Nha Trang's property market boosted by foreigner demand

A corner of Nha Trang City. The city's property market has warmed up, boosted by tourism business. - VNA/VNS Photo Ngoc Ha

Many apartment projects have increased their prices. The rates of Costa Nha Trang project have risen 37 per cent over the past two years, the Cham Oasis Nha Trang projects by 10 per cent over the past five months, the Stellar Nha Trang project by 20 per cent over the past three months and that of Muong Thanh Nha Trang 2 by 55 per cent over the past one year.

Khanh Hoa's tourism business performed well in the last five years, Savills Viet Nam, a foreign property service provider, said. The annual expenditure grew by 20 per cent and the annual growth rate of tourist arrivals was 18 per cent.

The amended Housing Law allows foreigners to have a 50-year leasehold tenure in residential projects. That is a positive development for the Nha Trang property market, according to Savills Viet Nam.

The heating up of the property market in Nha Trang has motivated investors to develop their apartment and villa projects by the end of this year, including in Phuc Khanh 1 urban area, Royal Marina, Riviera and Mipeco urban area, cafef.vn reports.

Nguyen Nam Hien, general director of Hung Thinh Land, said Nha Trang would continue to attract investments in tourism property in the future.

Foreigners who want to buy houses would try to invest in Nha Trang's property market, he said. Viet Nam's participation in the Trans Pacific Partnership (TPP) agreement would boost the central city's property market as the demand for housing and resorts by foreigners rises.

In addition, property investors said, the People's Committee of Khanh Hoa Province had released a specific plan to convert the old Nha Trang airport into the largest urban trade and financial centre of the region. The plan would be a golden opportunity for the resort property market in the province.