Huge demand for resort property
According to the statistics of Vietnam’s tourism sector, the country welcomed 12.9 million foreign arrivals and served more than 73 million domestic visitors last year.
The number of international and local visitors is forecast to reach 100 million by 2020, with a subsequent increase in demand for resort property.
Professor Dang Hung Vo says there is huge potential for resort developments in Vietnam as the tourism industry is growing rapidly at a rate of 30-40 % and will continue growth pattern in the future. As one of the nations with high tourism growth in the world, the country’s resort property development can be considered a right track.
According to a CBRE report, Vietnam will require another 300,000 rooms of 3-star hotel standard and above by 2020. At present, there are a total of 102,758 rooms of this type in the cities of Da Nang, Nha Trang, Ha Long, Phu Quoc, and Da Lat. Major cities need to add 78,000 hotel rooms in the future, which promises to be rather lucrative for property developers.
Hotel occupancy rates in Hanoi, HCM City, and resorts have risen remarkably at more than 90%while hotel bookings during holidays can be hard to come by. There is a huge demand for rooms near tourism sites and the volume of trade is expected to attract investors in this segment.
Luxury resort villas and condotels, two new types of real estate, have emerged in Vietnam over recent years. The arrival of condotels and resort villas has created a new trend in real estate investment. In 2017, the resort property market in central and south-central parts such as Da Nang, Khanh Hoa, Phu Quoc, Binh Thuan, and Quang Ninh saw positive signs with more than 22,800 apartments on the market, including more than 12,500 reporting successful transactions.
In addition, there are many large-scale tourism investment projects in Phu Quoc, Nha Trang, and Da Nang. Three special administrative and economic zones will take shape in these cities in the future, opening up a slew of bright prospects for the tourism development towards turning tourism into a spearhead sector for national economy.
Complete legal framework
Many resort property development-related laws and regulations have yet to be adjusted to their presence thus presenting difficulties to state management which affect the legitimate rights of residents and businesses.
Especially, the granting of land ownership certificates for condotel and officetel accommodation is also a troublesome problem. Legal regulations on new real estate segments are currently being under consideration for adjustment amendment by the Ministry of Construction and the Ministry of Natural Resource and Environment.
Regarding problems arising from resort property disputes, Professor Dang Hung Vo proposed that existing laws be applied in a flexible manner without having to wait for law-regulated documents in this regard. The law enforcement must be implemented and instructed at all levels. Currently, each locality is resolving problems related to condotel projects in their own particular ways, causing confusion and disorder.
Professor Vo has emphasized the need for State management agencies to set out clear instructions for the consistent application of laws regarding resort property.