Hanoi (VNS/VNA) - Property developers are racing to increase added valuefor their projects to attract buyers as competition becomes increasingly harsh.

According to Nguyen Do Dung, managing director at Singapore-based urbansolution consulting company EnCity, this competition is shaping new trends inthe real estate market.

Vietnam still has multi-billion dollar urban area projects left deserted, ademonstration of the inefficient use of land resources and investments in thecountry, according to Dung.

He said urban development posed significant challenges to Vietnam and urbanplanning also played a very important role.

According to him, the four areas most important to urban development werebuilding a good living environment, good connectivity with the city centre, diversifiedservices and a good operating model. He said these key factors could push upthe value of new projects.

"A successful urban area needs to be in a good location withtransportation connectivity and regional linkage, an appealing livingenvironment for the community with adequate facilities and green space,diversified products from luxurious to affordable homes to meet demand,adequate services, environmental protection measures and good services,"he said.

“Still, the most important thing is to provide good services for residents,” Dungsaid, adding that developing a property project involves building a community,not just building houses.

According to Yoon Young-kim, Schneider Electric’s Country President for Vietnam,Cambodia and Myanmar, technology was also shaping a new trend in propertydevelopment as smarthomes increase in popularity.

He said he expected the smarthome market to reach nearly 53.45 billion USDglobally by 2022.

In Vietnam, the internet and smarthome technologies have changed the marketover the last decade. Kim believes the property market will see a rapidincrease in the number of smarthomes within the next few years.

Rapid urbanisation had also necessitated the optimisation of energyconsumption, making green development an emerging trend, he said.

“Always go with technology if you want to take the lead,” said Kim.

Stephen Wyatt, General Director of Jones Lang LaSalle Vietnam, said developerswould focus more on market demand, meaning the market should see an increase inthe supply of affordable homes.

Micro-apartment units are becoming more and more popular, he added.

Wyatt pointed out that e-commerce would have considerable impacts on the realestate market in the coming years.

The retail propertymarket will face a number of challenges in the era of e-commerce, he said.

Tourism property in Vietnamshould also develop significantly as the country strives to boost the tourismindustry, Wyatt said.

Le Hoang Chau, President of the HCM City Real Estate Association, said locationwas likely to remain the decisive factor in the added value of propertyprojects over the next several decades.

The second factor was the development of green and environmentally friendlybuildings – which help save energy and resources – and smart homes, Chau said,adding that service quality comes next.

According to Han Manh Tien, President of the Vietnam Association of CorporateDirectors, the market is witnessing significant efforts by developers tointroduce new products with diversified facilities and high-quality services,as well as the formation of multi-functional urban complexes and theapplication of advanced technologies in property development.

Tien said the pressure from rapid urbanisation also requires propertydevelopers to be more creative in adding value to property products to meet theincreasing demand of buyers and urban management requirements.-VNS/VNA