Smart townships mushroom in Vietnam
25/05/2019 09:59 | Source:
During the first months of 2019, Hanoi and Ho Chi Minh City (HCMC) witnessed the flourishing of smart townships. The use of new technology platforms in real estate development inevitably creates new market data, enabling customers to easily access products and markets. This is the key overall real estate transparency in Vietnam.

A report released by JLL on Friday noted smart townships are seeing significant popularity that has directly led to many changes in Vietnam’s real estate market.

JLL’s report said Ho Chi Minh City and Hanoi have among the youngest, most tech-savvy populations globally. Vietnam’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.

Smart townships in Vietnam
Many smart townships have been developed across Vietnam

Smart townships launched by developers have achieved high sale rates. For example, Hanoi’s rela estate market has welcomed more than 10,000 smart units with sale rates of approximately 70 per cent on average since the first launch of smart township in 2016.

Local property developer the Sunshine Group, as a pioneer of this revolution, 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 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.

Property giant 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.

In the upcoming time, projects such as BRG Smart City in Hanoi, Ecopark Smart City in Hung Yen, 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, 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, JLL noted. Moreover, technology that is not pragmatic and does not enhance efficiency or livability for users may not take off.

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