The liveliness of sidewalks in Ho Chi Minh City and its impact on property values in mixeduse neighborhoods. The liveliness of sidewalks in Ho Chi Minh City and its impact on property values in mixeduse neighborhoods. The liveliness of sidewalks in Ho Chi Minh City and its impact on property values in mixeduse neighborhoods. The liveliness of sidewalks in Ho Chi Minh City and its impact on property values in mixeduse neighborhoods. The liveliness of sidewalks in Ho Chi Minh City and its impact on property values in mixeduse neighborhoods.
INTRODUCTION
Problem statement
Sidewalk management is a significant concern for authorities and researchers globally, including in Vietnam Historically, sidewalks have been viewed primarily as transportation spaces (Gehl, 1987; Amin, 2008; Dempsey, 2009) In North America and Europe, governments prioritize the planning and design of pedestrian-friendly sidewalks (Loukaitou-Sederis and Ehrenfeucht, 2009) Similarly, municipal governments in Vietnam, particularly in Ho Chi Minh City, aim to plan and maintain sidewalks for pedestrian use Recently, some U.S cities have embraced a trend known as Do-it-yourself urbanism, promoting mixed-use sidewalks for commercial, decorative, and public purposes (Douglas, 2019; Talen, 2015) In Vietnam, sidewalks are increasingly utilized for various functions, including traffic, commerce, social interaction, and household activities Addressing the conflicts in sidewalk usage planning is crucial for effective management in urban areas.
Sidewalks serve as vital public spaces within urban environments, yet they are often dominated by various forms of transportation, including pedestrians, motorcycles, and parking areas This dual role highlights the complexity of sidewalk usage in urban studies, emphasizing the need for a balanced approach to public space management.
In recent decades, public spaces in urban areas of developed countries have typically included parks, recreation areas, sports facilities, squares, streets, and sidewalks, although sidewalks have often been overlooked as vital public spaces (Whyte, 1980; Gehl, 1989; Carr et al., 1992; Cooper-Marcus & Francis, 1998; Banerjee, 2001) However, sidewalks play a crucial role in daily life at the neighborhood level, contributing to social, cultural, economic, and environmental values that enhance the attractiveness of urban areas for living and working (Chitraka, 2016; Mehta, 2006; Loukaitou-Sideris & Ehrenfeucht, 2009; Andersson, 2016; Holland et al., 2007; Sennett, 1992; Thomas, 1991; Lofland, 2017; Williams & Green, 2001).
Asian urbanism uniquely emphasizes public spaces like streets and sidewalks, contrasting with Western studies that focus on open spaces and squares (Heng, 1999; Sassen, 2011) Current research primarily examines the socio-cultural dynamics of sidewalk usage, revealing that many household activities, typically confined to domestic spaces, occur outdoors in public areas across Asian countries (Edensor, 1998; Yasmeen, 1996) In Vietnam, public spaces serve domestic purposes while homes are often repurposed for commerce (Drummond, 2000) Notably, street frontage is a valuable asset in Vietnamese property considerations, allowing for expanded domestic activities or small business operations (Garnett, 2008; Loukaitou-Sideris & Ehrenfeucht, 2007) Ho Chi Minh City's sidewalks are distinct, reflecting a vibrant urban life from morning to night (Kim, 2012; Drummond, 2000; Harms, 2009) Additionally, public spaces in the city, including parks and squares like the one in front of the Ho Chi Minh Mausoleum, are utilized for leisure and recreational activities, further enhancing the urban experience (Drummond, 2000).
Research indicates that the vibrancy of sidewalks in cities, particularly in Vietnam and regions like South America and Southeast Asia, may have beneficial social and economic effects (Drummond 2000; Harms 2009; Kim 2012; Eidse 2011) However, many studies have focused on the sociocultural aspects of public spaces and sidewalks in Vietnam, often neglecting their economic implications While sidewalks serve as vital public spaces for social interaction, there remains a significant research gap concerning their economic impact and underlying mechanisms This study aims to explore whether sidewalks can achieve a quality comparable to that of parks or community playgrounds, how to measure this quality, and whether the quality of sidewalks as public spaces influences neighborhood property values.
Liveliness is a crucial concept in public space studies, significantly influencing sidewalk usage and economic activity (Drummond, 2000) Its definition varies based on the authors' perspectives and research objectives, making it challenging to measure (Mehta, 2014; Kim, 2012) Liveliness encompasses various activity levels, including participation, interaction, communication, trading, and representation through external activities Consequently, understanding and analyzing the liveliness of public spaces is essential for recognizing the dynamics of people and activities within these environments.
Lively public spaces are characterized by diverse and interactive activities, as highlighted by Jane Jacobs in 1961 She emphasized that vibrant sidewalks embody both vitality and diversity, showcasing a mix of physical features, economic activities, and social interactions Longer durations of activity on these sidewalks enhance their significance and safety When sidewalks are integrated into the public space, they contribute to a lively urban environment, ultimately fostering urban vitality and prosperity in urban planning and design.
The vibrant use of sidewalks significantly contributes to the social and economic fabric of cities, highlighting the need for effective sidewalk management This study focuses on the diverse activities occurring on the sidewalks of Ho Chi Minh City (HCMC), engaging participants of all ages, genders, incomes, and occupations It includes both local residents and visitors utilizing these public spaces Importantly, the research does not address issues of ownership or control over the sidewalks, leaving questions about who owns, manages, or incurs costs for using these areas unanswered.
