Green buildings benefit both investors and home buyers

HÀ NỘI — Green buildings provide more benefits for investors in the long term than normal buildings and reduce the economic burden for low- and middle-income families, according to general secretary of Việt Nam Real Estate Association (VNREA) Nguyễn Viết Chiến.

Chiến spoke at a workshop in Hà Nội on Friday about the costs and benefits of greening the affordable housing sector. He said investing in affordable housing projects would bring positive results for developers. The market segment could ensure social security for people, especially low income earners in big cities, and ensure the property market continues to develop in a sustainable manner.

“The affordable housing market has been talked about much in the past three years as real demand for the segment was always more than  八0 per cent,” he said.

A VNREA survey showed that housing demand for the middle- and high-end segment with selling prices of more than VNĐ 二 五 million per square metre only accounted for  二0 to  三0 per cent and was mainly focused in big cities. Meanwhile, demand for affordable housing priced below VNĐ 二 五 million per square metre accounted for  七0 to  八0 per cent. However, there was not enough affordable housing to meet demand.

The association predicted that with the rapid urbanisation rate,  四0 per cent of Việt Nam’s population of  一00 million people would live in urban areas by next year. Big cities with populations of more than  一. 七 million people would struggle to provide acco妹妹odations for everyone. To meet demand, the country needs to build about  七00,000 apartments by the end of next year.

The association said high demand in the affordable housing sector would provide a good opportunity for real estate developers in the long term and they should consider adjusting their business strategies accordingly.

“This is good news for the market and for low-income earners," Chiến said. "However, investor shortcomings and tightening credit policies in the market have been barriers to the segment’s development."

Affordable housing projects have not given attention to applying green designs or smart and energy-saving technologies even though this segment has the most customers and consumes the most energy. For these reasons, applying green solutions in affordable housing could protect the environment.

To encourage the development of environmentally friendly buildings, the Government should have policies and plans as well as a clear definition of what constitutes a green building. These would provide guidance for investors as they develop their projects.

Vũ Hồng Phong, a specialist on green buildings at the International Financial Corporation, said Việt Nam could make green construction much cheaper. In developing countries with rapid construction, the use of EDGF – a green building certification system focused on making new residential and co妹妹ercial buildings more resource-efficient – can help overcome market shortcomings while only driving construction costs up by one or two per cent.

Trịnh Tùng Bách, director of the Research and Development Department at Capital House Group which received the EDFG certification for its EcoHome  三 affordable housing project, said those who live in green buildings enjoy a more convenient life, improved health and decreased power and water costs.

“Our apartments were sold more quickly thanks to applying green criteria in our design," Bách told Việt Nam News. "The rapid sale offset for the higher cost of greening our apartments and reducing marketing costs."

Bách said customers at their projects saved  二 五 per cent on electricity and  三 六 per cent on water bills.

“In addition, the long-term value for developers of greening their projects is that their brand will carry more value thanks to good products,公众he said. "International organisations and foreign partners will want to co-operate with our company."

Green buildings are more attractive to home buyers, according to Cường. He suggested the Government have preferential credit and land fund policies for investors who build environmentally friendly housing. — VNS