Tourism real estate returns to growth

21:37 | 18/07/2020
Tourism real estate is recovering from its hibernation as companies resume their project implementation plans.

Along Lac Long Quan Road in Phan Thiet city, a 1,000-hectare construction site is being deployed. This is the major project of NovaWorld Phan Thiet, an investment by Novaland Group.

Preparation for the more-than-90ha Thanh Long Bay Tourism, Entertainment, Resort and Sports Complex is also being accelerated by Nam Group. Besides, the group’s soon-to-be-launched shophouses are expected to command great frontage with high visibility.

In addition, Nam Group has already launched 36 finished villas at Wyndham Garden Phu Quoc. This immediately attracted the attention of many investors across the globe as Phu Quoc’ supply of resort villas is very limited.

tourism real estate returns to growth
Around 50 new resort projects are in the pipeline currently. Photo: Wyndham Garden Phu Quoc

In Van Don, CEO Group is also preparing for Sonasea Van Don Harbor City Resort and Tourism Complex, which will cover more than 300 hectares. This area is set for building luxurious accommodations, such as resort villas and international hotels under the "All in One" model.

Recently, Hung Thinh Group, spent thousands of billions of VND on the acquisition of a project of more than 1,000ha in Nhon Hoi, Quy Nhon city, Binh Dinh province.

Currently, the corporation is envisaged to build a complex of housing, villas, hotels, and resorts. The project will be officially introduced to the market later this year.

Besides coastal areas, many large enterprises are pouring capital into mountainous regions. For example, Him Lam Land plans to construct a tourist town named Macadamia in southern Bao Loc, a city in Lam Dong province.

Another investor, Ecopark Group, is also showing keen interest in the market. Accordingly, Ecopark aims to invest in two resort projects, which are the Sapung service complex, golf course and cable car as well as Lake Nam Phuong 2’s urban area, entertainment and accommodation services.

A good time to invest

According to Savills Vietnam, there are currently 49 real estate projects under construction in the luxury resort segment. These will come into operation in 2020, adding 16,900 rooms to the whole market.

The survey showed that 26 of these projects are rushing to be able to welcome guests within this year. The remaining 23 will be completed by 2021, 60 per cent of which are slated to open in the first and second quarters.

Pham Lam, general director of DKRA Vietnam noted that although tourism real estate is expected to encounter choppy waters in the coming time, it will recover when international tourists return to Vietnam.

Tourism real estate still has immense potential for growth, not only in traditional markets but also emerging ones.

“While the liquidity of this segment is decreasing, tourism real estate will eventually return to growth. Our tourism strategy remains the same and our goal is to welcome 20 million international visitors by 2025. Thus, this is prime time to browse for the best investment, choosing the right products before the market fully recovers and prices rise,” Lam said.

Duong Thuy Dung, senior director of CBRE Vietnam emphasised that as soon as the pandemic ends, there will be a wave of overseas funds flowing into resort real estate in Vietnam.

“Given the buoyant market in Vietnam, tourism real estate is appealing for domestic and foreign investors alike,” Dung said.

Nguyen Van Dinh, general secretary of the Vietnam Real Estate Brokers Association believed that deep-pocketed investors would grab these golden opportunities to purchase tourism real estate, in consideration of the abundant supply and attractive pricing at the moment.

By Nguyen Tran

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