The first research objective focuses on evaluating the quality of sidewalk segments across various districts by calculating their liveliness index This index is derived from surveys and observations of key activities on the sidewalks, assessing both the diversity of these activities and the level of public engagement To enhance the liveliness of sidewalks in Ho Chi Minh City (HCMC), it is essential to organize events, commercial activities, and social gatherings during both daytime and nighttime A strong correlation exists between property usage, the activities conducted, and the products offered, which is crucial for attracting more users to the sidewalk areas (Shuhana et al., 2004).
Homeowners in Ho Chi Minh City recognize that sidewalks can enhance economic value by transforming into public spaces, yet this potential is largely ignored in economic literature While existing studies have explored sidewalk usage in Vietnam, both by local and international scholars, there is a notable absence of research directly assessing the impact of sidewalks on property values in mixed-use neighborhoods This gap presents an opportunity for the author to conduct a survey and evaluate the relationship between sidewalks and property value.
Research indicates that street infrastructure and design significantly affect property values, with studies highlighting the role of traffic noise and street width in determining house prices (Gonzalez-Navarro, 2010; Seo et al., 2018; Fullerton & Villalobos, 2011) For instance, Larsen (2014) analyzed house prices on arterial versus collector streets, while Xiao (2014) explored the interplay between street layout, width, congestion, and housing prices in Nanjing from 2005 to 2010 Additionally, some studies utilize geographic variations to proxy sidewalks, further illustrating their impact on property values (Cho et al., 2008; Shin et al., 2011; Li et al., 2015).
Recent studies in Asian countries, such as those by Xu et al (2016) and Deng et al (2016), have explored the relationship between transit systems and property values, specifically in Wuhan and Beijing However, there is a research gap regarding the direct impact of sidewalk quality on property values, which this study aims to address as its second objective Sidewalks play a crucial role for businesses, including retail and restaurants, by serving as parking spaces, areas for spillover activities, and display zones for promotions In Vietnam, properties adjacent to sidewalks are particularly valuable, as they enhance business visibility and opportunities The extensive use of sidewalks in major urban areas underscores their commercial significance (Kim 2012; Nguyen & Han 2017).
Research objectives
This study has two main research objectives, with specific research objectives as the following:
Objective 1 To measure the quality of sidewalk in HCMC by capturing sidewalk liveliness as a quality dimension.
Objective 1.1 To specify and construct a commonly used measure of quality for sidewalks, the liveliness index.
Objective 1.2 To investigate the relationships between the conditions of sidewalks and the liveliness index of sidewalks.
Objective 2 To examine the impact sidewalk quality on property values in mixed- use neighborhoods in HCMC.
Objective 2.1 To examine the impact of the liveliness index in each sidewalk- segment on property values.
Objective 2.2 To investigate the impact of sidewalk characteristics on property values.
Objective 2.3 To investigate the impact of use condition of houses adjacent to sidewalks on property value.
Research questions
Belong to the two main research objectives, the specific research questions as the following:
Research question 1 (RQ1) How to measure the quality of the sidewalk in HCMC by capturing sidewalk liveliness as a quality dimension?
RQ1.1 How to specify and construct a commonly used measure of quality for sidewalks, the liveliness index?
RQ1.2 What are the relationships between the conditions of sidewalks and the liveliness index of sidewalks?
Research question 2 (RQ2) What is the impact sidewalk quality on property values in mixed-use neighborhoods in HCMC?
RQ2.1 What is the impact of the liveliness index in each sidewalk-segment on property values?
RQ2.2 What is the impact of sidewalk characteristics on property values?
RQ2.3 What is the impact of the use condition of houses adjacent to sidewalks on property value?
Research methodology and scope
This section summarizes the data and methodology used to investigate the two research objectives and the empirical findings of this thesis.
The research utilized walk-by and direct observations to gather primary data on activities occurring along sidewalk segments, as well as surveys of single-family house buyers to identify key house characteristics and pricing Prior to the official data collection, pretest observations were conducted on user behavior across 20 randomly selected sidewalk segments in Districts 1, Binh Thanh, District 10, District 5, and Go Vap Additionally, insights were gained from surveying 10 single-family house buyers regarding their decision-making factors The comprehensive official survey encompassed 283 sidewalk segments and single-family homes across 13 districts, forming the basis for analysis and reporting in this thesis.
The thesis has two main objectives that employ distinct analytical methods The first objective utilizes behavior mapping, including walk-by and direct observations, to explore how sidewalks can transform into vibrant public spaces in Ho Chi Minh City (HCMC) The second objective applies the Hedonic pricing model to assess the value premiums that sidewalks contribute to residential property values in mixed-use neighborhoods within HCMC.
This research focuses exclusively on the quality of sidewalks, examining access and usability while deliberately excluding ownership and control issues due to the complexities present in Ho Chi Minh City's sidewalks The study is framed around two key perspectives: the social perspective, which aligns with research objective 1, and the homeowner perspective, which corresponds to research objective 2.
Research contributions
This research is expected to have some significant contributions the economic literatures in the following:
The thesis highlights the significant yet often overlooked role of sidewalks as public spaces in Ho Chi Minh City (HCMC) Despite numerous studies on public spaces, sidewalks are frequently excluded from discussions, with researchers failing to treat them with the same importance as other public areas like parks, squares, and commercial centers This gap in the literature underscores the need for a comprehensive evaluation of sidewalks in urban studies.
The second contribution involves creating a formula to calculate the liveliness index of sidewalks, enabling the identification and measurement of sidewalk quality globally Consequently, the author estimated the liveliness index for each sidewalk segment, establishing a standardized measure of sidewalk quality in the context of public spaces in Ho Chi Minh City.
The third contribution highlights the significance of the physical characteristics of sidewalks in defining their quality and liveliness These characteristics, along with the surrounding environment, create spaces where users can engage, interact, and utilize the sidewalks effectively.
