Tourism boom fuels property market in central region
Real estate in coastal central localities has proved its attractiveness to both investors and buyers thanks to the booming tourism industry.
For the past years, Vietnam has recorded a continuous increase in the number of tourists.
Data of the General Statistics Office show that in 2018, the country welcomed 15.6 million foreign arrivals and 80 million domestic travellers, up 2.7 million and 6.8 million respectively from the previous year. The number of foreign visitors continued to grow well in the first seven months of this year, 7.9 percent year on year, to almost 9.8 million.
Vietnam hopes to attract about 18 million foreign holidaymakers and serve 85 million domestic tourists this year.
The central region, home to many renowned destinations, is increasingly attractive to property investors as the local tourism sector is now in need of better infrastructure.
Many insiders said while prices of land along coastal roads in tourist destinations like Nha Trang, Da Nang and Quy Nhon were relatively low 10 years ago, they are soaring at present, even up by 10 times for real estate at prime locations.
For example, when the Golden Bay residential area in Cam Ranh Peninsula, Khanh Hoa province, was unveiled a few years ago, it was priced at 3.6 million VND (155 USD) per sq.m. on average. Now, prices range from 18 million VND to 25 million VND per sq.m or even 40 million VND.
Besides, the expanding urban middle class is easily attracted to condotels that can both satisfy their recreation demand and generate income while having lower prices than those in Hanoi or Ho Chi Minh City, the country’s two biggest cities.
Incentives that central localities give to coastal real estate investments have also added another encouragement to developers’ intention.
According to Savills Vietnam, coastal property is drawing investors and buyers’ attention.
The Novaworld Phan Thiet project, recently unveiled in Phan Thiet city of Binh Thuan province by NovaLand, has had more than 2,000 street houses and coastal villas purchased in only three weeks.
Meanwhile, over 1,300 coastal land lots of the Nhon Hoi New City resident area in Quy Nhon city of Binh Dinh province have also been sold like hot cakes, its developer Danh Khoi Real Estate JSC said.
Since the beginning of 2019, an array of large projects have made debut in coastal provinces like Binh Thuan, Ba Ria-Vung Tau, Binh Dinh and Quang Ngai. Savills Vietnam said this signals a vibrant period of the central region’s property market.
The consultancy noted the local market is expanding with a wider range of resort property products targeting more buyers. It is driven by tourism development, which is followed by the growing accommodation demand of middle-class tourists.-VNA