Idle money eyes resort properties as investment

Buyers look at the model of Lotus Residences at a recent sale open -Photo Syrena Viet Nam

Industry experts found that owning a resort property as a second home was becoming a popular trend amid the country's socio-economic development boosting citizens' income, urging them to look for investment channels for their idle money.

While the interest rates stayed low and the stock market experienced huge fluctuations, the resort property market with guaranteed profits has become an attractive investment destination for the rich.

From the beginning of this year, many high-end property projects in coastal provinces and cities such as Kien Giang, Khanh Hoa, Nha Trang, and Da Nang were released into the market and received huge attention from buyers and attracted great capital inflows.

The BIM Group, one of large property developers in Viet Nam, said it saw great potential in the resort property segment, given the infrastructure development, rising travelling demand and especially rising demand of seeking safe and profitable investment channels.

The BIM Group, during the past two years, continuously launched sales of two high-end tourism property projects – Little Vietnam and Lotus Residences – located in the group's Halong Marina Urban Area, northern Quang Ninh Province, and the sales were beyond expectation, reflecting the emerging trend of owning a second home.

BIM Group's Halong Marina Urban Area designed as a miniature of Sydney.-Photo Syrena Viet Nam

The group said 101 out of 109 townhouses of Little Vietnam were sold out within three months and a large number of successful transactions involving Lotus Residences' townhouses were recorded this year. On October 25, the BIM Group will open the fourth sale of Lotus Residences since June when the project was first introduced.

This has revealed that investors were grabbing projects with well-developed infrastructure, quality and guaranteed profits from the developers.

The resort property segment has benefitted largely from the development of the infrastructure system, which enables people to travel more conveniently, industry experts said.

For example, Quang Ninh Province was becoming a more attractive tourism destination with the construction of the highway connecting Ha Noi, Hai Phong and Quang Ninh, reducing travelling time from the capital city by one hour. The Infrastructure development also helped channel huge capitals to resort property projects in Phu Quoc.

One of the most important factors which drove buyers to look for a second home was profit, according to the BIM Group, which added that the group guaranteed a profit of 8 per cent of the townhouse's value per year in the first three year of operation under the rental pool management model, worth totally VND1.7 billion (US$75,560), besides other attractive promotions.

"Quality is also important," Le Minh Dung, director of BIM Group's property business said, while urging second home seekers to take prestige and capacity of developers into careful consideration before choosing projects to invest in.