Which resort property will become a "hot spot"?

According to experts, resort real estate has many development potentials. In the coming time, investors will head to Quy Nhon, Tuy Hoa, Phu Yen or Phan Rang, Phan Thiet... familiar markets such as Da Nang and Nha Trang will be saturated.


The potential for real estate development is still great


Information at the seminar "New trends and opportunities for real estate investment in the second half of 2019", said Nguyen Manh Khoi - Deputy Director of the Department of Housing and Real Estate Market Management (Ministry of Construction), said the property is on holiday. Condotel and resorts are two investment trends in recent years, receiving the attention of many domestic and foreign investors.


According to experts, the potential for tourism property development in the remaining months of 2019 is still very large...


According to Mr Khoi, incomplete statistics show that in 2018 more than 8,000 condotel were opened for sale in about 12 localities, mainly localities with many tourist investment opportunities such as Da Nang, Khanh Hoa, Ba Ria - Vung Tau, Kien Giang, Phan Thiet, Quang Ninh, especially Quang Ninh account for 19%, Da Nang 14%, Khanh Hoa more than 26%.


More than 7,800 apartments were traded in 2018, the absorption rate was more than 92%, which proves that in 2018 the real estate sector has received a lot of attention. Only in the first quarter of 2019, the number of open condotels sold in the southern markets was higher than in the north, the southern provinces, especially from Da Nang, with more transactions.


Given that the potential of tourism property development in the remaining months of 2019 is still very large, Mr. Khoi pointed out a series of advantages in tourism property development of the remaining months in 2019 for a number of reasons such as: demand for vacation tourism is increasing; Secondly, Vietnam is starting some new types of tourism such as sightseeing tours, medical tourism, spiritual tourism, shopping tourism...; Thirdly, the legal basis of tourism real estate types is clearer than before, only the problem of condotel regulations is not complete and not clear. Mr. Khoi stated that condotel is a tourist apartment, not a house. Fourth, now many localities are calling for investment, organizing invitations to invest in tourism real estate very much.


Along with that, the government's policy of considering tourism development is a spearhead industry - one of the policies that has always been paid special attention by the Government with the goal of not only improving the quantity and quality but also being raised.


Although there are many potentials, but according to Mr. Khoi, the current market is also facing many difficulties, which are a number of legal grounds that the Prime Minister deals with such as the Land Law, including the certification. Currently, the new units are studying to amend the Land Law, it must be completed in 2020; limited investment capital, credit... 


However, Mr. Tran Dinh Thien - Member of the Economic Advisory Group of the Prime Minister predicts that this year tourism will continue to grow well, this will have a positive impact on the tourism property market. "Vietnam real estate market in big cities and resort markets will become a place to receive much attention. In particular, recently when Japanese investors are moving strongly from industry to tourism. Therefore, the potential of Vietnam in the coming time still receives the attention of international investors. We have a basis for optimism but need to be cautious" Mr. Thien noted.


According to experts, any "hot" resort property depends on what article in the law we amend.


Which area will become the "hot spot" of resort real estate?


From the perspective of management, Deputy Director of the Housing and Real Estate Market Management Department said, Vietnam has 4 types of sea tourism - river - mountain - field, each type has a unique advantage but generally 4 types are development if infrastructure develops.


"However, in the short term, marine real estate is still a remarkable point, the new provinces have many potentials, especially from Da Nang. These provinces have land fund and are calling for investment, such as Binh Dinh, Phu Yen... all have airports,  said Mr. Khoi.


Prof. Dang Hung Vo, former Deputy Minister of the Ministry of Natural Resources and Environment, said that any area that becomes a hot spot depends on what article in the law we amend. "If the Land Law fixes this type of business for only 50 years, the market will stop immediately. Regarding the region, we are familiar with the "hot" points of the market such as Da Nang and Nha Trang, but these markets will be saturated. In the coming time, the market will move to Quy Nhon, Tuy Hoa, Phu Yen... which are faster growth areas. Besides, I see some potential points will have faster development speed like Phan Rang and Phan Thiet” Mr. Vo said.


According to Mr. Duong Duc Hien, Director of Housing Business Division of Savills in the North and Central, Vietnam has too many segments that we have not fully exploited, such as golf tourism. Real estate not only developed exclusively for tourism, but also many other types.


According to Minh Thu