More than 45,000 hotel rooms are about to land, Vietnam "surpasses" Thailand on resort real estate supply

Vietnam has 45,650 rooms about to enter the market in 2019-2022, surpassing Indonesia, Thailand, Malaysia, the Philippines and South Korea.


Savills has just announced the potential and prospect of the resort real estate market and said Vietnam is leading the supply of resort products in the period of 2019-2020. Accordingly, Vietnam's resort real estate basket outperforms those of Indonesia, Thailand, Malaysia, the Philippines and South Korea. Specifically, Vietnam has about 45,650 rooms about to enter the market in the period of 2019-2022, an average of 11,400 rooms are put into operation each year, accounting for 69% of the total current supply. Specifically, Quy Nhon has 2,250 rooms, Da Nang has 12,600 rooms, Nha Trang and Cam Ranh has 17,800 rooms with the rate of hotel apartments (condotel) reaching 58-77-82% respectively for these three destinations.


Surfing around the "hot spots" of the resort real estate market can see a series of condotel apartment projects beginning to enter the handover stage. In Da Nang, we can mention a series of completed projects such as Four Points by Sheraton Da Nang, Vinpearl Condotel Da Nang... In Nha Trang, projects Ariyana Smart Condotel, The Costa Nha Trang, Panorama Nha Trang... just put into use. It is expected that from now until the end of the year, dozens of other resort real estate projects will continue to land.


Currently, projects already in operation have a strong competition on policies for owners. Many projects are committed to sharing profits and revenue. For example, in the project Ariyana Smart Condotel, investors commit to share revenue 10%/year in the first 4 years. Since the fifth year, whether the building business is profitable or loss, condotel owners still enjoy 30% of revenue and are able to pay back the investment after only 9.5 years. In addition, the owner is also allowed to share the 15-day holiday exchange in the year, the mandate period is up to 20 years.


In addition to the form of profit commitment in some projects, investors also commit to buy apartments after putting them into use. Particularly, recently the market has appeared more waves of Condotel apartments not committed to profits and confirmed to sell at lower prices. These include the Nha Trang Bay Construction and Investment Joint Stock Company - the investor of The Arena Cam Ranh project in Khanh Hoa or the Hometel Dragon Fairy project at 89 Tran Phu, Nha Trang, owned by 89 Building Company Limited. investment... or recently, Goldsand Hill Villa Phan Thiet project.


According to another report on the development of the resort real estate market announced by DKRA Vietnam in the first quarter of 2019, the condotel market in Vietnam showed signs of increasing both supply and demand. Report on the development of the resort real estate market announced by DKRA Vietnam, in the first quarter of 2019, there were about 2 new condotel projects opened for sale in the first 3 months. This basket provided the market with about 1,751 condotels, up sharply from the previous quarter.


This unit assessed that Vietnam's resort real estate market in condotel segment has signs of increasing both supply and demand. Primary condotel supply is concentrated mainly in Khanh Hoa and Da Nang but it is likely to continue to explode in many marine tourism capitals across the country in the remaining quarters of the year.


It can be seen that the boom of the resort real estate market clearly reflects the development trend of the tourism industry in Vietnam. With the advantage of a coastline stretching over 3000km from the North to the South, many beautiful and unspoiled beaches along with investment capital are poured into projects, the marine tourism real estate market is one of the markets attract many investors.


According to forecasts, by 2020 Vietnam will welcome about 21 million international tourists and 80 million domestic tourists. With such a number of visitors will need about 300,000 rooms of 3 to 5 stars. However, at present, the number of standard accommodation rooms across the country has not met the demand, leading to scarcity of rooms, especially in tourist cities in the peak season. This promises a prospect that the marine tourism real estate market will continue to be active in the future.


In the face of the extremely potential development of the resort real estate market, experts also said that the market had many potential risks for customers if the condotel apartment market was not managed and regulated in a way effective, in the context of the legal framework for condotel and the marine tourism real estate market had not been completed synchronously.


According to Lan Nhi - Tri Thuc Tre