(Construction) - With a decade-long legacy, the PropertyGuru Vietnam Property Awards is recognized as one of the most prestigious and enduring accolades in Vietnam's real estate sector.
Mr. Douglas Snyder, a distinguished member of the judging panel for the PropertyGuru Vietnam Property Awards and Executive Director of the Vietnam Green Building Council, recently shared his insights on the evaluation criteria for the awards and the increasing significance of sustainability in the real estate industry.
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| Mr. Douglas Snyder, the Executive Director of the Vietnam Green Building Council, will serve as a member of the judging panel for the PropertyGuru Vietnam Property Awards. |
Reporter: How should we define sustainable real estate? How do the factors contributing to sustainability vary across different types of real estate?
Mr. Douglas: The concept of sustainable real estate originated in the United Kingdom and began to gain rapid traction globally by the mid-2000s. Since then, many countries have established Green Building Councils (GBCs).
While there are universal metrics for green buildings, each country has developed its own assessment system. For example, Vietnam utilizes the Lotus rating system, Singapore employs Green Mark, Australia has Green Star, and the United States adopts LEED.
Although the strategies for large-scale sustainable construction tend to be aligned, smaller projects often implement simpler approaches.
Reporter: What are the current consumer sentiment trends regarding green and sustainable real estate? What is your forecast for this trend in the future?
Mr. Douglas: The current outlook is quite positive. Market surveys indicate that approximately 90% of Asian consumers, regardless of their demographic, are willing to pay a premium for sustainable products. This trend is also evident in the real estate sector, where a significant 70% of Grade A and Grade B offices are aiming for green building certifications by 2026.
Reporter: The benefits of green buildings stem from the synergy of two factors: they help products achieve better selling prices and optimize operating costs compared to traditional products. How does this dynamic differ between Vietnam and other countries?
Mr. Douglas: There is a common misconception among investors and developers that sustainable buildings are prohibitively expensive. However, the typical cost premium is only around 2%, rather than the 20% or 30% they may assume. This trend is consistent globally, including in Vietnam. For instance, some green projects in Vietnam have construction costs that are merely 2% higher, with a payback period of four years. In cities like Ho Chi Minh City and Hanoi, green office rents are typically about 8% higher. Moreover, given the impacts of climate change, we will require more sustainable buildings in the future.
Reporter: As a member of the judging panel for the PropertyGuru Vietnam Property Awards, could you elaborate on the role of the Awards in promoting sustainable development within Vietnam's real estate sector?
Mr. Douglas: With its high-profile platform, PropertyGuru plays a significant role in raising awareness of the sustainable development trend within Vietnam's real estate sector. The PropertyGuru Vietnam Property Awards provides an excellent opportunity to encourage businesses to embrace sustainability. Last year, the introduction of green assessment categories and the green property development awards marked an excellent leadership initiative by PropertyGuru. This year, we are expanding our focus to include ESG criteria, recognizing developers who are making significant strides in sustainable design, construction, energy efficiency, and social impact.
Through these awards, we are privileged to be part of the journey towards sustainable development in Vietnam’s real estate sector.
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| PropertyGuru Vietnam Property Awards 2023 Gala Event |
Reporter: Can you share which sustainability criteria are highly valued at the PropertyGuru Vietnam Property Awards?
Mr. Douglas: Our evaluation is based on a comprehensive set of criteria, which includes sustainable design and construction, social responsibility, and more. Renewable energy and energy efficiency are two key complementary factors. Additionally, we consider the use of sustainable and natural materials, sustainably sourced materials, and water efficiency.
Beyond that, our evaluation criteria also encompass workplace safety, and for social impact, we look at engagement with the local community and disaster relief efforts. We hope to see an increasing number of projects that meet these criteria and are recognized at our awards.
Reporter: In your opinion, what benefits can winning the PropertyGuru Vietnam Property Awards bring to real estate projects and developers?
Mr. Douglas: The PropertyGuru Vietnam Property Awards provide numerous benefits to winning businesses. We not only acknowledge achievements based on traditional criteria, such as design and construction excellence, but also emphasize sustainability. Winners in the sustainable development categories will convey significant value, including a commitment to environmental protection.
Through these awards, they can effectively demonstrate their dedication to creating environmentally friendly spaces in Vietnam, thereby gaining a competitive edge in embracing ESG - a global business trend.
Reporter: Thank you for sharing!
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