The thesis's fourth contribution examines the direct influence of sidewalks on property values using the Hedonic pricing model While numerous studies have explored the relationship between public spaces and property values, few have specifically focused on the impact of sidewalks To address this gap, the author incorporates relevant literature reviews on the effects of public spaces on property value.
The thesis presents a significant contribution by examining how property use conditions directly affect property value, particularly in Ho Chi Minh City (HCMC) A key finding reveals that houses in HCMC can serve dual purposes as rental properties, functioning both as residences and business spaces (mixed-use properties) Notably, frontal houses in central districts are frequently utilized for both commercial and residential purposes, fostering mixed-use neighborhoods that encourage interrelated business activities.
The thesis highlights that the business activities of neighboring houses can positively influence house prices In Ho Chi Minh City, shophouses are unique structures characterized by two to three or more stories, featuring narrow fronts and extended lengths The ground floor is typically designated for commercial enterprises like shops or restaurants, while the upper floors are primarily for residential use, with some areas dedicated entirely to commercial purposes.
This groundbreaking study aims to enhance our understanding of how the consideration of future consequences influences the economic value of sidewalk effects, serving as the key dependent variable.
Thesis structure
This thesis is composed of two distinct publications submitted to scientific journals, each focusing on various facets of urban planning and property value The thesis text aims to unify these essays into a cohesive work that addresses the research objectives The two research objectives not only guide the structure of the essays but are also collectively addressed in the conclusions chapter.
This thesis is divided into five main chapters:
The initial chapter identifies the research problem and highlights the existing research gap, followed by a clear articulation of the research objectives and questions Subsequently, the author details the research methodology employed and outlines the novel contributions of the thesis.
Chapter 2 The thesis research design
Chapter 2 details the research design applied throughout the two essays that comprise the thesis Before presenting the research process, the author will present some key terms used in this study Next, the author shows the research data including the survey area, methods and process to data collection Next, this chapter presents the research methodology in the two research objectives The conceptual framework is presented at the end of the chapter.
Chapter 3 Essay 1- The liveliness of sidewalks in HCMC
Chapter 3 addresses research objective 1 regarding to measure the quality of sidewalk in HCMC by capturing sidewalk liveliness as a quality dimension A summary of Essay 1 on the calculating of liveliness index of sidewalks and the examining the impacts of the physical characteristics of sidewalks on the liveliness index is provided in this chapter.
Chapter 4 Essay 2 – The impacts of sidewalks on property value in mixed-use neighborhood in HCMC
Chapter 4 attempts to present research objective 2 concerning property value Essay
2 are summarized in Chapter 4 Applying hedonic pricing model, essay 2 investigates the impacts of sidewalks on property value in mixed-use neighborhood in HCMC.
Chapter 5 Conclusions, implications and limitations
The final chapter summarizes the research findings, addressing all objectives and presenting key conclusions It highlights important theoretical and practical implications for scholars, urban planners, managers, and homeowners interested in enhancing sidewalk liveliness and usage Additionally, this chapter discusses limitations that may inform future research endeavors.
THE RESEARCH DESIGN
Research process
The research process is structured into three key steps Step 1 involves an overview that identifies research gaps and problems, leading to the formulation of research objectives and questions This step also details the research methodology, including the development of variables and measures for data collection, which will be utilized in the pilot study.
In the pilot study, the author selects key streets from various districts, categorized into groups: group 1 includes districts 1, 3, and 10; group 2 consists of districts 5 and 11; and group 3 encompasses Phu Nhuan, Go Vap, and Tan Binh districts The street selection relies on a convenient sampling method, without focusing on specific houses Through walk-by observations, the author documents sidewalk activities and user characteristics using photos and videos This survey period also enhances the author's photography skills, allowing for a deeper understanding of sidewalk physical features, activities, and current management practices Field notes are taken, and data collection methods are slightly adjusted for the main study.
The primary focus of this study is to analyze data, draw conclusions, and explore implications regarding the quality of sidewalks and their influence on property values This research not only contributes theoretically by highlighting the significance of sidewalk quality but also offers practical insights for urban planners and homebuyers An overview of the research process is illustrated in Figure 2.1.
Definition of key terms
Public spaces have significant importance in the people’s everyday life (Chitraka, 2016; Mehta, 2006; Loukaitou-Sideris & Ehrenfeucht, 2009; Andersson, 2016;
Public space is defined in various ways due to differing author perspectives and academic disciplines (Holland et al., 2007; Gehl & Matan, 2009) This diversity makes it difficult to establish a single, concise definition However, these definitions can be categorized based on key issues such as ownership, control, access, and use (Mehta, 2014; Mitchell, 1995; Carr et al., 1992; Mandanipour, 2017).
Public space can be defined in two primary ways: first, in terms of ownership and control, which establishes clear boundaries for the subject area; and second, based on access and use, which emphasizes how individuals interact with these spaces.
Public space is defined as publicly accessible areas where individuals engage in group or individual activities, serving as a stage for communal life (Carr et al., 1992) These spaces allow people to play dual roles as both actors and spectators, characterized by their common use and unrestricted access during daylight hours (Brandão, 2017) Citizens contribute to meaningful public spaces by expressing their attitudes and utilizing them for personal purposes (Hajer & Reijndorp, 2001) According to Mehta (2014), public space encompasses open areas for both active and passive social activities, governed by general regulations for use Additionally, it provides a setting where individuals can relax and enjoy their surroundings without any specific agenda (Loukaitou & Banerjee, 1998).
Public space is defined as an area accessible to everyone, where daily activities occur, engaging diverse groups of people across various demographics, including gender, age, and social class This definition emphasizes the significance of how public space is utilized and perceived, as these factors directly influence its usage Daily social and economic activities within public spaces not only enhance community interaction but also play a vital role in economic development, particularly in increasing property values in proximity to these areas.
