Resort villas sell like hot cakes

June 29, 2009

Sea Horse Resort in the central province of Binh Thuan.

VietNamNet Bridge – Buying apartments in high-end resorts and hotels has become big business in Viet Nam. Investments usually show quick profits for wealthy investors.

 

Nam Hai beach resort in central Quang Nam Province was one of the first resorts to develop the business. The resort is divided into a 60-room hotel and 40 villas. Thirty-six of the villas were sold to secondary investors. Prices have tripled in five years.

 

Indochina Capital’s soon-to-opened Hyatt Regency Resort&Spa in Non Nuoc beach, central Da Nang which includes a 200-room hotel, 174 apartments and 27 villas. The apartments and villas are being sold to investors for between $180,000 to $1.7 million.

 

Peter Ryder, general director of Indochina Capital, said his company has four projects under construction in Quang Nam and Da Nang – Nam Hai and Montgomerie Links Viet Nam, Riverside Tower and Hyatt Regency Da Nang Resort&Spa.

 

In the next three years, Indochina Capital will invest another $250 million in three more resorts in Quang Nam and Da Nang.

 

Selling apartments in resorts has quickly grown in other central region resorts, from Da Nang to Phu Yen Province. In Da Nang and Hoi An alone, villas in about 10 luxury resorts are up for sale.

 

Close to Hyatt Regency Resort&Spa is the Olalani Resort, which will contain three luxury villas, 88 high-end apartments and a 16-room hotel.

 

The Fusion Alya project has 19 pool-view villas, 11 sea-view villas and 57 apartments which are being sold from $95,000 to $280,000 per unit.

 

In southern Ba Ria-Vung Tau Province, many resort projects are under construction and many villas and apartments will be set aside for sale.

 

Business difficulties

 

Vegas Beach Club Resort, owned by the Magnum group, failed to sell villas to secondary investors at the asking price of $175,000 per unit. The resort was later sold to new investor Kingdom Hotel Investments.

 

Last year, Kingdom Hotel Investments also failed to attract buyers with prices ranging from $285,000 to $1 million per unit, but the market was depressed.

 

However, failure does not put off investors. They believe the rising economy will help generate a new middle class who will want to own high-end property.

 

The Sanctuary Resort in Ba Ria-Vung Tau Province wants to sell 90 per cent of its villas. David Clarkin, general director of Refico group, said the project continued to attract customers in HCM City.

 

According to Micheal Piro, marketing director of Indochina Land, those who buy villas at the Hyatt Regency Residences can use them for holidays for a few weeks a year then let them out using management companies.

 

Ho Quang Dung, deputy general director of Thien Thai Tourism and Hotels, said Furama pleged that it would rent villas back from those who bought in Ariyana projects.

 

According to research by CB Rechard Ellis, ideal locations for resorts include Nha Trang, Mui Ne, Da Nang, Hoi An and Lang Co.

 

However, Matthew Powell, Ha Noi-branch director of Savills, said the price of real estate in resorts in Da Nang was lower than other resorts in the southeast Asian region.

 

This was mostly due to a lack of comprehensive infrastructure.

 

VietNamNet/VNS

 

 

 

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