Battlefield’s spoils of victory

May 09, 2011 | 09:00
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The battle in the second home market is hotting up with more provinces and cities vying for a share of the spoils.
VinaCapital has given Danang a big plus in second home development

And a recent CBRE report states that it is the provinces with good governance, and better infrastructure and investment links that will win out in fight for the second home segment.

“In order to be an ideal location for second home investment, developers and buyers as must pay close attention to both factors,” said CBRE director Richard Leech.

At the lower end of the attractiveness scale are Ba Ria-Vung Tau and Quang Nam provinces, the report revealed.

At the other end of the rankings, however, are established locations like Nha Trang, Phan Thiet and an emerging player Phu Quoc island.

The forerunner is Danang with that city having excellent infrastructure and the top ranking in the Provincial Competitive Index (PCI) for the last three years.

The city is already a popular destination for both domestic and international holidaymakers and there are plenty of organised activities on offer including golf, trips out to see natural wonders and water sports.

Danang is also supported strongly by the local government with excellent infrastructure including an international airport. And the presence of big developers like VinaCapital and Indochina Land is a big plus.

In addition, the second home market is diversified in Danang with everything from beach homes to townhouses on offer.

Danang’s second  home  villa market would see an  increase  in  re-launched  projects  this year, along with new villa launches including the Norman Estates, the fifth phase of Ocean Villas, Mercure Son Tra, InterContintential Bai Bac, and Montgomerie Links Villas. The overall sales rate for villas in Danang was 52.2 per cent in the first quarter this year. This represents a quarter-on-quarter increase of 9.5 per cent percentage points but a year-on-year decrease of 0.6 percent. Approximately 2,500 new condos will come to the market in all segments through 2014.

CBRE gave second billing in its survey to Nha Trang, saying the city is a family-friendly destination and ideal for short visits from Ho Chi Minh City. It also has improving infrastructure and an international airport.

However, this city is short on tourism activities.

Recent developers in Nha Trang are Havana, TD Corporation, Hoan Cau, VinaCapital and An Vien group. The city is now providing buyers with a limited choice of options including beach and city condos and land plots.

CBRE’s third position went to Phan Thiet city, another well-known vacation spot. But this city has no airport and tailbacks can build on its roads. Its main activities are water sports with few natural wonders close by. The city also offers a limited choice for buyers, with only seaside resort investments, land plots and condos up for grabs.

Meanwhile, Vung Tau city is ideal for inexpensive getaways from Ho Chi Minh City. At the same time, infrastructure improvement is underway but there is only limited choice for buyers.

The city has already attracted developers such as Lac Viet Corporation, DIC, Refico, Cotecland and PVC.

Last but not least, Phu Quoc island is emerging as a hotspot in the second home market with people from Ho Chi Minh City using it for family weekend gateways, water sports and eco-tourism.

However, it has limited infrastructure with the planned international airport. Buyers there also have to make do with seaside resort investments and land plots.

Some other places earmarked for future potential in the second home segment include Dalat, Con Dao island, Quy Nhon, Phan Rang and islands, according to CBRE.

By Ngoc Anh

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