Condotel - resort apartment accounts for 81% of the total supply of products in the real estate market, but many investors are still wondering about this type of product. So what are the points to consider when deciding to invest?
Condotel or hotel apartment is the most popular type of resort products in Vietnam today. By 2019, condotel will have accounted for 80% of the second home supply in coastal markets. Around the world, condotel is considered a "lifestyle" product - showing the owner's lifestyle and class. However, in Vietnam, the condotel is being recognized as an investment product.
According to the research of Savills or CBRE, although the demand for this type of product is not low, but the supply of condotel increased sharply (an average increase of 29%/year in the next 3 years by 2020) leading to the competition. The harshness has affected many investors' psychology. In fact, in order to have a right decision when considering the type of condotel, investors should pay attention to the following 4 points:
First - Location is an important factor that determines profitability
Position is considered a "golden" factor for successful real estate valuation and business. For the vacation segment, the position is more decisive. According to the survey, currently available areas have a reputation for attracting tourists such as Da Nang, Nha Trang, Phu Quoc... the projects here will be safe, but not sure to be profitable quickly in the areas that are being distributed. such as Mui Ne - Binh Thuan or Phan Rang - Ninh Thuan.
Second - The legal legality of the project
Legal is a risk factor in real estate business. This is reflected in the project investment certificate, which is a prerequisite for publicity for customers. In addition, the value of the project lies in the customers' ownership and peace of mind about their capital thanks to a transparent legal framework. Under the direction from the government, in the third quarter of this year, a legal framework for condotel will be issued - this is a good sign for investors.
Third - prestige of the operator
According to Mauro Gasparotti, director of Savills Hotels Asia - Pacific, the risk of condotel model is mainly at the operation stage. If the operator is not professional, then profitability will not be as committed. Conversely, if the operator is an international brand such as Wyndham or Best Western, it will certainly be a guarantee for investors' profit in the future.
Fourth - prestige and brand of general contractor
The progress and quality of construction works will confirm the commitment of the investor and the general contractor to do the real work. The number and quality of projects that have been successfully and effectively implemented also contribute to creating an important reputation and brand, for example, projects by Coteccons to be general contractors will surely gain trust. Absolute investor's quality of construction and time schedule.
According to Investment News