According to Degree No 171/2013/ND-CP, issued on November 13, 2013, streets within the inner city are defined by red line boundaries established through approved urban planning by competent authorities Additionally, sidewalks are integral components of these urban streets, primarily designed for pedestrian use and coordinated with the urban street infrastructure along the route.
The definition of a sidewalk varies based on its intended conceptualization, often influenced by socio-political characteristics It can be examined from two primary perspectives: the physical, which emphasizes design considerations to ensure sidewalks are safe, comfortable, and functional, and the social, which views urban space as a social product, exploring the underlying factors that shape the physical aspects of sidewalks.
The term liveliness may have different meanings, depending on persperctive of the authors and research objective to define and measure quality of liveliness Mehta
Liveliness is a complex concept that encompasses various levels of activity, including participation, interaction, and representation in public spaces It is defined by the flow and movement of pedestrians, the number of individuals engaged in diverse activities, and the availability of engaging options A lively street is characterized by stable and sustainable social activities, as highlighted by Mehta (2006) According to Montgomery (1998), urban liveliness is measured by pedestrian flows, the diversity of user groups, and the frequency of cultural events, all of which contribute to a vibrant and successful street environment.
Public space, if properly organized, provides the potential for social interaction in everyday life, and as a result, increase our disposition for together (Carr et al.,
In 1992, Jacob emphasized the significance of measuring sidewalk quality based on the level of social interaction it fosters within neighborhoods Sidewalks serve as vital social venues where people connect, and a bustling atmosphere enhances the enjoyment of these encounters Additionally, well-designed public spaces not only boost their appeal but also strengthen community bonds, facilitating individual relationships and ultimately contributing to a vibrant urban life.
Property value is determined by the price agreed upon by buyers and sellers, reflecting the intersection of supply and demand (Varian, 1992) Factors influencing what buyers are willing to pay include their motivation to purchase, negotiation skills, and the condition of nearby properties Key characteristics that buyers consider encompass the structural features of the home, available amenities, neighborhood attributes, and the surrounding natural environment (Rosen, 1974).
This study analyzes the transaction prices of real estate during the 2018-2019 period, reflecting the agreed-upon amounts between buyers and sellers The transaction price indicates the value buyers are willing to pay based on the property's characteristics It is important to note that this research does not account for fluctuations in real estate prices over time or perform comparative analyses related to varying house attributes.
The term "neighborhood" is interpreted differently by researchers and practitioners, with definitions varying based on empirical studies According to Dover and King (2012), neighborhood measures are influenced by factors such as density, population size, integration, and housing types, all of which are affected by climate, economic, and locational conditions An effective neighborhood caters to diverse needs, including housing, shopping, work, and recreational areas, fostering a compact, complete, and connected environment that promotes sustainability and satisfaction Consequently, the concept of a neighborhood excludes single-use, disconnected, and isolated developments.
A neighborhood is defined as a geographically limited area where individuals share services and engage with one another, characterized by three key elements: people, place, and cohesion It is essential to differentiate between 'neighborhood' and 'community,' as the latter refers to a group of individuals united by shared values, beliefs, interests, and culture, transcending geographical boundaries (Chaskin 1997; Keller 1968).
Previous urban planning literature highlights the conceptual nature of neighborhoods, defining them as centralized areas that encompass housing, employment, retail, and other community services Schwanke et al (2003) emphasize that neighborhoods foster social and economic interactions, while the Congress for the New Urbanism (2001) advocates for compact, pedestrian-friendly designs as fundamental components of transit corridors and mixed-use developments According to Farr (2012), building on Perry's (1929) original research, essential neighborhood functions should be accessible within a five-minute walk, approximately 400 meters, covering an area of 50.6 to 64.8 hectares.
The term mix in common points for a unified that consists of diversity and many different elements combined Song & Knaap (2003, 2004) and Koster & Rouwendal
In 2012, researchers defined the concept of land use mix in urban areas, categorizing it into sectors such as government and public institutions, entertainment, commerce, industry, and residential areas The interplay and arrangement of these diverse facilities within a region shape the overall character of the land use mix, particularly when residential areas are integrated with retail and public spaces.
The mixed-use neighborhood studied offers a well-rounded environment that fulfills the diverse daily needs of its residents, blending single-family homes with commercial, institutional, and recreational spaces This balance allows residents to easily access essential services and amenities, including restaurants, parks, libraries, and schools, promoting an active and engaged community.
Many researchers and authors have presented various definitions of home Allsopp
Construction of theoretical framework
This research aims to assess how sidewalk liveliness, an intangible characteristic, influences property values To achieve this, the author will conduct two interdisciplinary studies: one focusing on the creation of sidewalk liveliness and the other examining its effects on housing prices The first study will draw from extensive planning and urban design literature, particularly seminal works from the 1960s, including Barker's contributions from 1968.
The literature by Canter (1977) and Gibson (1979) explores the dynamics of public spaces, placemaking, and human behavior interactions This study is informed by hedonic pricing theory, which elucidates the factors influencing housing prices Homebuyers consider a range of amenities when making purchasing decisions, and these amenities significantly impact property value Consequently, the author introduces the two primary theories and the corresponding conceptual model in this section.
2.3.1 Theory of the place and human behavior
This section explores three key urban design and planning theories that serve as a foundation for the initial investigation These theories highlight human adaptability to environmental conditions, influencing how individuals engage in specific activities The theories examined include Barker's behavior settings (1968), Canter's theory of place (1977), and Gibson's environmental affordances (1979) Each theory shares overlapping concepts that help identify the factors affecting public behavior and activity choices on sidewalks.
