From Township to Downtown – Global Real Estate Trends, including Vietnam
In recent years, many "townships" like this have been formed in many major cities around the world, creating a new trend of real estate investment. This model is becoming the mainstream of the real estate market in many countries, including Vietnam.
THE CHARACTER OF SECOND DOWNTOWNs
In the face of increasing pressure on infrastructure plus the demand for a high-class living environment of the super-rich, well-planned closed urban areas with all the amenities of a "miniature city" located in suburban city was born in turn. These townships attract residents to live and do business and quickly become the new downtown of that place, sometimes even busier and more modern than the existing downtown.
To do this, in their planning and design strategy, township developers always focus on sustainability, integrating as many utilities as possible to make these new urban areas attractive. It attracts residents in neighboring areas to live, work, play, and entertain, and quickly becomes a dynamic new downtown.
With the advantage of planning, the new downtown areas often have convenient locations, famous iconic works to take advantage of the advantages of traffic, especially arterial roads such as metro, highways or highways. harbor so that residents can move to schools, hospitals, shopping centers easily and conveniently.
Following this model, Marina Bay Sands in Singapore quickly became the new downtown of the island nation as soon as this project was completed in 2010. With the advantages of planning, integrating many utilities, connecting traffic With most types of transportation, this area has become a place to live, work and study 24/7 of residents here.
Not only the new downtown of Singapore, this area is becoming an international "city", attracting residents from all over the world to live. In order to meet the green living needs of demanding global citizens, buildings at Marina Bay Sands achieved the highest score of Green Mark certification, and energy consumption decreased by 25-30%. This is also a plus point to help this place attract residents to quickly become the new downtown of Singapore.
PALM JUMEIRAH – THE MODEL OF MODERN TOWNSHIP
In Dubai, Palm Jumeirah was built and positioned to become the most luxurious "economic, financial and resort center" in the world. With a unique design, the artificial palm-shaped island has become home to 80,000 people from more than 70 countries and territories, according to data compiled by CNN in 2021.
With the original goal of reducing infrastructure pressure on the old downtown and developing tourism, Palm Jumeirah, a township formed near an arid desert in Dubai, has become a symbol of the global super-rich and is a place that integrates many types of services, commerce, entertainment, tourism and resort.
Today, almost anyone who comes to Dubai can't help but come to this island built at a cost of 12.3 billion USD. Palm Jumeirah is one of three artificial palm-shaped islands in Dubai. Construction of these islands began in 2001. By the end of 2011, the construction of Palm Jumeirah was completed.
It can be said that this is an iconic work and creates a brand for the city of Dubai. When it comes to artificial palm island, people will immediately think of this most luxurious country. Palm Jumeirah, one of the world's boldest innovations, has become a paradise for the super-rich and those who love to travel.
Why say this archipelago is the most ideal place to vacation when coming to Dubai? Because, this township is a miniature world with full facilities from restaurants, hotels, shopping, entertainment,… And the artificial island of Dubai is also located near the prominent sightseeing locations of this country. .
Palm Jumeirah is a place that is worth a visit for those who love to explore and visit once in a lifetime. Since its inception, the township with more than 2,000 villas and 6,000 apartments has become the gold standard for development projects near the sea in the world.
Although not located in the heart of a city famous for its luxury like Dubai, Palm Jumeirah is considered the most important downtown in the Arab country.
Today, real estate in the Palm Jumeirah area has become the most desirable property in Dubai. In just the first 10 months of 2021, property prices in this township have increased by 21%, a record high, according to Ata Shobeiry, CEO of Zoom Property.
This expert said that the demand for real estate in this globally iconic township is very high and will increase in the near future, as this area is integrated with many utilities, well planned to meet the needs of customers. want to enjoy the high-class lifestyle of the super-rich.
“Once the infrastructure in Vietnam is completed, we believe that there will be many real estate developers investing in this trend,” said Mr. JLL Vietnam, comments.
“However, one of the biggest challenges for township developers lies in their ability to create distinct and unique value through their own design and standards,” he adds.
THE COMMERCIAL VALUE OF NEW DOWNTOWNs
Not only Palm Jumeirah, all the downtown areas with high population density have had a huge increase in real estate prices in the area and the rate of return is much higher than those outside.
