High-end real estate sales pick up speed

A conrner of Vinpearl Premium in Nha Trang. Photo

Many high-profile projects have started construction or have been released for sale, attracting a large number of buyers due to the promise of profits.

From the beginning of this year, Vingroup has sold hundreds of villas developed under Vinpearl Premium brand in Nha Trang, Da Nang and Phu Quoc.

Recently, more than 300 villas in the FLC Samson Beach and Golf Resort complex in Thanh Hoa Province were sold in the first sale. Last month, FLC Group launched the construction of a seven-star beach golf resort in Quy Nhon City, Binh Dinh Province.

Villas of Naman Residences and The Point projects in Da Nang City were also released for sale.

Nguyen Ngoc Thanh, deputy president of the Viet Nam Real Estate Association (VNREA), said high-end properties, especially luxury resort projects in tourist cities and provinces, were making strong recovery with a large number of successful transactions.

Ngoc said resort projects were expected to boom when the amended Law on Housing, allowing foreigners to buy houses in the country, took effect on July 1.

Experts said an increasing number of investors were pouring money into high-end projects as long-term investments, as the property market emerged as a more attractive investment channel when compared to deposits, the stock market and gold.

An expert from VNREA said that a number of investors were seeking high-end projects with promising profits, such as villas in luxury resort projects along the beach.

Buying property and then leasing it out would generate greater profits than keeping money in savings when the interest rates were about four to five per cent per year, analysts said, adding that more people were adopting this kind of investment method.

For example, Vingroup promised a lease profit of at least eight per cent per year for 10 years for Vinpearl Premium villas. IDJ Investment also pledged a 10 per cent profit in the first 10 years for investments in the A-class Chamvit Tower.

An individual investor in Ha Noi said he had recently bought a villa on Truong Sa Street in Da Nang with the expectation of making large profits from leasing the villa.

A representative from the Thanh Do Investment Development and Construction JSC., the developer of Naman Residences, was quoted by as saying that more than half of the orders for purchasing its villas came from investors in Ha Noi and HCM City.

Christopher Piro, director of Viet Nam Sotheby's International Realty, was quoted by the newspaper as saying that property investors had shifted to long-term investments for profits.

The latest report by the construction ministry said the real estate market was on the path to recovery in the first five months of this year, reflected in stable prices, high liquidity, gradually appropriate product structures and falling inventories, as well as improved confidence.