 to 35. Developers of new residential projects are leveraging this trend and building smart townships to attract young buyers.

In the time to come, projects such as BRG Smart City in Hanoi, Ecopark Smart City in northern Hung Yen province, Dragon Smart City in Da Nang, and Thu Thiem Eco Smart City in Ho Chi Minh City are expected to provide a range of new technological features such as smart landscape planning with advanced IT infrastructure to build a smart and eco-friendly neighborhood where residents can enjoy integrated services within a walkable distance.

However, JLL also noted while technology could be a good option for investors and individual buyers, the latter should be aware that different developers are providing different technology solutions to varying degrees. Furthermore, technology that is not pragmatic and does not enhance efficiency or livability for users may not take off.

It concluded that the adoption of new technology platforms generates new and more easily-accessible market data, which is key for overall real estate transparency in Vietnam.

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