In 1968, it was argued that the interaction between human behavior and physical environments is shaped by specific environmental layouts, consistent activities, and harmonious relationships between these elements Additionally, the physical environment significantly influences human behavior, while human actions also have the power to modify and transform their surroundings.
Canter (1977) and Gibson (1979) independently developed the behavior setting theory, which forms the foundation of ecological psychology, exploring human behaviors across various environments Canter emphasizes that a location is understood through its physical attributes, the activities it hosts, and the meanings ascribed by individuals He notes that our perception of a setting is influenced by our actions and emotional responses to it Meanwhile, Gibson highlights that the physical characteristics of environments serve as platforms for activities, incorporating both functional and aesthetic dimensions He argues that altering a setting can transform its usability and appeal.
Theories on human behavior highlight the significance of public spaces, such as sidewalks, especially within the Vietnamese context This article explores the potential relationship between sidewalk characteristics in mixed-use neighborhoods of Ho Chi Minh City and the behaviors and activities of individuals engaging in sidewalk life.
This section explores the economic theory of the pricing mechanism, highlighting how both tangible and intangible features of sidewalks can impact property values Rosen (1974) provides a theoretical foundation for applying the hedonic pricing model to property appraisal, illustrating the implicit market dynamics for differentiated goods Drawing on insights from Houthakker (1952), Becker (1965), Muth (1966), and Lancaster (1966), Rosen demonstrates the equilibrium of the hedonic price function through the analysis of demand and supply, focusing on consumer utility maximization and manufacturer profit maximization The diverse attributes of goods in the market are treated as differentiated commodities, with distinct market vectors representing each commodity The study relies on derived prices and various attributes to estimate implicit prices effectively.
Rosen’s theoretical foundation leads to a two-step approach: (1) estimating a hedonic equation by regressing the price of a commodity or good on its attributes,
In the analysis of implicit pricing for characteristics, the inverse demand curve or marginal willingness to pay function is derived from the partial derivatives of each property within the hedonic function The next step involves applying the estimated marginal hedonic price as an endogenous variable in the marginal bid and offer functions, while utilizing individual seller attributes as instrumental variables However, establishing this inverse demand function presents challenges, as it relies on assumptions regarding the supply side of the implicit market for these characteristics Notably, if the supply curve is entirely elastic or fixed, the marginal price of the characteristics is treated as exogenous in the estimation of the inverse demand function.
Overview of sidewalk in HCMC
2.4.1 The history of sidewalk development in HCMC
The sidewalks of Ho Chi Minh City (HCMC) have a rich history that dates back 300 years, reflecting the city's evolution through various political and economic regimes, including colonial, postcolonial nationalist, socialist, and market transition phases Historically, the area is characterized by the distinction between French colonial Saigon in the East and Chinese Cholon in the West, a division that was reinforced by urban design and planning that defined their respective roles and restricted development in the five-kilometer zone between them Officially merged in 1931, Saigon became the administrative capital while Cholon was designated as the industrial and commercial hub (Wright, 1991).
Before the merge, their functions were distinct By the late 19th century, Saigon showcased the French colonizers' ambitions through its impressive Haussmann-inspired urban planning, highlighting the power of their empire.
Saigon, characterized by its grid layout, roundabouts, and grand boulevards, became the French colonial administrative center in 1931 The city's Haussmann-style boulevards and the narrow sidewalks of Cholon are alive with a dynamic sidewalk culture that has flourished despite various regime changes This history illustrates how sidewalk practices have developed independently, often diverging from official city plans and regulations.
For much of its history, HCMC ’s place as a trading center made it a site for migrants and refugees.
Before 1975, Saigon experienced rapid urbanization that led to significant socio-economic challenges, including a surge in immigration, resulting in poor living conditions for many residents in cramped apartments with inadequate infrastructure Sidewalks were largely neglected, becoming vital sources of income for low-income workers through informal economic activities Post-1975, the city's colonial-era sidewalk planning proved insufficient for its growing population and increased vehicle usage, prompting more flexible use of these spaces This evolution transformed sidewalks into vibrant areas that foster commerce and cultural interactions, attracting pedestrians and facilitating various activities, thus creating a lively yet chaotic urban atmosphere.
Sidewalks in Ho Chi Minh City (HCMC) are frequently encroached upon for various purposes, jeopardizing pedestrian safety as they are forced to walk alongside motor vehicles, contributing to traffic congestion Additionally, littering by citizens exacerbates environmental sanitation issues along these roads, further degrading the urban landscape Despite over 30 years of legal regulations aimed at managing sidewalk usage, disorder remains prevalent throughout HCMC.
Sidewalks serve as vital public spaces in many countries, reflecting the social and economic challenges of the city Historically, activities on sidewalks have played a significant role in urban life, making it essential to consider the intertwined nature of economic and social issues associated with these areas.
The sidewalk of HCMC has many different functions, which creates a lively sidewalk of the city Specifical fuctions include the following:
• Function of ensuring pedestrian safety.
• Layout space for green trees and urban technical infrastructure.
In urban design and planning, a lively sidewalk encompasses various functions beyond just a pathway for pedestrians and technical infrastructure Neglecting or excluding these additional roles can lead to conflicts, as the overlooked functions continue to exist within the sidewalk space.
2.4.3 The characteristics impacts on using sidewalk in HCMC
Some characteristics affecting sidewalk use could include natural, historical, cultural- social, economic, transport characteristics, and urban management and policies problem (Nguyen et al., 2017).
Natural characteristics that have a major impact on the use of sidewalks by people, especially the temperature factor affect the comfort of users them (Hui & Jiang,
2014) In addition, wind and rain are also one of the natural factors affecting the comfort of people when moving in urban transition spaces, including sidewalks (Kray et al., 2013).
