Summary:
"Foreign players have found great potential in segments of second-homes and resorts in coastal and mountainous areas in Vietnam. So far, they have got initial signals of sound turning point"
Vietnam, March 4, 2010-After a period of domestic office-building oversupply, Vietnamese developers are shifting their focus to hotel and retail segments, while foreign ones have found great potential in segments of second-homes and resorts in coastal and mountainous areas. So far, the foreign players have got initial signals of right turning point.
A series of second-home projects totaling billions of dollars are mushrooming up along Vietnamese coast showing that building coastal resorts is now investors‘ top priority. Most second- home projects for sale so far have been developed in the coastal areas of Danang, Hoi An, Phan Thiet and Vung Tau. A number of major second-home projects are being carried out in Vietnam‘s northern provinces including the Long Chau Villas and Residences on Tuan Chau Island, Quang Ninh province; the Song Gia Resort & Spa and the Cai Gia-Cat Ba urban area, Hai Phong city. With an investment capital of more than US$1 billion, the Cai Gia-Cat Ba urban area is considered the biggest ecological tourism project in the north with all 90 villas in the first phase of the project having already sold out. Meanwhile, the central and southern regions are well known for its Best Western Nha Trang Plaza in central coastal Nha Trang city, Ho Tram Sanctuary and Laguna Long Hai in Ba Ria-Vung Tau province, the Evason Hideaway on Con Dao Island and Long Thanh Golf Resort in Dong Nai province.
Despite the sky-high prices of above $180,000 per apartment and $1.3 million per two-storey beachfront villa, many potential customers felt regret for being slow to buy. These second home projects are attractive as they provide a relaxing atmosphere for families on weekends and vacations. Besides, they can be made available for lease when not being used by the family. In addition, many old people and retirees from developed countries move abroad for the lower cost of living, for tourism, and for escape from the city hustle. With the recent rapid economic growth and improved infrastructure, beautiful coastal areas like Ha Long, Cat Ba, Da Nang, Phan Thiet, Nha Trang, Khanh Hoa and Con Dao are becoming resort paradises.
CBRE Vietnam General Director Marc Townsend said that the series of coastal resorts and second home projects show positive signs for the future of the real estate market in particular and Vietnam‘s economy in general. In the reports of Vietnam real estate 2010 prospects from CBRE and Savills, second-home real estate is expected to have stable development in which sub-categories of ecological and coasting real estate are considered emerging and widespread trends.
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