Investment prospects of central coast in spotlight
Investors are seeking alternative opportunities in central coastal cities like Danang and Nha Trang, given the high property prices in Hanoi and Ho Chi Minh City. In anticipation of the trend, foreign developers with strong financial capacity have ramped up acquisitions or have been partnering with local developers to scale up projects there.
Nha Trang city (source: Vinpearl Land)
Central Vietnam features a coastline of scenic beaches which have attracted a growing number of domestic and international tourists in recent years. Consequently, the coastal cities of Danang, Nha Trang, and Hoi An have become popular second-home markets, with completed infrastructure as well as a plethora of living and entertainment services.
Many tourists, investors, as well as locals desire to own beachfront apartments or villas in the area to enjoy their weekend holidays. On top of this, coastal properties would make good potential investments in the future. In fact, many investors who invested in Danang’s land plots have made a fortune when land prices have risen by 300-400 per cent after 5-7 years of investment.
As market sentiment is improving, inpidual investors are cashing in on non-Central Business Districts (non-CBD), like the central province of Quang Nam near Danang or the suburban areas of Nha Trang.
In June, Dat Quang JSC and CEN Group unveiled Ngoc Duong Riverside–The Gardens in Quang Nam in the south of Danang. At the launch, hundreds of customers and investors made deposits to snap up land plots, half of whom came from Hanoi and Ho Chi Minh City.
According to Giap Van Kiem, director of STDA Real Estate Project Supermarket System in the central region (the sales agency of the project), a land plot at Ngoc Duong Riverside is priced at VND683 million ($30,052), which is a reasonable price for investors. In addition, improvements to infrastructure and the transport system make Quang Nam’s real estate market more appealing to investors.
“It is hard to find development sites in Danang’s CBD, while the neighbouring areas have large land reserves and reasonable prices for private investors. As a result, Ngoc Duong Riverside continues to receive solid interest from investors, prodding CEN Group to pay more attention to this project,” he added.
According to statistics by the Nha Trang-Khanh Hoa Real Estate Association, property giants have secured a firmer foothold in the central province of Khanh Hoa and Nha Trang City in particular during the past three years. Consequently, the real estate market there has been transformed, thanks to an impressive line-up of old and new projects.
Nguyen Xuan Thuy, chairman of the association, noted that, “By the end of 2016, around 39 resorts were being constructed across Khanh Hoa, with a combined investment capital amount of VND6 trillion ($264 million). Along with newcomers like Vingroup, other professional developers are also flocking to the market.”
The infrastructure improvements in Nguyen Tat Thanh Street, the main arterial road of the northern Cam Ranh Peninsula stretching along Bai Dai Beach, and the system of fish-bone roads leading to the sea were highlighted. A slew of projects developed by famous brands, like Movenpick Cam Ranh Resort, Fusion Resort Nha Trang, and The Anam Resort, are currently under construction.
According to Pham Thi Khanh Ngoc, sales manager of Nha Trang Real Trade and Investment Co., Ltd., the 30-kilometre road running along Bai Dai Beach connecting Cam Ranh International Airport with Nha Trang is packed with 37 resorts under construction. The resorts are set to open in the next few years, creating a new tourism complex along the road.
Coastal properties make for attractive second homes and investment (source: viettourist.com)
It is notable that the Vietnam Real Estate Association has organised an event for real estate brokers in Nha Trang, which highlights the attractiveness of the market. In fact, most brokers at the event highly appreciated the potential in the city’s real estate sector.
Similar to Nha Trang, Hoi An’s bustling real estate market has been underpinned by a growing tourism sector and billion-dollar investments on international-standard resorts.
Hoiana is the largest casino and resort complex in Central Vietnam, covering an area of 985ha. The $4-billion project held the groundbreaking ceremony in late April 2016. It includes resorts, luxury entertainment areas of five-star standard, cultural centres, commercial centres, shopping centres, villas, and marinas.
The project is invested by a joint venture between Vietnam-focused asset management company VinaCapital and foreign partners. In the future, Hoiana Integrated Casino Resort is expected to turn the economically disadvantaged area to a popular leisure, tourism, and entertainment destination in the region.
In the north of Hoi An, another billion-dollar project known as New Hoi An City is completing the final works to commence the first phase of operation. HB Group has injected $1.5 billion to develop premium coastal properties on an area of 400ha.
Vietnam’s leading property developer Vingroup also held the groundbreaking ceremony for Vinpearl Hoi An Resort & Villas, representing a total investment capital amount of VND5 trillion ($220 million). The 200-ha project features Vinpearl hotel and villas, Vinpearl Golf Club, Vinpearl Land entertainment area, and a hi-tech agricultural park combined with VinEco tourism.
Meanwhile, Dat Xanh Group will implement the Opal Ocean View Resort project on a 185-ha site near South Hoi An. With an investment capital sum of VND4.6 trillion ($202.4 million), the project includes villas, a beach resort, and a hotel, with synchronised technical infrastructure.
Many coastal property developments are underway in Hoi An, including Tam Ky-Nui Thanh coastal tourism complex (2,000ha), Tam Ky urban area (2,000ha), and Tam Hoa-Tam Anh urban area (2,240ha).