Hanoi (VNS/VNA) - Green buildings provide more benefits for investorsin the long term than normal buildings and reduce the economic burden for low-and middle-income families, according to general secretary of Vietnam RealEstate Association (VNREA) Nguyen Viet Chien.

Chien spoke at a workshop in Hanoi on July 26 about the costs and benefits ofgreening the affordable housing sector. He said investing in affordable housingprojects would bring positive results for developers. The market segment couldensure 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 threeyears as real demand for the segment was always more than 80 percent,” he said.

A VNREA survey showed that housing demand for the middle- and high-end segmentwith selling prices of more than 25 million VND per square metre only accountedfor 20 to 30 percent and was mainly focused in big cities. Meanwhile, demandfor affordable housing priced below 25 million VND per square metre accountedfor 70 to 80 percent. However, there was not enough affordable housing to meetdemand.

The association predicted that with the rapid urbanisation rate, 40 percent of Vietnam’spopulation of 100 million people would live in urban areas by next year. Bigcities with populations of more than 1.7 million people would struggle toprovide accommodations for everyone. To meet demand, the country needs to buildabout 700,000 apartments by the end of next year.

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

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

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

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

Vu Hong Phong, a specialist on green buildings at the International FinancialCorporation, said Vietnam could make green construction much cheaper. Indeveloping countries with rapid construction, the use of EDGF – a greenbuilding certification system focused on making new residential and commercialbuildings more resource-efficient – can help overcome market shortcomings whileonly driving construction costs up by one or two percent.

Trinh Tung Bach, Director of the Research and Development Department at CapitalHouse Group which received the EDFG certification for its EcoHome 3 affordablehousing project, said those who live in green buildings enjoy a more convenientlife, improved health and decreased power and water costs.

“Our apartments were sold more quickly thanks to applying green criteria in ourdesign," Bach told Viet Nam News. "The rapid sale offset for thehigher cost of greening our apartments and reducing marketing costs."

Bach said customers at their projects saved 25 percent on electricity and 36 percenton water bills.

“In addition, the long-term value for developers of greening their projects isthat their brand will carry more value thanks to good products," he said."International organisations and foreign partners will want to co-operatewith our company." – VNS/VNA