Investors keep pouring money into resort properties
The resort real estate market has heated up, with many projects up for sale and trillions of dong invested.
A series of resort projects along the coast have been put up for sale in the last four months.
FLC Group offered to sell 90 seafront villas and 323 apartments. Meanwhile, Tanzanite International from Singapore offered to sell The Hamptons Ho Tram in Vung Tau City, Sun Group launched Premier Condotel Phu Quoc, and Muong Thanh launched hotel apartments.
According to CBRE, a real estate service provider, resort real estate supply increased in the first quarter of the year compared to 2015.
In the sea city of Nha Trang, 1,357 products of this kind were sold in the first quarter, while only 481 products were sold in the entire year of 2015.
In Da Nang City, 1,335 products were sold, much higher than the amount of 180 products sold in 2015.
In early 2016, Eurowindow spent VND2 trillion to build two 5-star resorts covering an area of 35 hectares in Cam Ranh City in Khanh Hoa province.
Meanwhile, HB Group injected $1.5 billion into the project in Hoi An City of Quang Nam province. Vingroup, the largest real estate firm, and LDG Group, are developing the projects on Phu Quoc Island, Da Nang and Nha Trang.
Dang Hung Vo, the leading real estate expert in Vietnam, noted that more and more investors tend to invest in the resort real estate segment instead of high-end houses and apartments.
He said investors once hoped they would make big profits from leasing high-end houses to foreigners and pouring money into the market segment.
However, as they have realized that demand in the segment is relatively low, they have shifted to invest in resort real estate as a new way to make profit.
However, the expert pointed out that not all investors dare inject money into resort real estate.
“The pioneers in the field are all large corporations which have powerful financial capability,” Vo said.
He went on to say that Vietnam has favorable natural and cultural conditions to develop resort real estate.
Besides, as Vietnamese living standards have improved, demand for resort real estate has been increasing rapidly. Therefore, investors are confident that they would make profits if investing in the field.
Reports all show high number of transactions in the market segment.
Jones Lang LaSalle (JLL) said 70 percent of offered apartments and villas have been sold.
More people have shown their interest in resort real estate products also because of sales policies, which offer many preferences.