According to DKRV, 2019 witnessed the wave of real estate giants rushing to develop an unprecedented large-scale project on Vietnam's coast.
The survey of Danh Khoi Viet Company (DKRV) said that 2019 marked a turning point of resort real estate when it was the time when many "super projects" along the coast and the wave of sea directions investment was simultaneously the strongest in a decade.
This unit said that many businesses are ready for resort real estate in many provinces: Phu Quoc, Ba Ria - Vung Tau, Khanh Hoa, Ninh Thuan, Quang Nam, Da Nang, Phu Yen... in order to expand into new coastal market in 2019. Among them are many projects with capital scale up to billions of USD.
Statistics showed that, along with the strongest wave of sea real estate investment in 10 years, prices had also fluctuated in a very large amplitude over the past 3 years. The price of coastal land in Ninh Thuan, Phu Yen and Binh Dinh markets that were not tourism capital had also increased by more than 50%.
Hot markets like Nha Trang increased by 150%, Da Nang was the first sea market to increase sharply in the first two quarters of 2019, an increase of about 60%. Ba Ria - Vung Tau borders Ho Chi Minh City in the past two quarters has attracted investors to flock to this area, especially the Ho Tram area. Many large scale projects were launched, pushing prices up by more than 60%. Particularly, Phu Quoc market did not have many changes so it moved sideways.
Perspective of a large-scale tourism and entertainment complex project in Phan Thiet.
General Director of Danh Khoi Viet Company (DKRV) Tran Le Thanh Hien analyzed, there were three main reasons leading to the wave of investment in coastal real estate in Vietnam the strongest boom in a decade.
The first was the infrastructure to support the development of Vietnam's resort real estate, which was in a brilliant development stage with many highway projects and airports showing off. The total length of national highways was still being extended and extended over the next few decades. This was a favorable condition to promote tourism in destinations that took a few hours traveling by car.
On the other hand, owning a car today was quite easy for Vietnamese people to change their travel habits and access to vacations more quickly and easily. These were positive support for the booming wave of investment in the resort real estate market in Vietnam.
Secondly, the resort market was benefiting from the strong growth in the number of domestic and foreign tourists, as well as the growth in the number of international direct flights. The trend of tourism and resort real estate investment of the middle class and the rich in Vietnam also had positive changes. In particular, more and more brands and investors in the global hotel segment were pouring into Vietnam market as a future hot spot in the region.
Finally, the legal corridor promised to be gradually improved over time. In the coming time, the legal corridor of hybrid resort real estate products (condotels, sea villas, townhouses...) would gradually be adjusted, supplemented, towards completion. In terms of long-term potential, the resort real estate market in Vietnam promised to meet the diverse needs of investors: used to relax, exploit, lease and accumulate assets.
However, according to Mr. Hien, the wave of marine real estate investment is too strong and the scale of huge sea projects brings two things to note. The first is the ability to finish projects. If the project is guaranteed to have a good destination, it will create a great attraction, creating a push for the market to develop sustainably. If these super projects are in trouble, they can create obstacles and inertia for the market.
Another note is that the decade-long pledges of huge profits are very common. There is currently no basis to guarantee these commitments. Legal and limited ownership period is also risky. However, in the coming time, if the legal corridor is completed, this investment channel will go one step further, towards comprehensive development, which is also an optimistic signal for the future of this market.
According to Vu Le