Hanoi (VNA) – Real estate in coastal centrallocalities has proved its attractiveness to both investors and buyers thanks tothe booming tourism industry.

For the past years, Vietnam has recorded acontinuous increase in the number of tourists.

Data of the General Statistics Office show thatin 2018, the country welcomed 15.6 million foreign arrivals and 80 milliondomestic travellers, up 2.7 million and 6.8 million respectively from theprevious year. The number of foreign visitors continued to grow well in thefirst seven months of this year, 7.9 percent year on year, to almost 9.8million.

Vietnam hopes to attract about 18 millionforeign holidaymakers and serve 85 million domestic tourists this year.

The central region, home to many renowneddestinations, is increasingly attractive to property investors as the localtourism sector is now in need of better infrastructure.

Many insiders said while prices of land alongcoastal roads in tourist destinations like Nha Trang, Da Nang and Quy Nhon wererelatively low 10 years ago, they are soaring at present, even up by 10 timesfor real estate at prime locations. 

For example, when the Golden Bay residentialarea in Cam Ranh Peninsula, Khanh Hoa province, was unveiled a few years ago,it was priced at 3.6 million VND (155 USD) per sq.m. on average. Now, pricesrange from 18 million VND to 25 million VND per sq.m or even 40 million VND.

Besides, the expanding urban middle class iseasily attracted to condotels that can both satisfy their recreation demand andgenerate income while having lower prices than those in Hanoi or Ho Chi MinhCity, the country’s two biggest cities.

Incentives that central localities give to coastalreal estate investments have also added another encouragement to developers’intention.

According to Savills Vietnam, coastal propertyis drawing investors and buyers’ attention.

The Novaworld Phan Thiet project, recentlyunveiled in Phan Thiet city of Binh Thuan province by NovaLand, has had morethan 2,000 street houses and coastal villas purchased in only threeweeks. 

Meanwhile, over 1,300 coastal land lots of theNhon Hoi New City resident area in Quy Nhon city of Binh Dinh province havealso been sold like hot cakes, its developer Danh Khoi Real Estate JSC said.

Since the beginning of 2019, an array of largeprojects have made debut in coastal provinces like Binh Thuan, Ba Ria-Vung Tau,Binh Dinh and Quang Ngai. Savills Vietnam said this signals a vibrant period ofthe central region’s property market.

The consultancy noted the local market isexpanding with a wider range of resort property products targeting more buyers.It is driven by tourism development, which is followed by the growing accommodationdemand of middle-class tourists.-VNA