Vietnam’s tourism is returning to the new normal and the resort real estate also begins getting back to the racetrack after a two-year hiatus caused by the COVID-19 pandemic, with numerous projects expected to be offered for sale in 2022.
HCM City (VNA) – Vietnam’s tourism is returning to the new normal andthe resort real estate also begins getting back to the racetrack after atwo-year hiatus caused by the COVID-19 pandemic, with numerous projectsexpected to be offered for sale in 2022.
The trend of branded leisure real estate is expanding,especially with the participation of big brands, to help improve projectquality, attract capital flows, and improve investment property value in thelong run.
Pham Ngoc Thien Thanh, Deputy Director of CBRE VietnamResearch and Consulting Division, said that the pandemic halted tourism activities in Vietnam's coastal localities. In the pre-pandemic period,Da Nang and Khanh Hoa were destinations for a large number of internationalvisitors, with over 3.5 million arrivals in 2019.
However, this number of visitors dropped sharply by morethan 80 percent in the 2020 – 2021 period when Vietnam temporarily closed itsborder.
The pandemic has also changed the tourists' “taste”, withBinh Thuan and Ba Ria-Vung Tau provinces preferred.
Thanh said that investment in the resort real estate markethas shifted from traditional markets such as Da Nang and Khanh Hoa to newlocalities like Ba Ria-Vung Tau and Binh Thuan.
Illustrative image (Photo: VNA)
In addition, construction of key infrastructure projects suchas Long Thanh international airport, Phan Thiet airport and Phan Thiet-Dau Giayexpressway has contributed to creating favourable conditions for the twolocalities.
Ba Ria - Vung Tau has three new projects that are open forsale for the first time, namely Hyatt Regency Ho Tram Residences, Ixora Ho Tramby Fusion and Venezia Beach Binh Chau (Phase 1) with a total of 382 villas. Inaddition, NovaWorld Ho Tram also opened for sale a new phase of Habana Islandwith 372 villas.
Binh Thuan also has a new supply with 270 villas ofthe NovaWorld Phan Thiet project.
The average selling price has increased continuously andachieved compound annual growth rates (CAGR) of 21 percent a year for the 2018 –2021 period in Ba Ria-Vung Tau, and 16 percent a year for 2017-2021 in BinhTuan./.
Real estate mergers and acquisitions (M&A) are expected to be a good source of FDI in Vietnam this year, said Savills, and forecasting M&A activity is likely to increase in terms of frequency and value.
Foreign investment poured into real estate hit almost 2.7 billion USD in the first quarter of this year, outpacing the figure of the entire 2021, according to the Ministry of Planning and Investment.
Residential real estate is one of the segments considered by Vietnam Report Joint Stock Company (Vietnam Report) as having strong growth potential in the property market. Accordingly, the new supply and the expectation of a high floor price will increase profit margins for real estate businesses.
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Illustrative image (Photo: VNA) 
Illustrative image (Photo: VNA) 
