Sustainable Real Estate: From Green Building Design to Efficient Operations
Savills Vietnam
The real estate advisor of choice in Viet Nam, empowering you to maximise your real estate outcomes.
Advantages of Green-built and Operated Properties?
According to a report released on 9 June by the European Union's Copernicus Climate Change Service, the summer of 2024 was recorded as the hottest since 1940. The Ministry of Natural Resources and Environment indicates that rising temperatures, prolonged heatwaves, air pollution, and other extreme weather phenomena have had negative impacts on human health. For every 1°C increase in average temperature, hospitalisation rates for children under five due to respiratory infections increase by 3.8%. Climate change also facilitates the spread of disease vectors, increasing the risk of outbreaks.?
Given this situation, governments and businesses worldwide, including Viet Nam, have increasingly focused on sustainable development. At the 26th United Nations Climate Change Conference (COP26), Prime Minister Pham Minh Chinh committed to net-zero emissions for Viet Nam by 2050, alongside 167 other countries. This commitment has strongly driven the focus on sustainable development across various sectors, including real estate.?
Although starting later than other countries in the region, Viet Nam has made remarkable progress. According to the Viet Nam Green Building Council (VGBC), by the end of 2019, the number of green buildings in Viet Nam was only one-third of Thailand’s and one-fifteenth of Singapore’s, with 70 projects. However, in recent years, the number of green projects in Viet Nam has increased significantly. According to the Ministry of Construction, there were over 400 recognised green projects as of 2024, far exceeding the initial target of 80 projects by 2025, demonstrating the efforts of the entire real estate industry.?
Tran Ngoc Duy, Deputy Director of Property Management at Savills Ha Noi, stated: “To be recognised as a green building, projects must meet environmental performance standards and energy-efficient operations in addition to sustainable construction design and building materials.”?
Duy added: “Embracing the green trend will help developers attract and retain customers, achieve faster occupancy rates, and offer better pricing. Green projects not only serve the global and government's common goals of sustainable development and environmental protection but also meet the actual needs of people. After the COVID-19 pandemic, people are increasingly concerned about healthcare, living and working environments, along with sustainability factors.?
Additionally, although the initial construction costs for green buildings may be higher than traditional projects, sustainable operations offer better operational efficiency and cost savings, especially in reducing energy consumption.”?
Key Factors in Operating Green Projects?
The Deputy Director of Property Management noted: “To achieve sustainable development throughout the project's operation, developers, property management, and residents need to closely cooperate and implement green building and management solutions.”?
Developers and property management should implement energy-saving measures in line with green operation criteria based on reputable certifications. Currently, there are four popular green building certifications: LEED, EDGE, WELL Building Standard, and LOTUS. These certifications define practical operational solutions for green projects, focusing on energy efficiency, water conservation, air quality improvement, and ensuring health and safety of users.
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Energy Efficiency:??
Optimising electricity usage will help reduce operating costs and ensure the project’s sustainability. According to Savills experience in managing and operating green projects, low-efficiency lights have been replaced with LED lights, reflective bulbs, and long-lifespan halogen bulbs, ensuring consumption below 20 watts/m2. Air conditioning systems are also optimised. “Adjusting the temperature in common areas by just 1°C can save up to 10% of the energy used for cooling or heating the building,” Duy added.?
Water Conservation:??
Water management is implemented through various conservation measures, such as adjusting the water flow rate at faucets to around 3.5 litres/minute and optimising toilet flushing levels at 4.5 litres?per flush, as well as reusing natural water sources such as rainwater. According to Savills data, water optimisation solutions have helped office projects save 17% of water consumption per m2 of usable area. For residential projects, this figure has reached a 3% reduction, contributing to the efficient use of water resources in real estate management.?
Air Quality:??
Indoor air quality is given special attention. Projects are equipped with ventilation systems that supply fresh air along with air filters to reduce coarse dust. Currently, air quality in major cities, especially Ha Noi, is continuously in an alarming state. The air quality index is often poor, and the concentration of fine dust is almost twice the standard level. Green projects equipped with advanced air filtration systems meet green standards and contribute to protecting residents’ health.?
Maintenance and Technical Optimisation:?
Managing a green project also requires attention to various other aspects, such as optimising technical system operations through assessments and parameter adjustments, creating reasonable maintenance plans, applying energy management systems and software, and improving thermal and acoustic insulation. Duy emphasised: “Operating a green project is a persistent and continuous process, requiring planning and a rational approach according to reputable standards and certifications.”?
Community Engagement:??
For tenants and residents, as the main group using utilities and consuming energy in buildings, it is crucial for developers to encourage them to participate in long-term green strategies aiming for ESG goals, such as reducing plastic waste and sorting garbage at the source. For example, the management board can implement many direct communication methods, such as weekly banners or bulletin boards, or online through smart applications This way, tenants will gradually understand their responsibilities and be willing to collaborate with the building for a sustainable environment.