In 1976, Saigon merged with Gia Dinh Province and was officially renamed Ho Chi Minh City (HCMC) In the 19th century, the construction of major boulevards like Dong Khoi and Le Loi transformed Saigon into a bustling commercial hub, where French, Chinese, Indian, and Vietnamese merchants thrived (Nguyen, 2018) These vibrant streets became popular gathering spots for both Europeans and affluent Vietnamese, who frequented the lively pubs and food shops along Cartina Street (Dong Khoi) The French community, in particular, embraced the streets as an extension of their homes, engaging in daily activities from morning until midnight (Nam, 2018) In contrast, the Chinese population in Cholon prioritized business, often living in cramped conditions where their homes also served as workplaces These cultural dynamics continue to shape the identity of HCMC today.
Ho Chi Minh City's informal economy has deep historical roots dating back to feudal times, yet there is no official definition of informality in Vietnamese regulations, nor are there specific policies addressing the informal sector (Razafindrakoto & Roubaud, 2010) Informal activities on the city's sidewalks primarily include vending and household operations Kim (2012) highlights the fascinating array of life that thrives in these public spaces, where low-income individuals and immigrants conduct business Vending aligns with consumer habits, affordability, and utility for many residents, serving as a crucial livelihood for numerous impoverished households However, some vendors believe that sidewalks are owned by the landlords of adjacent properties, leading them to pay monthly rent for their space.
Sidewalks play a crucial role in fostering economic activities in urban areas, particularly in Ho Chi Minh City (HCMC), where over 3,800 sidewalk activities have been identified across six wards Research conducted by Kim (2014) highlights the presence of more than 150 sidewalk activities in the city center, particularly in Districts 1 and 5, based on interviews with 250 street vendors The sidewalk economy not only provides approximately 20 jobs but also enhances social security and contributes to the city's cultural identity This vibrant economic sector significantly impacts tourism, as visitors, especially international tourists, seek to experience the unique cultural aspects of the cities they explore Consequently, the sidewalk economy, through its diverse services and culinary offerings, plays a vital role in attracting tourists and enriching the local economy.
Vietnam, particularly Ho Chi Minh City, is characterized by a high prevalence of personal motorcycles Urban residents frequently stop, park, or even navigate sidewalks, taking advantage of the services offered by the sidewalk economy Moreover, in HCMC, sidewalks are commonly utilized for motorcycle parking, providing convenient access for customers visiting local shophouses.
2.4.4 The current situation of using sidewalk in HCMC
Ho Chi Minh City (HCMC) has a total of 4,869 roads that are 5.0 meters wide or more, spanning 4,044 kilometers, as managed by the Department of Transport and local People's Committees Out of these, 2,598 roads, accounting for 51.3%, lack sidewalks, totaling 2,074.64 kilometers Conversely, 2,271 roads have sidewalks, covering 1,969.36 kilometers, which is 48.7% of the total Among the routes with sidewalks, 772 roads feature sidewalks of 3 meters or more, totaling 451.04 kilometers (27.47%), while 1,499 roads have sidewalks smaller than 3 meters, covering 1,428.32 kilometers (72.53%) Consequently, the prevalence of roads without sidewalks contributes to parking congestion on these thoroughfares.
Population and road density in the city vary significantly across districts Districts 3, 4, 8, 10, 11, Phu Nhuan, Binh Thanh, and Go Vap exhibit high population density but low road density, leading to increased sidewalk complexity, which is believed to correlate with population density and inversely with road density Conversely, districts like District 1 and District 5, which attract many visitors, also experience heightened complexity In contrast, District 2 and five suburban towns display high road density but low population density, resulting in lower overall sidewalk complexity, often limited to specific areas.
A study by Nguyen et al (2017) reveals that in Ho Chi Minh City, 90-94 percent of personal motorbikes occupy sidewalks, with shophouses frequently using these areas to park motorcycles for customers Additionally, approximately 21-26 percent of shops utilize sidewalks for displaying goods, with around 63 percent of shophouses taking up one meter of sidewalk width.
1.5 meter width of sidewalk accounts for 24 percent The number of restaurants change during the day, and increase in the evenings On average, the 28 percent of restaurants use cooking stoves on sidewalks The highest rate in the evening.
The housing market in HCMC
2.5.1 The characteristics of housing market in HCMC
Understanding the key characteristics of the residential market in Ho Chi Minh City (HCMC) is essential for effective regression analysis The city is currently experiencing significant foreign investment in real estate, leading to a market predominantly influenced by a few major developers and speculators The commercial banking system, alongside government housing finance initiatives, plays a crucial role in addressing the housing needs of the population Culturally, there is a strong inclination among individuals to invest in home ownership, as houses are viewed as valuable assets, particularly individual homes.
Ho Chi Minh City (HCMC) has experienced an annual population growth of over 300,000, driven by immigration for education, employment, and business investments This influx has significantly heightened the demand for housing, necessitating the construction of at least 80,000 to 100,000 new homes each year Consequently, land prices continue to rise, making homeownership unattainable for low-income individuals and those with genuine housing needs The controlled supply of housing further exacerbates the situation, leading to a strong absorption of available properties in central areas.
Residential Market CBD area is restricted to develop new residential projects until
In 2020, a recent masterplan amendment for the city indicated that new residential projects in the CBD fringe would be selectively approved, contingent upon enhancements to the infrastructure system This approach has led to a positive absorption rate in the Central Residential Market As of the first quarter of 2019, the inventory of luxury and high-end properties in the CBD stood at approximately 1,300 units, while the inventory of high-end and mid-range apartments in the surrounding 11 districts totaled around 5,900 units (Vietvalues, 2019).
