Along with many large-scale sea resorts of Vingroup, Sungroup... existed before, the Empire Group's Cocobay with tens of thousands of legal completed products or Novaworld Phan Thiet over 1,000 hectares of Novaland... are truly opening a new game with the true marine cities, after completion will create a new story of the resort real estate segment in Vietnam.
The new resort cities
Talking to a reporter of the Real Estate Investment Newspaper over the weekend, Mr. Nguyen Duc Thanh, Chairman of the Empire Group, proudly affirmed that, when completing the entire project, Cocobay will be the largest seaport in Vietnam with about 10,000 real estate products in many segments such as apartments, villas, shophouse, condotel...
“A marine urban project is very large, so the implementation process also faces many challenges, in which the legal bottleneck for condotel products was the biggest problem for Cocobay Da Nang in the previous period. Up to now, I can confirm that all legal issues have been resolved and at Cocobay Da Nang currently welcomes about 3,000 visitors every day to stay and experience”, said the owner of the flower contest. After Vietnam has just said, at the same time, it is expected that the legal improvement, adjustment of science planning and greener, especially when the majority of real estate products at Cocobay Da Nang have been approved to issue land use right certificate for a long time, will turn this place into a model sea city of Vietnam in the near future.
Cocobay Danang is the most enthusiastic project of the Empire Group boss
It can be said that the sea urban is an expensive, risky game, but it is also very attractive to real estate giants. Not only need great resources to go long distances, the owners also need a deep understanding and a wide enough vision of the sea real estate business, have diverse relationships at home and abroad to complete the massive legal profile as well as ensure that the metropolis can attract large enough tourists to maintain operations.
If it can be proved that it is easy to attract a large number of secondary investors to real estate products invested in marine cities.
Real estate giants understand that and this is the reason why a large flow of capital from abroad as well as inland is hunting for land to develop coastal real estate projects. In addition to the Northern business faces, there are many coastal projects that have been known for a long time such as Vingroup, Sun Group, Empire Group, BIM Group, FLC Group, etc. in the South recently witnessed the first-name enterprises. sectors like Novaland, Hung Thinh Group, Danh Khoi Group... are also stepping up their participation in the coastal real estate market.
And as Mr. Duong Minh Tien, General Director of Asia New Time Company, the story of coastal real estate investment up to now seems to be not limited to the space, beyond the administrative boundary, by the region. What land has a beautiful beach and beach, that place will be like a million dollar gold mine.
Indeed, if before, referring to the resort real estate market, people only think of familiar lands such as Vung Tau, Mui Ne, Nha Trang, Da Nang or beyond are Phu Quoc, Ha Long ... , recently, many land areas attached to the sea have been hunted by reputable and professional investors, promising to create an explosion of the coastal real estate market. Specifically, mentioning the southern coastal markets, over the past time, many super real estate projects appeared along the coast such as the Novaworld Phan Thiet project with a scale of up to 1,000 hectares invested by Novaland, or the project. Novaworld Ho Tram in Ba Ria - Vung Tau province with the scale of stages also up to thousands of hectares. These are really big cities if they are properly invested, after completion, they will create a new story of the resort real estate segment in Vietnam.
In the Central region, in addition to the long-known markets such as Nha Trang or Da Nang, Binh Dinh has recently caught the eye of investors. As noted, from the beginning of 2019, some areas such as Quy Nhon, Nhon Hoi, and Nhon Ly of Binh Dinh Province have been landed by many investors.
Beginning in 2016, the People's Committee of Binh Dinh Province has a policy to call for investors with real capacity to invest in the form of socialization of land development, technical infrastructure development, and housing development. in commerce, new urban areas. And so far, Quy Nhon has attracted many large enterprises such as FLC, Hung Thinh, Phat Dat, Danh Khoi Real Estate Company (DKR). In particular, the most noteworthy recently is the Nhon Hoi New City urban area project developed by Danh Khoi, creating a new wave for this market, when more than 1,300 coastal red soil products have just been announced by investors.
In order for "red carpet" to attract domestic and foreign investors and tourists, Binh Dinh province has stepped up its infrastructure development strategy in Quy Nhon with many road transport projects being implemented as extended routes Ngo May, national highway 1D, national highway 19B. In parallel, Phu Cat Airport is located away from the city center. Quy Nhon, about 35 km northwest, is being upgraded and expanded with a designed capacity of 1.5 million passengers/year, possibly expanding to increase its capacity to 2.4 million passengers/year. It is expected that the port will open the first international flight from Phu Cat airport in September...
