After Phu Quoc, billions of US dollars flow to Cam Ranh
A report on the resort property market in the first half of 2016 by Savills Vietnam said that international brands continue to be interested in the coastal resort property market in Vietnam.
As noted by Savills Vietnam, it is expected that within a few years, many luxury resort projects will be launched, especially in Khanh Hoa and Phu Quoc Island.
In particular, Cam Ranh peninsula is a new destination, with huge potential for tourism.
By the end of 2015, over 30 projects were licensed in Cam Ranh, of which 13 projects are currently under construction and will be inaugurated in the next few years.
Cam Ranh has seen the emergence of many super projects, most of them located along Bai Dai (Long Beach).
Although this market developed later than Phu Quoc, it is expected to grow rapidly.
There are plenty of 5 star projects developed in the period of 2016-2017, including the Crowne Plaza Hotel, Novotel Resort, Sonasea Villas & Resort, and Sunset Sanato Premium Complex.
These projects are developed under standards of international hotel brands such as InterContinental, JW Marriott, Accor and Starwood.
At the same time, many resort projects have opened for sales luxury seaside villas, managed by international brands and accompanied with re-lease programs.
The rental profit committed by investors is 6-10%/year within 3-10 years.
The business situation of this type is quite positive as both domestic and foreign buyers are looking for a stable and potential investment channel.
The prices of seaside villas are from $400,000 to more than $5 million.
According to Savills Vietnam experts, Vietnam is one of the tourist destinations with the fastest growth rate in Southeast Asia, thanks to favorable factors, such as the increasing number of tourists, the new hotel brands joining the market, the policy to loosen visa and the development of infrastructure.
Vietnam is ranked by UNWTO in the top 5 Asean countries for the number of international tourists, with eight million visitors, and an average growth rate of 9% per year over the past five years.
With a tropical climate and long coastline, coastal areas are favorite destinations of international tourists in Vietnam. In the past decade, more than 70% of international tourists chose Vietnam seas for their vacation.
The majority of tourists come from temperate countries such as the US, Europe, Russia and China. Thus, the coastal cities in the southern and central region with a warm climate all year round are the favorite destinations.
From 2010 to 2015, international visitors to Da Nang, Khanh Hoa and Phu Quoc grew rapidly, approximately 23% per year, and accounted for 30% of the total number of tourists in the country.
The growth in the number of tourists from developed countries has increased demand for hotel rooms of international standards.
Investment in tourism construction boomed in recent years, especially in 2015 when the number of 5-star hotel rooms rocketed by 37%, reaching 24,000 rooms in total, with 30% of rooms in Da Nang, Khanh Hoa and Phu Quoc.
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80% of purchases on Phu Quoc by Hanoi buyers Buyers from Hanoi accounted for approximately 80 per cent of all purchases in Phu Quoc Island’s real estate market, according to the latest Savills report on the island’s market in the first quarter, released on May 23. Following buyers from Hanoi were those from Ho Chi Minh City, with 15 per cent. Most coastal landed properties have been purchased for long-term investment or vacations. As a newcomer in the coastal residential market, Phu Quoc Island has only recently been recognized as a prime destination, mostly as a result of infrastructure improvements. In the first quarter total supply was more than 1,700 dwellings/units from six villa projects and one apartment project. As at the end of the first quarter the villa and apartment segments had sold 65 per cent and 35 per cent, respectively. Good marketing strategies, solid developer reputations, sound construction status, and pristine beach frontage supported performance. All projects are a component of a resort and offer a full range of facilities and amenities. Due to growing tourism and support policies, Phu Quoc’s coastal residential market has appealed to both local and international developers. However, most future projects are still in the planning stages as a result of repeated regulatory changes and adjustments to the island’s master plan by the local government. Only three new projects and the next phases of three existing projects will launch from the second quarter onwards, providing more than 660 dwellings/units. With better infrastructure, favorable policies and spectacular beaches, Phu Quoc is an ideal tourism destination. Following the opening of the international airport in 2012 visitors numbers have increased strongly, by 55 per cent over the last three years. In the first four months of this year there were more than 523,000 international and domestic visitors, up 37 per cent year-on-year. A number of large-scale (200+ rooms) projects are expected to enter the market within the next two years, with international operators such as Starwood, IHG and Mövenpick already in place. |
