Luxury beach villas awash with buyers attracted investors

October 09, 2007 | 18:30

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Sales of beachside luxury villas in Vietnam are surging as investors look to diversify their real estate portfolios. CB Richard Ellis managing director Richard Leech said the market would heat up in the future. “Our existing projects are receiving a very healthy response from our customers,” Leech said.

The tide has changed for the luxury seaside villa market

Leech pointed to the recent The Nam Hai development that sold out 40 high-end properties in record time as proof of the investor confidence in luxury property.
Each villa was sold from between $500,000 to $2 million, or from $2,500 to 3,000 per square metre.
“At the moment Vietnam’s villas are selling for as much as those in other countries in the region,” Leech said.
An additional 20 resorts, on the books for Danang, will also have close to 500 luxury villas up for sale that Leech expects to become some of the most sought after properties by the time they come to market.
Most investors are thought to be interested in leasing out their properties where returns could fetch between 8 to 12 per cent per year.
Leech said that foreign investors and expatriates living in the country would be the first wave of buyers followed by an increasingly wealthy segment from within Vietnam.
“This is an example of large sums of money being spent by wealthy Vietnamese people who buy for investment purposes,” he said.
Leech confirmed that government regulations permitting foreigners in Vietnam to own private property would be act as a catalyst for demand of luxury villas on the beach.
“The new rules will make it more attractive for developers to build and sell these products in Vietnam for long-term lease to foreigners,” he said
At present, resorts which are offering luxury villas in Danang include the Son Tra resort, Eden, Hanoi Tourism resort, KOR resort and the Vina Capital Resort and Golf Course.

By Bich Ngoc

vir.com.vn

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