Vietnam in ‘golden period’ for housing and resorts
Many real estate developers in recent years have been running a race to provide products that serve tourism, an achievement that has helped attract 10 million foreign travelers to Vietnam.
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A recent report from Forbes showed that Vietnam is now in the golden period in the demand for houses and resorts, while HCMC has been recognized as the second-most attractive city in Asia Pacific that is worth investing in.
More than 71% of surveyed investors said they would buy apartments in Vietnam if they had opportunities.
Resort real estate is also believed to have great potential for development in the time to come, as Vietnam’s tourism is witnessing rapid growth.
Tourism makes up 13.9% of GDP in Vietnam, higher than 8.2% in the US. The industry is estimated to create 2.25 million jobs, or 4% of the labor force.
2016 was a bustling year for the resort real estate market (resorts and condotels). The reports by some market analysis firms showed that about 3,000 resort villas and 15,000 condotels of the projects located from Da Nang City in the central region to Phu Quoc Island in the south were launched into the market.
The sales of these products were relatively good, with 50% of resort villas and 70% of condotels sold.
The reports all said that foreign investors have high interest in the real estate projects in the areas with high potential for resort tourism. A lot of Japanese and Singaporean investors have been expanding their business scale in large cities.
The market is believed to see stiffer competition in 2017, which will force real estate developers to adjust the sale prices and offer more flexible policies to attract buyers.
In the immediate time, resort real estate will continue to develop in cities and provinces with great tourism potential such as Phu Quoc, Nha Trang, Vung Tau, Phan Thiet and Da Nang.
According to Pham Lam, CEO of DKRA, big supplies will be seen in Nha Trang and Phu Quoc. However, he thinks Phu Quoc is still not that attractive because of poor public and leisure facilities, though the natural landscapes are beautiful. Most of the real estate developers there are Vietnamese.
In Nha Trang City, the resort real estate sector witnessed good liquidity in 2016, especially condotels. However, Lam noted that most of the travelers to Nha Trang were from China.
Some people think that the hotel market in Phu Quoc, the beautiful island in the south of Vietnam, has become saturated with the appearance of a series of 5-star hotels in 2015. However, analysts say the hotel room supply will still increase sharply in 2017.
