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s with many of the segments
that make up the real estate
market, the second home seg-
ment has been going through
some rather tough times. Many pro-
ject developers have had to restructure
their portfolios to sell units or change
the design to be more in keeping with
purchasers’ budgets and tastes. There
are some, though, who are still doing
nicely in the segment.
FACING FAILURE
There can be no doubt that the dif-
ficulties besetting the real estate market
have also discouraged the investment
wave in the second home segment.
At its peak, second home apart-
ments and villas in the tens of billions
of Vietnam dong were keenly sought by
any number of suitors. This, of course,
attracted a range of developers into
the market. Most if not all hoped there
would be no need to access loans to
fund their projects, because money
would quickly be coming in from sales
and their own capital would be suf-
ficient. Some believed that, with the
reputation of their brand name, success
would come easily.
But it simply hasn’t been the case,
and many people with money in their
pockets have moved away from the
idea of spending it on a second home.
Six Senses Saigon River was one
of many projects to initially fail after
jumping up into the second home mar-
ket. Confident with its first successful
endeavor, Six Senses Ninh Van Bay in
Khanh Hoa province, the Ninh Van Bay
Travel Real Estate Joint Stock Company
then decided to build another resort in
Dong Nai province’s Nhon Trach district,
called Six Senses Saigon River. This sec-
ond venture was designed in the South-
ern style, with leaf-roofed villas located
along the waterfront.
With proximity to Ho Chi Minh City
being in its favor, leaders at Ninh Van
Bay expected the wealthy to snap up
the villas for weekends away from the
chaos of the city.
In order to secure its capital flow
and turn a tidy profit, the developers
signed management and operations
contracts with Six Senses, a well-known
brand name operating one of the most
outstanding resorts in Vietnam: Six
Senses Ninh Van Bay in Nha Trang and
Six Senses Con Dao.
While many second home developers struggle amid difficult market condi-
tions there are others who for a variety of reasons have no trouble finding
purchasers.
Ngoc Anh
writes.
FEAST & FAMINE
LUXURY LIVING AND TRAVEL