Vietnam's coastal real estate market woos investors
Vietnam's coastal real estate market woos investors
Vietnam has considerable potential in its coastal real estate market, experts assured at the Coastal Appeal seminar held by VIR in Ho Chi Minh City.
Vietnam's coastal property has natural resources such as blue sea, white sand, golden sunshine which are all year round, converging natural conditions to become top tourist destinations for tourists
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Mauro Gasparotti, director of Savills Hotels Asia-Pacific, said that Vietnam's condotel products concentrate on locations like Phu Quoc and Danang. Potentialwise, he likened Vietnam to Thailand.
However, Vietnam has bigger advantages than its neighbour due to its longer, breathtaking coastline, hospitable locals, and fine cuisine. Vietnam’s condotel market is also blooming after Thailand, giving it ample experience to build on.
Arnaud Ginolin, general director of Boston Consulting Group, noted that Vietnam’s market and infrastructure are going well. Despite the lasting effects of COVID-19, the development of coastal cities in the country is expected to pick up speed.
Also, Vietnam’s coastal property needs improvements in diversity and quality. It is important to focus on quality in terms of customer connections and more recreation options because these factors prompt customers to return several times.
Do Thien An Tuan, economist from Fullbright University Vietnam, pointed out that Vietnam’s rising second home market is partly driven by the country’s rising affluent class. Specifically, Vietnam ranked as the economy with the second fastest-growing number of ultra-high net worth individuals worldwide for the last decade.
He highlighted Vietnam's potentials that attract second home investors. The country ranked third globally in the growth of the number of upper-class citizens between 2012 and 2017.
The number of people travelling beyond their areas of residence increases on weekends, facilitated by a much-improved road system such as highways, which makes it easier and faster to reach farther destinations. Besides, a second home is also an effective channel for investors to use their idle money.
Another opportunity comes from the ageing population. Ageing population will boost demand for efficient social services for senior citizens, along with wellness and retirement tourism. Tourism products for elderly and retired people are also expected to grow.
For example, Phan Thiet-Binh Thuan located at a convenient distance from most of Vietnam's developed tourist spots such as Ho Chi Minh City, Da Lat, Nha Trang, and Vung Tau.
Moreover, natural endowments such as blue sea, white sand, and ample sunshine all year round make Vietnam's coastal destinations some of the top tourist destinations in the region and the world. Also, infrastructure systems such as highways and airports are the driving force for this area.