Reality has proven that residents living in closed residential areas also need friendly, like-minded, high-class neighbors to be able to support each other in difficult times, especially in emergencies. such as medical problems during the recent pandemic outbreak.
The "mini-cities" are always equipped with advanced security systems to ensure the safety of residents, so townships are often the safest residential areas. In addition to factors related to design, amenities, people, brands also contribute to the outstanding value of real estate located inside a township.
In fact, real estate in townships is always more expensive and has a faster growth rate than real estate outside in the same area. With good planning, full facilities and the symbolism of a miniature city, real estate inside township has become the most optimal type of property for real estate investors.
Compared to other areas, the selling price of villas, townhouses or apartments in Palm Jumeirah palm island continuously set new peaks, many times higher than when the new project was completed. The latest survey results of Knight Frank show that, not only has the selling price continuously set new records, but the number of successful real estate transactions in this township has reached the highest level in the past 5 years.
The Palm Jumeirah area is the place that best demonstrates the excitement of the high-end real estate market in Dubai when the average transaction price here reached the highest level in the past 5 years, said Faisal Durrani, Head of Research. Knight Frank's Middle East market research.
The pandemic has shown us the importance of a closed urban area when the elite want a place to live with luxury space and relative privacy. This demand has led to an impressive 40% increase in villa prices in Palm Jumeirah over the past four years, according to Knight Frank.
Recently, a villa on the island of Jumeirah Bay was sold to a European guest for 32.9 million USD. Not long ago, the most expensive villa on this artificial island sold for more than 30 million USD.
In the second quarter of 2021, only 90 villas were sold from this township, but these transactions contributed 13.5% of the total 15.8 billion AED. Thanks to its unique and iconic design, Palm Jumeirah is quickly becoming Dubai's new downtown and home to the city's most desirable real estate.
Built on an abandoned site, Marina Bay Sands has quickly become Singapore's second downtown. According to the island nation's Bureau of Statistics, land prices in Marina Bay have increased by 421% since the area was developed.
THE GLOBAL CITY LOCATION BECOME THE 2nd DOWNTOWN OF HCMC.
The success story of Palm Jumeirah, Marina Bay Sands… has created the impetus for the trend of real estate development following the township model in Vietnam.
However, now the land fund to build townships located on the outskirts of the city has been exhausted. Land near the city center large enough to develop an urban area is even rarer.
Built on a rare large area of land near the city center, The Global City, the first township project of the branded real estate developer Masterise Homes, is positioned to become the new downtown of HCMC. and Thu Duc city. Because the township has an area of 117.4 hectares, it is located quite close to the city center.
The Global City is oriented to become a diversified and modern urban complex, with full comprehensive facilities of a most modern city center in the future. Keeping pace with the trend of township formation in the world, The Global City is designed in the direction of its own urban spirit, its own target audience and investment according to international standards.
“The Global City has a unique taste, world-class planning combined with excellent infrastructure. We clearly see townships like these becoming major commercial centers and raising living standards to new heights. Once completed, this part of Thu Duc City will definitely become the heart of the southern economic province,” shared Mr. Thy Truong when talking about the township being formed in Thu Duc.
To achieve the above goal, Masterise Homes invests heavily in its first township project by cooperating with world leading partners such as Foster + Partners architectural consultant, WATG landscape design, Tung Construction Engineering Feng and Project Supervisor Artelia.
Notably, Foster + Partners is a giant in the world of architectural and urban design. This is the unit that has designed iconic works such as The Gherkin tower (London), The Hearst Tower (New York), Apple headquarters (California).
Urbanization and rapid population growth put enormous pressure on infrastructure. However, at present, the biggest difficulty of investors is not capital but land fund to develop townships near the city. When land prices rise, finding the right land fund for project implementation is still a big challenge for real estate developers.
Like many cities in the world, Ho Chi Minh City is facing many challenges to become a modern city while maintaining sustainable economic, social and environmental development. The city is under great pressure with a dense population, population imbalance, overloaded infrastructure of industrial parks and production zones, frequent traffic congestion and environmental pollution problems. .
Contact The Global City via:
Address: Front of Do Xuan Hop, District 2, City. Thu Duc, HCMC
Model house: Roundabout A12 Vu Tong Phan, An Phu Ward, City. Thu Duc, City. HCM.
Hotline/Zalo: 0911 525 454
Project official website: https://theglobal. vn/
