‘Leverage’ For Green Property

Many investors are reluctant to do green building due to concerns about rising costs, although in terms of long-term benefits, green building will bring economic sustainability as well as environmental protection.

At the talk on “Green Real Estate: Trends or Trends?” By real estate investment magazine, CafeLand held on 20 September in Ho Chi Minh City, Prof. Dang Hung Vo, former Vice Minister of MONRE, The idea of green development has become an indispensable trend in developed countries around the world. A range of green building solutions and standards have been specifically identified for the gradual introduction of renewable energy solutions, limiting the use of energy produced.

As in Singapore, even social housing is required to meet a certain green rate as prescribed. But in Vietnam, the green real estate is still in the form of temporary fads. Currently in Vietnam has formed a number of projects with consistent green development philosophy as Phu My Hung in Ho Chi Minh City or Ecopark in Hanoi. These units have selected a reasonable land area for a reasonable green investment, developing connection infrastructure to enhance value.

Experts and businesses that need to support the conditions, there are criteria for green property development.

“This is a very good thing, but careful consideration of these projects just ensure the green area of the water surface, bringing green environment for the people, but other factors of energy, using water is not yet called standard, “he said Vo, said the number of green buildings in Vietnam is limited because the green property criteria are almost none. In addition, higher investment costs and higher costs also put pressure on both investors and consumers.

As a direct developer of green property projects, Ms. Luu Thi Thanh Mau, General Director of Phuc Khang Corporation, said that initial green building costs increased by about 10% to meet the criteria set. (LEED standard) but save in the long run. In it, the efficiency decreases by 30% using water and at least 20% by energy.

Mrs. Mau said that in order to promote the development of green buildings in Vietnam, there should be preferential loans for enterprises to develop raw materials for domestic raw materials, so that enterprises can Use materials in the water, reducing the cost of transportation. On the customer and consumer side, low-income tax incentives can be offered if they buy green instead of normal. There is also a tax incentive for businesses investing in the green real estate.

Currently, the green property is less interesting.

Mrs.Le Thi Tu Anh, General Director of Nha Trang Green Hill Company, also said that if want to do green real estate, businesses need a large land fund, must pay more investment costs, so the government should have incentives land use tax and corporate income tax to encourage businesses to boldly do.

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According to experts, in addition to changing the minds of investors on the analysis of investment costs and benefits on a long-term basis, it is necessary to provide policy support to promote the development of green buildings. In particular, there is the formation of specific technical regulations on a green property.

In the immediate future there should be a program on how to develop a green property, need to give priority policies to support, offset the cost for the green project investors such as may exempt some taxes. It’s a long way to go.

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