Sai Gon real estate giants headed towards the sea

Sai Gon real estate giants headed towards the sea

Strongly developed tourism is pushing the real estate giants to move to provinces with tourism potentials, especially coastal cities to hunt land for project development. Market observers forecast this wave will increase strongly in the near future

New expeditions

The location that these investors target is not only Binh Thuan, Ba Ria - Vung Tau, Phu Quoc but beyond the Central provinces.

Although there have been dozens of housing projects in Ho Chi Minh City, since the end of 2018, Novaland has launched a strategy to invest in resort real estate. As planned, in 2019, this business will target two key areas: real estate and tourism services.

In particular, this group will strongly deploy NovaTourism tourism service with three main product brands: NovaHills Phan Thiet, Binh Thuan, NovaBeach in Cam Ranh, Khanh Hoa and NovaWorld in Ba Ria - Vung Tau, and at the same time gender. about 2,300 more real estate tourism resort products.

Another enterprise, Saigon Thuong Tin Real Estate Joint Stock Company (TTC Land), also voiced a reputation to join resort real estate. Right from the beginning of 2019, this enterprise has contributed capital to establish two subsidiaries in Phu Quoc and priced with a 100% owned rate.

Most likely, the establishment of these two subsidiaries is to implement the plan to expand the business to the field of resort tourism as planned in March 2018. According to the plan, this enterprise will launch Ocean Lotus project with scale of 245ha on pearl island of Phu Quoc.

Or as Phu Long Real Estate Joint Stock Company, investor of Dragon City urban area has an area of ​​65ha in Ho Chi Minh City, there are also new directions in 2019. That is "encroachment" to resort real estate. in Phu Quoc and Nha Trang, and will expand the land fund in Hanoi.

Strongly developed tourism is pushing Saigon real estate giants to travel to potential provinces to hunt for land fund to develop resorts. Photo: Thuan Nguyen

Experts said that the resort real estate market has developed again recently, mainly due to increased demand and the improvement of infrastructure.

Mr. Mauro Gasparotti, Director of Savills Hotels Asia Pacific, said that from an experienced destination with few options for accommodation and entertainment, the resort market in Vietnam is turning itself into a destination Resort with attractiveness and ability to attract tourists back.

According to data from the General Statistics Office, in 2018, international visitors to Vietnam reached a record 15.5 million people, an increase of nearly 20% compared to 2017. In the first two months of 2019, international visitors came Vietnam is estimated at about 3.1 million people, an increase of 8% over the same period last year.

“Vietnam has shown strong growth not only in the last two years but over the past decade with the recorded growth rate of international visitors three times higher than the global growth rate and twice the growth rate of the Asia Pacific region, ”Mauro said.

In addition, the improvement of infrastructure with new international routes, incentives from the government and the contribution of private investors have contributed to the development momentum for the resort market. Vietnam.

Also according to Mr. Stephen Wyatt, General Director of Jones Lang LaSalle Vietnam Company, the biggest problem of resort real estate in particular and tourism of the provinces in general is tourism infrastructure.

"In order to achieve this goal, investors must measure and balance to balance business exploitation, contribute to the economy and at the same time preserve the natural, cultural and identity of the localities. and environmental protection, ”Mr. Wyatt said.

According to him, to develop successful projects in the provinces, investors should invest in research to find new types of real estate suitable to the development characteristics of each locality, source trends. future supply and demand as well as competition provision from other investment channels. In addition, investors should focus on building projects with reasonable ecosystems to create a premise to exploit the project in the long term.

Potential investment channel

Assessing the liquidity of the type of condotel and sea villas, Mr. Wyatt said that within the past year, when the market has made new steps, developing in a more cautious trend, the number of buyers surfing also quickly reduced in demand structure.

“The liquidity of resort real estate is slowing down in the short term because the market is gradually stabilizing and investors are watching the next movements of projects that have been and will be handed over, put into activities to make my next decision ”, Mr. Wyatt said and forecasted in the long term, resort real estate will still be a potential investment channel thanks to the positive growth of Vietnam tourism also As the legal framework is gradually improving for this type of property.

However, the liquidity of resort real estate will be somewhat lower than other types of traditional real estate such as apartments, villas, land plots ... The buyers of this type of real estate are quite picky. Mostly, investors have been able to meet their essential housing needs and have free cash to invest in another type.

Mr. Wyatt also added that tourism cities such as Nha Trang, Da Nang and Phu Quoc, followed by new markets such as Ha Long, Phu Yen, Cat Ba and Ha Tien will continue to be the hot spots of the market. Vacation real estate school in 2019.

Thanh Thinh