Resort real estate attracts investors

09:08 | 23/07/2016 Economy

(VEN) - Domestic and foreign investors are increasingly allured by holiday resort real estate developments.

Resort real estate attracts investors

Increased numbers of tourists from developed countries to Vietnam have triggered the development of high-class resorts

Ample potential

The World Tourism Organization (UNWTO) rated Vietnam among top-five most visited ASEAN countries based on its annual growth rate of 9 percent over the past five year.

Vietnam has a tropical climate and long coastal lines which have attracted a lot of international tourists. Over the past decade, more than 70 percent of foreign tourists have chosen marine cities in Vietnam to spend their holidays.

During the 2010-2015 period, international tourists to Da Nang, Khanh Hoa and Phu Quoc increased by 23 percent on an average, accounting for 30 percent of the country’s total tourist number.

The visa exemption policy that took effect from July 2015 and applied to tourists from France, Germany, Italy, Spain and the UK has partly contributed to boost domestic tourism. Phu Quoc pioneered the policy on foreign tourists for up to a 30-day stay length.

Available resort real estate

Increased numbers of tourists from developed countries to Vietnam have triggered the development of resorts, especially for high-class places.

According to the Savills Vietnam Co., Ltd, tourist accommodation construction boomed over the past few years. For example, last year saw 24,000 new five-star hotel rooms, a 37 percent increase in over the previous year, with some 30 percent of which found in Da Nang, Khanh Hoa and Phu Quoc.

Da Nang was rated the most developed in terms of tourism, with a series of resort real estate projects have been on sale since 2015 including Aurora Da Nang City, Marina Complex, Fhome, Furama Ariyana and Cocobay.

Nha Trang City in Khanh Hoa Province boasts to have many coastal high-class hotels, with some 1,400 new five-star hotel rooms available for the year, a 68 percent increase over the previous year.

Phu Quoc is expected to gather momentum, with two five-star resorts entering operation in 2015. Currently it has 866 five-star hotel rooms, accounting for 20 percent compared to Da Nang and 30 percent compared to Nha Trang. However, several five-star resort and hotel projects will kick off during the 2016-2017 period including Crowne Plaza Hotel, Novotel Resort, Sonasea Villas & Resort and Sunset Sanato Premium Complex.

Khanh Hoa’s Cam Ranh peninsula is a new attractive destination, with more than 30 licensed investment projects. Some 13 of the licensed are under construction, mainly alongside the Long Beach (Bai Dai), and attract the participation of international partners including Accor, Carlson Residor and Movenpick.

Investors pledged a 6-10 percent annual profit from coastal resort real estate projects within the next three to 10 year, which really attracts domestic and foreign buyers.

International investors expect a boom in coastal resort real estate market in the coming years, especially in Khanh Hoa and Phu Quoc, said Savills Vietnam Deputy Managing Director Troy Griffiths.

 

Dinh Van & Chu An

Theo ven.vn