Resort real estate in Hanoi suburbs: untapped gold mine
The resort market segment in Hanoi remains untapped and awaits strong investments.
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Da Nang, Nha Trang and Phu Quoc are considered investors’ paradise. However, it is Hanoi which attracts the highest number of tourists. In 2016, Hanoi received 21.8 million travelers, including 4.5 million foreign travelers.
The Hanoi Tourism Department estimates that the capital city would receive 23 million travelers this year and get turnover of VND66 trillion.
In the first quarter of 2017, it received 6.1 million travelers, an increase of 7% over the same period last year.
An analyst said that travelers to Hanoi either stay in the inner city or move to other destinations such as Sa Pa, Moc Chau and Ha Long Bay. The city suburbs still lack high-end accommodation and entertainment facilities.
The number of high-end resorts in the area is modest, while the room rate is high. Popular amusement areas such as Khoang Xanh, Ao Vua and Thien Son Suoi Nga are crowded with services at low quality.
Real estate experts said there are still attractive resort models in the peri-urban area. Many families in Hanoi seek the space for relaxing at weekend at villas in Luong Son area of Hoa Binh province, about 45 kilometers from Hanoi’s center.
According to Nguyen Thanh Trung from Zen Vietnam Investment JSC, the company is seeking the villa entrustment, including separate villas in the suburbs of Hanoi, to put into business. The number of clients is relatively high at weekend.
The appearance of well managed villas which are re-leased by entrusted companies has opened a new business model for the real estate market in the outskirts of Hanoi.
Many resort projects have reaped initial success with the model, including Flamingo Dai Lai, Sunset Villas and Lam Son Resort, which are to be put into operation soon.
Tran Ngoc Quang, secretary general of the Vietnam Real Estate Association, said the demand for entertainment services and tourism from Hanoians is high. Investors don’t need to worry about the clients, but the resort market will need large-scale projects and powerful investors to take off.
In related news, Vietnam’s real estate market attracted over US$600 million in foreign direct investment (FDI) in the first five months of this year, according to the General Statistics Office (GSO), a nearly two-fold increase against the compared to the same period of the last year.
