Strong growth expected in resort market this year

The SeaLink City resort in the south-central province of Binh Thuan. Viet Nam's resort market is expected to see strong investment this year.-VNA/VNS Photo Thanh Ha

Nguyen Tran Nam, chairman of Viet Nam Real Estate Association, said the local economy has gained stability and growth in 2015, while the income of locals has also increased. Therefore, there is a demand among the people to own a property, which includes a resort product.

Meanwhile, the local market has launched many resort projects with large scale, synchronous infrastructure and reasonable selling prices, so the projects have attracted numerous local buyers, he said.

Development of the resort market in 2014 and 2015 was to kick-start a new development period in the local resort market because Viet Nam has many favourable natural, social and cultural conditions to develop the market, including nice beaches, a long coast and higher income, Nguyen Nam Son, chairman of Tanzanite International said. Tanzanite is an international real estate development company developing the Hamptons Ho Tram, a luxury resort development in Ho Tram, Viet Nam.

Meanwhile, a resort has become a new property product on the local market, and as the income of the Vietnamese increases so does their demand for tourism, he said. Those factors are favourable for the domestic resort market and ensure strong development in the next five to ten years.

Ngo Quoc Dung, deputy general director of HB Management, working for the development of New Hoi An City project, said Viet Nam is one of the countries with a high number holidays with about 138 days off per year, accounting for 40 per cent of total days in a year. Therefore, the local people need at least 690 million nights for accommodation each year.

In addition, Viet Nam attracts about seven million foreign visitors with high demand on resort products and high expenditure in tours, he said.

"Those are reasons of strong development of the local resort market in the future, and we will have no worries about lack of demand for resorts," Dung said.

Do Thu Hang, head of research and consultancy at Savills Viet Nam's Ha Noi branch, agreed that the demand of locals for tourism has increased recently.

"At present, there is a demand from the Vietnamese any time of the year and not just in the summer or the Tet festival," she said.

"High demand and stability of the local economy, as well as an increase in the confidence of buyers, will support the local resort market in developing further in the future because it is in the first stages of development. Therefore, the local resort market will continue positive development this year."