According to experts' analysis, the real boom of the coastal real estate market in Nhon Hoi in particular and many other areas in general will be even stronger in the near future.
New "taste" of the real estate market
It can be said that the concept of "coastal real estate" has never been as meaningful to the market as it is now. According to experts, this is the most booming period of coastal real estate investment in the history of forming Vietnam's real estate market.
About 10 years ago, coastal resort real estate was known as a luxury property, because it was a game for the rich, the customer with the highest tip of the triangular tower. Therefore, there have been many projects, although beautiful and methodical, are quite difficult to sell. However, up to now, the real "taste" of the market has been changed, coastal real estate has not only become the demand of the majority of customers but also became a "game" full of Interesting investors.
According to the analysis of experts, the change of "taste" of Vietnam's real estate market is following the common rules of many countries in the world. Because coastal real estate in Vietnam is not only for the rich for the purpose of relaxation, but also a type of exploitation real estate worth millions of dollars.
Over the years, Vietnam has witnessed an increasing number of international tourists, in which lands with beautiful beaches and well-connected infrastructure are in the sights of tourists. According to the General Department of Tourism, in the first 7 months, visitors to Vietnam reached nearly 9.8 million, increasing 7.9% over the same period in 2018.
For domestic visitors, according to Nguyen Trong Thuc, Senior Manager of CBRE Vietnam Research and Development Consulting, rising income and the growth of the internet and social networks have helped stimulate demand of the Vietnamese. At the same time, there are significant improvements in infrastructure (highways, airports, number of flights ...) that increase connectivity between major cities and resort cities, as well like between resort cities and international markets.
The rapid growth of Vietnam's tourism industry has drawn the attraction of the demand for coastal real estate investment. From a market with a starting point is a lifestyle product for the super-rich - people are willing to go down if they like the location and design of the project, in which the megacities are full. Utilities and spacious space will have many advantages in attracting tourists and investors.
“A large sea city will form an attractive resort and experience ecosystem, as well as attractive trading and trading. Therefore, these will be the products leading the development trend of coastal real estate in the future”, said Nguyen Duc Thanh, Chairman of Empire Group.
Completing the legal process is one of the most important parts
Mr. Nguyen Duc Thanh, Chairman of Empire Group
Due to the huge scale as well as the complexity and diversity of products, the completion of legal documents for marine supermarkets in general and Cocobay Da Nang in particular requires a lot of effort and time. Meanwhile, this is the issue that customers are most interested in besides location, project design.
In order to do this, the understanding, transparency and demand of the investor are very important, along with the great support of the local government that locates the project and the relevant agencies in Center.
For Cocobay Da Nang, we have the advantage that most of the planned area is residential land. After the condotel product has been legally entangled, the investor has undergone a period of effort to complete the legal document including the following steps: Adjusting the plan from condotel to condominium and low-rise area, reducing the construction density and coefficient of land use, increasing the landscape and utilities to expand the urban space; receive land allocation decision; approve urban design including detailed perspectives to each unit.
The final step is until early August, we have received the decision to approve the sale. It is expected that after the Lunar month, Cocobay Da Nang will officially open the low-rise area, but so far, the number of customers has reached more than 100 villas and adjacent products.
Coastal real estate investment is becoming a wave
Mr. Hoang Kim Hoai, General Director of Phuc Dien Land Company
As the supply of urban projects in many big cities became scarce, real estate businesses had to fish offshore, leading to a new wave of investment in the coastal provinces and cities, especially are projects with marine elements.
With the strong investment in infrastructure, moving from the center to coastal provinces and cities is no longer as difficult and time-consuming as before, so owning sea properties is not far away in think of many people. Moreover, compared with big central real estate, marine real estate price is quite good, while immediate exploitation to bring cash flow for investors is very good.
Compared with other countries in the region, the cost of resort tourism as well as the price of marine real estate in Vietnam are still very low, so in addition to tourists visiting Vietnam, the work of foreign individuals and collectives property ownership in Vietnam is increasing. The standard of living of Vietnamese people has rapidly improved, the demand for relaxation has increased, and the second and third property ownership has become more and more familiar.
On the supply side, local real estate businesses have become more professional, know how to exploit the strengths of the project, diversify products as well as promote promotion. Moreover, the increase in the value of marine real estate products in recent years has always reached a high level compared to other regions, there are places with growth rates of 30-50%, there are projects that exceed 100% within 1-2 years.
