According to DKRV, 2019 witnessed the wave of the riches rushing to develop an unprecedented large-scale project on Vietnam's coastal province.

A survey of Danh Khoi Viet Company (DKRV) said that 2019 marked a major turning point of resort real estate when it was the time when occurring many coastal "super projects" and the strongest wave of investment towarding sea over the past decade. 

This unit said that many businesses are ready for package of resort real estate in many provinces of Phu Quoc, Ba Ria - Vung Tau, Khanh Hoa, Ninh Thuan, Quang Nam, Danang, Phu Yen .. to expand to new coastal market in 2019. Among them are many projects with capital scale up to billions of USDs.

Statistics show that, along with the strongest wave of sea real estate investment in 10 years, prices have also fluctuated in a very large amplitude over the past 3 years. The price of coastal land in Ninh Thuan, Phu Yen and Binh Dinh markets, which are not tourism capital has also increased by more than 50%.

Hot markets like Nha Trang increased by 150%, Danang was the first sea market to increase sharply in the first two quarters of 2019, increasing about 60%. Ba Ria - Vung Tau bordering Ho Chi Minh City in the past two quarters has attracted investors to this area, especially the Ho Tram area. Many large-scale projects were launched, pushing prices up by more than 60%. Particularly, Phu Quoc market did not have many changes.

Perspective of a shophouse complex project combining large-scale resort tourism in Tuy Hoa - Phu Yen

As analyzed by General Director of Danh Khoi Viet Company (DKRV) Tran Le Thanh Hien, there are three main reasons leading to the strongest boom of the coastal real estate investment wave in Vietnam over a decade.

The first is the infrastructure to support the development of Vietnam's resort real estate, which is in a brilliant development stage with appearance of many highway and airport projects. The total length of national highways is still being extended over the next few decades. This is a favorable condition to promote tourism in destinations that take a few hours traveling by car.

On the other hand, owning a car today is quite easy for Vietnamese people, helping change their travel habits and access to vacations more quickly and easily. These are positive support for the booming wave of investment in the resort real estate market in Vietnam.

Secondly, the resort market is benefiting from the strong growth in the number of domestic and foreign tourists, as well as the growth in the number of international direct flights. The trend of tourism and resort real estate investment of the middle class and the rich in Vietnam also has positive changes. In particular, more and more brands and investors in the global hotel segment are flocking to Vietnam market as a future hot spot in the region.

Finally, the legal corridor promises to be gradually improved over time. In the coming time, the legal corridor of combined resort real estate products (condotels, coastal villas, coastal townhouses ...) will gradually be adjusted, supplemented, towards completion. In terms of long-term potential, the resort real estate market in Vietnam promises to meet the diverse needs of investors: used to relax, exploit for rent and accumulate assets.

However, according to Mr. Hien, the wave of investment in sea real estate is too strong and the large cale of sea projects brings two things to note. The first is the ability to finish of the projects. If the project is proved to have a good finish, it will create a great attraction, creating a push for the sustainable development of the market. If these super projects are in trouble, they can create obstacles and inertia for the market.

Another note is that the decade-long commitments of huge profits are very common. There is currently no basis to guarantee these commitments. Legal issue and limited ownership term is also risky. However, in the coming time, if the legal corridor is completed, this investment channel will go one step further, towards comprehensive development, which is also an optimistic signal for the future of this market.

Source: Vu Le - VnExpress.net