In Vietnam, the government retains ownership of all land, granting citizens only the right to use it, which essentially makes land transactions equivalent to leases In Ho Chi Minh City, single-family homes dominate real estate transactions, both in volume and market price The rising demand for luxury properties has contributed to escalating housing prices in recent years, adversely affecting the medium market by inflating overall prices and creating an oversupply Consequently, the government is expected to implement regulations to make housing more affordable Additionally, commercial banks and financial companies serve as the primary lenders in the residential real estate financing market.
The Department of Natural Resources and Environment in Ho Chi Minh City (HCMC) issues Certificates of land use rights and ownership for individual houses, granting permanent land use rights for residential properties Transactions involving land and housing in HCMC adhere to the Land Law of 2013, with a typical house transaction taking approximately three weeks The process is straightforward, encompassing the establishment of a purchase contract, fulfillment of tax obligations, and the transfer of land use rights to the new owner.
2.5.2 The house price in HCMC
There are several ways to determine the house price as below:
The Ho Chi Minh City People’s Committee publishes land price lists every five years, with the latest covering the period from 2020 to 2024, as outlined in Decision No 02/2020/QD-UBND dated January 16, 2020 This list details unit prices in million dong per square meter, organized by district and street To calculate a property's value, one multiplies the land area by the designated unit price for the corresponding location However, due to the lengthy five-year issuance period, these prices often do not accurately reflect current market values Consequently, the land price list serves primarily for calculating land use taxes that buyers must pay during transactions.
The house price in transaction contract
When engaging in a real estate transaction, it is essential to create a transaction contract, which serves as a binding agreement between the buyer and seller, typically facilitated by a notary office The government uses the recorded transaction price to determine the land use tax for both parties However, there are currently no regulations dictating an appropriate price to be recorded, leading buyers and sellers to often agree on a figure that is lower than the actual transaction price Observations indicate that the recorded price tends to be the minimum acceptable amount, as stipulated by the People's Committee, resulting in buyers and sellers paying less tax than they should Consequently, this recorded price fails to accurately reflect the true transaction value.
The transaction price of a property is determined by the agreed value between the buyer and seller, reflecting current market conditions Despite numerous housing transactions in recent years, there is a lack of centralized data collection on these prices This absence makes it challenging to gauge real estate market fluctuations accurately To gather transaction price data, sources such as buyers, sellers, brokers, and notary offices are essential However, this process is time-consuming, requires extensive networking with relevant departments, and incurs significant data collection costs.
In this study, the author utilizes transaction prices due to their high accuracy, which accurately reflects the real estate market conditions at the time of the survey Consequently, the research findings hold substantial significance.
Data samples and data collections
The study focuses on Ho Chi Minh City (HCMC), the economic, cultural, and technological hub of Vietnam, formerly known as Saigon In 2018, HCMC's GDP grew by 8.3% from the previous year, reaching 57 billion USD and contributing over 23% to the national economy Its strategic location has established HCMC as a key transportation hub in Vietnam and Southeast Asia, with extensive road, railway, waterway, and airway networks Covering an area of 2,056 km², HCMC had a population of nearly 8.7 million during the study period, highlighting its rapid growth and significance.
2019) The urban area is 140 km2 including 19 districts and the rural area is 1,916 km2 accounts for more than three quarters, including 5 districts and 98 communes.
Ho Chi Minh City (HCMC) is structured into a central urban area comprising thirteen key districts, including Districts 1, 3, 4, 5, 6, 8, 10, 11, Phu Nhuan, Binh Thanh, Go Vap, Tan Binh, and Tan Phu Surrounding this central hub are four satellite urban areas: the Northern area includes Hoc Mon, District 12, and Cu Chi; the Southern area consists of District 7, Nha Be, and Can Gio; the Western area features Binh Chanh and Binh Tan; and the Eastern area includes Districts 2, 9, and Thu Duc Data for this study was gathered from the thirteen central districts, along with two additional districts from the Eastern and Western urban areas.
The research focuses on specific survey areas in Ho Chi Minh City (HCMC), chosen for their historical significance related to socio-cultural and commercial activities on the streets and sidewalks Data was gathered from historical reports, newspaper archives, and photographs of the sidewalks in these areas The study categorizes the locations into four groups: (1) the Saigon area, which includes District 1, District 3, and District 10; and (2) the Cholon area, encompassing District 5, District 6, and District 11.
(3) The North and West urban areas: Binh Thanh, Tan Binh, Tan Phu, Go Vap, PhuNhuan district; (4) suburban districts: Binh Tan district, district 9.
Figure 2.2 Study area and data used.
HCMC currently has a total of 4,869 streets have a width of 5.0 meter or more, with a total length of 4,044 kilometer administered by the Department of Transport and
In 2017, the Department of Transport reported that there are 2,598 streets spanning 2,074 kilometers without sidewalks, while 2,271 streets do have sidewalks; however, only 772 of these streets are equipped with adequate pedestrian pathways.
With a length of 451 kilometers and sections measuring over 3 meters, more than half of the street lacks sidewalks This absence leads to road parking, traffic congestion, and safety concerns for pedestrians, negatively impacting walkability and local business conditions Additionally, during rush hour, motorcyclists frequently ride on sidewalks, resulting in significant damage to the pavement.
Traffic safety, along with noise and air pollution, poses significant challenges for urban residents in Ho Chi Minh City (HCMC), where motorbikes are the primary mode of transportation To enhance traffic safety and alleviate congestion during peak hours, 700 surveillance cameras have been installed across the city However, with a ratio of 6,843 meters of road per camera and 1,400 intersections, this number remains inadequate Additionally, noise and air pollution are prevalent issues in mixed-use neighborhoods near major roads, particularly in commercial areas that host retail and wholesale businesses along HCMC's main thoroughfares.