To succeed, it takes not only the primary purchasing power but also the demand for tenants when the project operates
Mr. Nguyen Trong Thuc, Senior Manager, Research and Development Consultancy Department CBRE Vietnam
With the potential of the Vietnamese market, there is a large inflow of capital from abroad as well as the domestic market that is hunting for land for development of resort real estate projects, so the project trading market is expected to boil more in the future. In the North, with the opening of Bach Dang Bridge in September 2018 and the Ha Long - Van Don highway as well as the Van Don airport built, the Van Don resort real estate will attract more attention during the next time. In Khanh Hoa, in the next 3 years, Pham Van Dong and Bai Dai areas will be the project hot spots. In Phu Quoc, the next wave will take place in the North Island (where it is expected to have the first casino to allow Vietnamese to play), as well as the southern area of the airport. In Da Nang, the area of Son Tra district as well as the area along the road to Hoi An will be a hot spot in the future.
Increasing connectivity makes it more feasible to spread the project to newer localities such as Sapa, Van Don, Quang Binh and Quy Nhon. In addition, in the coming time, when the land fund for coastal resort projects is limited, real estate in mountainous areas may become hot spots. However, projects in mountainous areas need to be developed in accordance with natural conditions and cannot be forced to apply models such as high-rise condotels.
Successful developers are those who consider not only the demand for resort real estate products, but also the demand for rental rooms when the project comes into operation. In order to create accents and attract both of these demand sources, new projects may consider using non-existing management units in Vietnam, or more "boutique" names with new designs/concepts.
For individual investors: first, the buyer must really enjoy traveling at the project site, not so focused on the profit commitment numbers but need to understand the transparency of information. The project, as well as the ability to operate later (whether or not a professional management unit, if the investor is self-managed, do they have any experience or not, and there are sufficient facilities and amenities to attract tenants or not).
To meet the demand for tourism and convalescence becoming increasingly important to the majority of people
Mr. Duong Minh Tien, General Director of Asia New Time Real Estate Company
In fact, urban real estate or coastal real estate has its development rules, in which the common segment is that when demand is increasing, the value of use, exploitation is getting bigger. And when demand is greater than supply, rising prices become the rule of the market.
Coastal real estate in recent years has been a boom. This is easy to understand, because the tourism needs of international and domestic tourists are constantly increasing, in which the destinations chosen by most tourists are beautiful sea areas. As we have seen, nowadays on weekends, holidays, at airports often become overloaded with the number of passengers not only the rich but increasingly popular in many subjects. Saying this to show that the demand for tourism and relaxation has become essential for the majority of Vietnamese people.
Another fact, about 10 years ago, in coastal roads, specifically roads in the tourist cities of the Central region such as Nha Trang, Da Nang, Quy Nhon..., land prices are quite low as Vo Nguyen Giap street of Danang, or Xuan Dieu street of Quy Nhon, the land price is only around a few dozen million dong/m2, even lower. But these roads have become priceless now because no one seems to sell. And not only in the above areas, the survey shows that natural bays in Vietnam are increasingly scarce and become a multi-million dollar, even billion-dollar asset when discovered and embellished. and properly exploit...
Coastal real estate prices are still relatively soft
Mr. Ngo Duc Son, Deputy General Director of DRH Holding
For Vietnamese, the hobby of investing or accumulating assets with real estate has become a culture, especially in the context of the depreciation of the dong, which made many people go to real estate like finding a safe shelter of capital flows. And as analyzed, when the real estate investment opportunity in Ho Chi Minh City has lessened, the cash flow will surely turn to niche markets, in which investment in coastal real estate is becoming an option to be preferred.
On the other hand, comparing prices, real estate prices in big cities have increased sharply, leading to risky investments. Meanwhile, coastal real estate has had a strong growth in recent years, but it is still relatively "soft", the room for price increase is still large. Coastal real estate in the future will become increasingly scarce, as evidenced by many coastal lands up to the present time are being hunted by real estate developers. The price of coastal land in many areas has continuously increased over time, especially with high-value real estate properties, whose prices have increased by a dozen times compared to many years ago.
Besides, from another perspective, the demand for tourism and relaxation is increasing, in coastal real estate is the investment channel to meet this practical demand, so investment in coastal real estate becoming an inevitable trend.
According to Chau Ky