Developers eager to build large-scale coastal urban areas to meet surging demand
Developers eager to build large-scale coastal urban areas to meet surging demand
Seizing on the growing demand for second home ownership, more developers have been making large investment in large-scale coastal urban areas.
Vietnam remains a magnet to second home developers. Photo: Le Toan
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This was stressed at the Coastal Appeal seminar held by VIR this morning in Ho Chi Minh City. The event saw the participation of regulators, experts, and businesses looking for new opportunities in the coastal real estate market.
Pham Lan, general director of DKRA Vietnam said that diverse new coastal real estate products have appeared in the market, in addition to villas and resort condotels. In particular, there are more coastal urban projects with larger scale, ranging from hundreds to thousands of hectares. As one of the key orientations of Vietnam’s maritime economic development, Vietnam's second home market has made great strides over the past 10 years.
After a recession in 2010-2014, the second home market has rebounded in 2014. Typical products at the time were mainly villas in resorts. A few condotel projects began to develop in the period.
Between 2015 and 2020, big investors have jumped on the wagon to develop large coastal urban projects. Coastal real estate expected fast-paced development in the given period, especially in tourism localities like Quang Nam, Danang, Khanh Hoa (Nha Trang, Cam Ranh), Binh Thuan, Ba Ria-Vung Tau, and Kien Giang (Phu Quoc).
In 2018-2020, coastal real estate become more popular in emerging markets like Binh Dinh, Phu Yen, and Ninh Thuan. However, there are only a few projects with small scale developed by small investors.
“In the past two years, developers have rolled out new and versatile properties into the market, which reflect the progress of the market and businesses. However, local investors have been active in this market such as Vingroup, Sun Group, CEO Group, BIM Group, Novaland, and FLC. The market have witnessed a boom in supply, especially condotels,” Pham Lan said.
Between 2016 and September 2020, around 41,000 condotels and 7,847 beach villas have been introduced to the market. The projects have been growing in scale, with some projects spanning across 100-1,000 hectares under the integrated resort model.
