Changes demographics and lifestyles, the development of new technology that enable “smart homes” and better knowledge about the real estate market are changing how consumers are buying real estate in Vietnam and are all factors that are dramatically changing the real estate market and creating new business opportunities.
At the recent “Wise Choice” real estate conference Nguyen Xuan Quang, CEO of Nam Long Investment JSC, a real estate developer, noted that 10 years ago consumers bought big houses that could accommodate three generations of a family and that could be used for both business and residential purposes.
Nguyen said, “Now it has changed. Consumers are mostly young people who focus on choosing a house to live and they care about the living environment. And the house they buy is just for one and two generations.”
As demographics change, young well-educated Vietnamese who are earning good money have changed their idea of the kind of home they want to live in. They want homes that are comfortable, modern, provide value added amenities such as children’s areas, gyms, swimming pools and parks and have convenient access to shopping. The want to live in areas that create an enjoyable living environment and that are friendly to their health.
Luu Thi Thanh Mau, CEO of Phuc Khang Investment and Construction JSC said, “a change has been shown in consumer demand and knowledge.” Another developer at the conference noted that “Vietnam is undergoing urbanization and the population is young so the demand is high so there is huge room to develop homes that are both comfortable, green and smart.
As an acknowledgement of the shift in consumer requirements, green housing has increased in Vietnam during the last 5-years and although there are more than 100 green housing construction projects in development, this is still a smaller number than other countries in the region such as Singapore.
In the business area, experts at the conference discussed the concept of co-working spaces and their development. Co-work spaces have been developed in major cities such as Hanoi, Da Nang and Ho Chi Minh City and have an appeal to young Vietnamese business entrepreneurs and start-ups. Experts in co-working environments urged developers who build offices to invest in co-working spaces and said that they expect co-work spaces to rapidly spread to other cities in the years to come.