This study emphasizes residential properties due to the accessibility of relevant data, although such transactional information is often sensitive and not publicly available Acquiring comprehensive transactional data from local government sources proved challenging during the research fieldwork Consequently, the author relied on data provided by local real estate brokers, companies, and real estate transaction magazines As a result, selling prices of single-family homes located along sidewalks in mixed-use neighborhoods were gathered for analysis.
Data was gathered from thirteen districts in Ho Chi Minh City using non-probability sampling methods, specifically convenience sampling This approach involves selecting sample units from a specific location at a designated time, facilitating the assembly of the survey sample The data collection process in the study area is outlined as follows:
Step 1 Collectting information about the transaction prices of houses in the 2018-
2019 survey period The houses with sidewalks in front of houses, or houses in alleys larger than 3 meters or distance to the sidewalk less than 300 meters are prefered.
Step 2 Collectting detailed the structure characteristics of the house based on information provided by the landlord, broker, or the notary office.
Step 3 Using GIS to navigate location of the house, and measure distances to CBD, and other amenities such as markets, hospitals, schools, supermarkets, train tracks, bus stations, airports , train station, ect.
Step 4 Field surveying and collectting of information regarding the sidewalk and physical characteristics of the house by participant observations method, visual method as the following:
Physical characteristics of sidewalks: sidewalk width, sidewalk quality, sidewalk furniture, street width, one-way street or two-way street.
Observe the activities taking place on the sidewalk: walking, standing, sitting, talking, playing.
Observe the characteristics of the participants on that sidewalk: age, gender
Survey conditions use of house and neighborhood: rental property, mixed-use property, spillover.
Methodology
The first essay employed the mixed-method research design which is the combination of qualitative and quantitative approach to collect and analyze data(Tashakkori
In recent years, the integration of qualitative and quantitative methods in research has become increasingly common, as it allows for a more detailed and comprehensive understanding of research objectives (Creswell, 2007; Bryman, 2006) This mixed-method design enables researchers to address questions that cannot be fully answered by either qualitative or quantitative methods alone This essay employs an exploratory model, which begins with qualitative data collection followed by quantitative analysis, to determine if the quantitative findings can generalize the qualitative insights By utilizing this approach, the study aims to enhance the clarity of qualitative data and leverage quantitative data for a more robust analysis.
Figure 2.3 The exploratory research design.
This essay explores the influence of sidewalks as public spaces on property values in mixed-use neighborhoods in Ho Chi Minh City (HCMC) through the application of the hedonic pricing model The term "hedonic" refers to the unique characteristics of differentiated goods, with utility defined by the benefits these attributes provide to buyers The hedonic price function can be expressed as P = P(z), where P represents housing prices and z denotes the specific characteristics that affect these values.
Hedonic models of property valuation suggest that the value of a property is determined by the characteristics that potential buyers are willing to pay for According to Freeman (1979), these characteristics include structural elements like land area, building size, age, and the number of bedrooms and living rooms Additionally, neighborhood factors such as population density, living standards, employment opportunities, and crime rates play a crucial role Location characteristics encompass various land uses and nearby amenities, including parks, schools, hospitals, public transport, and markets.
Conceptual framework
This section organizes the theoretical literature and empirical findings, along with the author’s research hypotheses, into a coherent conceptual framework The framework is divided into two branches that align with the research objectives For the first objective, the author develops a sidewalk liveliness index and examines how various sidewalk characteristics influence it, as illustrated in Figure 2.4.
Figure 2.4 Conceptual framework (Source: Author’s figure)
The quality of sidewalks significantly influences the behaviors of individuals engaged in sidewalk activities, thereby impacting the overall liveliness of these public spaces This liveliness, measured from a social perspective, is shaped by various sidewalk characteristics, including width, quality, material, furniture, and the presence of mixed-use neighborhoods These factors not only affect user behavior but also correlate with the types of activities taking place In mixed-use areas, sidewalk liveliness is characterized by the presence of commercial and social interactions, which can be quantified by the number of people and activities on each segment Additionally, the economic role of public spaces is highlighted through the liveliness index, aligning with the research objectives focused on sidewalk quality.
Commercial activities encompass the actions of individuals—standing, sitting, or moving—focused on the production, distribution, and consumption of goods and services within a designated 50-meter sidewalk segment over a span of 15 seconds These activities typically involve financial transactions or the exchange of goods and services Conversely, social activities refer to community engagement and domestic interactions where two or more individuals participate, either actively or passively.
This research explores the influence of sidewalks on property values in Ho Chi Minh City (HCMC) through a hedonic pricing model, focusing on homeowners' perspectives It examines the effects of structural characteristics of houses, such as lot size, floor area, number of rooms, and frontage width, as well as locational factors like proximity to the central business district, hospitals, schools, markets, and shopping centers Additionally, the study assesses the liveliness index and physical attributes of sidewalks, including width, distance from the sidewalk, surface quality, and furnishings Property use conditions, which reflect neighborhood characteristics, are also analyzed, considering various property types such as rental units, mixed-use properties, and shophouses that serve as both residences and small businesses.
Summary
In this chapter, the author outlines the key concepts and research design that will be utilized to interpret the findings presented in chapters 3 and 4 The analysis focuses on the HCMC sidewalk within the framework of a mixed-use neighborhood.
This chapter outlines the research data and methodology, detailing the research process, which comprises three key steps: literature review, data collection, and the presentation of main study results and implications Additionally, the conceptual framework delineates the specific research objectives addressed in Chapters 3 and 4.