|Major developers are looking for new land like Binh Dinh and Quang Nam |
Quy Nhon the emerging market
A 2017 survey of the overall real estate market in the central region shows that there are no strong fluctuations in Quang Tri, Quang Binh, and Phu Yen. In particular, the market in Quang Tri and Quang Binh has not seen any major projects apart from land transactions between individuals. The only highlight of Phu Yen is a shophouse project by Vingroup, but land plot projects’ liquidity remains at a low level, similar to the northern residential area in South Tuy Hoa Urban Area.
The Thua Thien-Hue real estate market has experienced more robust performance. According to Nguyen Van Tu, director of the Thua Thien- Hue Land Development Centre, there is a dramatic shift in the land plot segment. The market is quiet in the north and northwest but is bustling in the south and southeast. The strong growth of the land plot segment in the areas has given a boost to neighbouring towns and communes like Phu Vang and Huong Thuy, forming a chain of new property products.
Quy Nhon is deemed as an emerging place that has more advantages than Nha Trang and Danang in terms of infrastructure system, with roads connecting to the rest of Vietnam. Quy Nhon also serves as a gateway to the Central Highlands, southern Lao localities, and northeastern Cambodian provinces. Vietnam Airlines has opened routes linking Quy Nhon with Hanoi and Ho Chi Minh City with steady flights at Phu Cat Airport, which contributed to attracting an increasing number of tourist arrivals to Binh Dinh.
“As Binh Dinh unlocks its tourism potential, investors have ramped up investment in the province,” said Huynh Cao Nhat, deputy director of the Binh Dinh Tourism Department.
On the same note, Nguyen Thuc Dinh, director of the Binh Dinh Department of Planning and Investment, said that as a wave of investment arrived to the tourism and services sector, several real estate projects have contributed to improving infrastructure and local tourism. Some notable developments include FLC Sea Tower Quy Nhon, the Kim Cuc hotel and tourism complex, the BMC Quy Nhon complex, TMS Luxury Hotel and Residences Quy Nhon, and the Hoa Sen Tower luxury complex with hotels, apartments, and shopping malls.
According to Nguyen Thi Kim Cuc, chairwoman of Kim Cuc Investment and Construction Co., Ltd., Quy Nhon is an emerging market where infrastructure and tourism have yet to be fully developed. Quy Nhon seems to attract mainly local tourists in the coming years, but hotel rooms and accommodations fail to keep up with the rising demand.
She added that the province has offered more favourable incentives to lure in investors. Many luxury resorts and five-star hotels are underway in Quy Nhon’s downtown and Phuong Mai Peninsula.
Evaluating Binh Dinh’s tourism growth and its tourism development strategy until 2020, Dr. Tran Du Lich, head of the consultancy group for Central Coastal Region Development and Co-operation, said that Binh Dinh is on the right track to develop tourism to become the province’s key economic sector.
Quang Nam the hot spot
Bordering Danang, Quang Nam is a bustling gateway with almost complete infrastructure. The year 2017 was marked by a strong momentum in the northern Quang Nam real estate market covering the ancient town of Hoi An and Dien Nam-Dien Ngoc New Urban Area.
According to the Quang Nam Department of Construction, roughly 80 investors have injected capital into high- and mid-end projects in the land plot, townhouse, and villa segments in the province. However, the total stock is inadequate to meet the demand, while the projects are quickly snapped up after launch.
New Hoi An City and Hoi An Royal Residence in suburban Hoi An have made a splash with their villa and condotel models. Meanwhile, several land plot and townhouse projects like Sun River City by Bright Land JSC, My Gia 1 and 2 by Phu Gia Thinh Corporation, and GAIA by Gaia Group are warming up the market. These projects are located in the route linking Danang with Hoi An through Dien Nam-Dien Ngoc New Urban Area, which borders the Co Co River on one side and the sea on the other.
According to the Quang Nam Department of Construction, the northern Quang Nam real estate market has become more bustling due to the successful urban development planning in recent years. Dien Ban has reached the standard of urban type IV, while some communes in the eastern region have been upgraded to wards. However, the main reason for strong economic growth and urban development is its proximity to Danang.
Meanwhile, the southern Quang Nam real estate market along the coastal road from Cua Dai Bridge to Tam Ky City has undergone a dramatic transformation in the liquidity of the landed property segment, especially in the coastal Tam Thanh area.
After the Tam Ky-Tam Thanh route was expanded and upgraded, Tam Thanh has developed new tourist attractions like Vietnam’s first mural village as well as Tam Thanh beach square for big events. The growth of the tourism and services sectors in the commune resulted in a property price hike. A 300-square metre land plot next to the beach square in the main route to Sheraton Hotel fetches VND2.5 billion ($110,000). Meanwhile, a 100sq.m land plot near the beach square goes for a minimum VND1.55 billion ($68,200).
“In the southern Tam Thanh residential project, the cost of land use rights increased by 20-30 per cent compared to the floor price in 2017. Land prices also rose by 50 per cent compared to the two previous years,” said Nguyen Quang Tuan, director of the Management Board of Tam Ky Investment and Construction Projects.
According to the Quang Nam Department of Construction, Quang Nam’s coastal area is bustling with large investment projects. Some real estate brokers noted that the attractiveness of the Quang Nam real estate market is unlocked by newly developed urban areas with new and unique designs meeting the standards of modern urban development and a full suite of social utilities. The department added that that the provincial real estate market has increased by 10-20 per cent on average in 2017, as the market is in the beginning of a boom cycle and has yet to reach a peak.
Opportunities are ample for investors in 2018, especially when infrastructure is fully developed and connected with other cities and provinces in the central region and nationwide.