A computational analysis of construction – operation – environment cost of real estate development projects

Abstract

Similar to many highly populated cities in South East Asia, Ho Chi Minh City (HCMC) is the largest city of Vietnam acting as the economic driver for the whole country. Its urban life attractions and economic opportunities have drawn people across the country and the region, resulting in a high demand of housing. HCMC becomes a hot spot for many local and foreign real estate investors and developers. Many property development projects in HCMC have been rapidly increasing in recent years. However, many real estate developers usually pay more attention on profit-related criteria while neglecting sustainable aspects, partly due to lack of knowledge and an appropriate tool. A construction - operation – environment cost analysis workflow based on an urban simulation tool coupled with other scripting and modelling tools is proposed to quantify environmental cost and operational cost besides construction cost for a real estate development project in HCMC. Three alternative design scenarios are derived from a baseline at the early stage of design process originally provided by a developer. Computational analysis from these scenarios on construction cost in comparison to operational and environmental cost provides more information to the investment decision making process allowing the developer not only to meet their investment return expectation but also to take environmental impact and residents’ expense during the project’s life cycle.