Vietnam sea resorts for high-income earners
Vietnam sea resorts, owning luxury villas or apartments at beach resorts is a fast-growing trend among high-income people in Vietnam. An increasing number of sea resorts are doing good business with secondary investors, who are buying their properties in droves.
In mid-2006, Ho Chi Minh City-based Suoi Nuoc Company sold off its Aquaba Resort apartments, penthouses, townhouses and sea-view villas, all of which are scheduled to open next year in Mui Ne (Ne Cape), Binh Thuan.
According to Suoi Nuoc, more than 60% of the units available have been snapped up, though the developer is looking to up the total number of apartments, houses and villas in the resort from 105 to more than 160. One development, comprising indoor furniture, is priced anywhere from US$120,000 to US$600,000.
An Vien Co., the developer of the 71-hectare Phu Quy residential and tourism complex in the beach city of Nha Trang, has announced that 90% of its 400 land plots have been ordered to construct new villas, ranging from 188 to 500 square meters per unit.
The 400 land plots in the central province of Khanh Hoa were put up for sale a year ago, with a selling price of VND10-16mil (US$625-1000) per square meter. An Vien also plans to sell 40 completed villas in the near future.
Over two years ago, Son Tra Resort & Spa began work on are sort of nearly 200 villas on Son Tra peninsula off Danang's coast, and sold part of the resort to secondary investors.
Vietnam sea resorts, not far from Son Tra Resort & Spa, Paradise Resort also put up for sale nearly 150 villas near Ngu Hanh Son Mountain.
Meanwhile, in early 2006, Hanoi-based Hung Vuong Construction Investment and International Cooperation Co. began selling 300 villas, each 300-1,000 square meters, inside Flamingo Dai Lai resort. The villas are located along the Dai Lai Lake in the northern province of Vinh Phuc.
Dang Hong Anh, general director of Sacomreal, the exclusive sales and marketing firm of the Sea Links golf resort project in Phan Thiet, says that after 14 months of construction, 157 villas have been sold, which accounts for 64% of the total number of units on the golf resort.
Each 400-square-meter villa is offered at US$250,000. SeaLinks' villas will be completed by the end of 2008.
Normally, secondary investors at these resorts spend three to four weeks per year at the resort, and pay a resort manager to lease their villas to visitors. Secondary investors' incomes are, put simply, the total leasing fees paid by guests minus the fees paid to the resort manager.
The business potential of a resort depends, broadly, on the development of Vietnam's tourism industry and, specifically, on the traffic at its particular location.
It remains difficult, however, for secondary investors to project the potential of a beach and the marketing capacity of resorts' developers.
The developer of Flamingo Dai Lai resort, which has an average room occupancy rate of 50%, has pledged to help their secondary investors recoup investment capital at an annual rate of 7-8%. Real estate experts said a double-digit rate is expected at resorts in attractive tourist destinations such as Nha Trang and Phan Thiet.
Survey analysis also demonstrates: Hue's Lang Co, Danang's Non Nuoc and Quang Nam's Cua Dai beaches have great development potential; Nghe An's Cua Lo, Binh Dinh's Quy Nhon and Quang Binh's Nhat Le beaches are host to sluggish markets; Haiphong's Do Son and Thanh Hoa's Sam Son beaches are, to their detriment, too far from big cities; and, Vung Tau's beaches are unclean.