Resort market attracts domestic developers
Resort market attracts domestic developers
Investments in resort properties have shown signs of revival from the beginning of this year, after the market crash of 2008, and this led to much excitement among large developers.
However, the difference this time, from what was witnessed before the 2008 bust when such projects along the country's central coast were with foreign developers, is that many beachfront resort projects are now in the hands of domestic developers who are becoming more active in the real estate market.
In recent years, big names including the VinGroup, FLC, the BIM Group, and the CEO Group, in addition to the Sun Group, have spent a significant amount of funds in developing resorts in popular cities and provinces with rich tourism potentials, such as Nha Trang, Da Nang and Vung Tau.
Also, many new localities have emerged as magnets for resort property investments, including Phu Quoc, Quang Ninh, Hai Phong, Lao Cai and Thanh Hoa, which received large investments worth billion of dollars for the construction of high-profile resorts.
Keeping pace with the world economic recovery, beachfront resort villas and townhouses were becoming a source of investment opportunities for the rich.
Industry experts said the luxury resort property segment held great potential, given the new policy allowing foreigners to own houses beginning this month. The new policy was expected to trigger foreign capital inflows into the property market, especially in the high-end segment.
BIM Group, which invested US$2 billion in Halong Marina Urban Area in Quang Ninh Province, cited statistics from the Boston Consulting Group showing that some three million Vietnamese were now in the middle-class bracket, and they were financially capable of buying coastal property costing between US$250,000 and $2 million per unit. The number of middle-class Vietnamese was expected to rise to 33 million by 2020.
Le Minh Dung, executive director of BIM Group's property business, said buyers have shown interest in luxury property projects, adding that in the first six months of this year the BIM Group sold 368 units.
According to Nguyen Nam Son, CEO of Viet Nam Capital Partner, the demand to buy resort properties will intensify in the coming years as wealthy families are now eyeing such properties to be used to generate income through leasing, as well as for their personal use.
According to Vu Cuong Quyet, director of Green Land Company's branch in Ha Noi, the resort property market was considered to be a relatively attractive investment channel for investors due to promising profits from leasing out their properties.
