High-end hotel boom in Nha Trang set to continue

A view of Vinpearl Resort in Nha Trang. Photo of vietnamonline.com

With the opening of two four-star and one five-star properties last year, there are over 4,000 rooms available now, a 24 per cent rise from 2013.

Since 2007 the number of international visitors to Khanh Hoa Province, whose capital is Nha Trang, has risen by 18 per cent annually. Last year there were more than 850,000 besides 2.8 million domestic visitors.

The hotel market's performance was weaker in 2014 than the previous year due to the sharp increase in number of rooms and belt tightening by Russian tourists, the most numerous of all foreign visitors. The occupancy rate dipped by 6 percentage points to 70 per cent.Besides, last year the average room rate at four- and five-state hotels too slid by a huge 14 per cent to VND2.7 million (US$126) per night.

Both segments thus saw a decrease in revenue per available room to around VND3 million/room/night for five-star and VND1 million for four-star hotels.

Greatest market share

By the end of last year Nha Trang had approximately 9,200 units in 43 land, villa/townhouse, and apartment projects.

The apartment segment had the greatest market share at 49 per cent, followed by land plots at 41 per cent.

Most apartment projects are located along the coast, including many on Tran Phu Street.

Landed property projects for second homes and investment are spreading to the west due to extensive land stock.

Due to affordable prices and construction flexibility, land plots are preferred and have the greatest transaction volume. There are six major land projects with prices ranging from VND3.6 million to VND9.6 million per square metre.

The villa/townhouse segment has prices ranging from 23.4 million to 51 million per square metre of land or dwelling prices of VND7.2-21 billion. There are four active apartment projects on Tran Phu with prices in a wide range from VND1.2 to 9.4 billion per unit.

Buyers, mainly from Ha Noi and HCM City, who look to purchase a holiday dwelling, prefer projects by the beach with sea views. However, due to limited supply, places in the west such as Vinh Thai and Phuoc Hai wards have become popular with buyers.

There are 34 planned residential projects with a total area of more than 1,100ha. The majority are landed properties and concentrated in the west and north.