Is resort real estate in Vietnam still a “promised land”?

Resort real estate is still considered a potential business segment for investors looking for long-term goals.

Resort real estates still attract long-term investor.

The bright future of the resort real estate market

In 2020, thanks to the good control of the epidemics, many coastal destinations in the country have seen signs of recovery from the middle of the year with increasing numbers of domestic arrivals, pushing the resort real estate market to warm up.

In the market report published by DKRA, the supply of houses is now concentrated in large tourism complex projects with a scale of hundreds of hectares which are well planned. Although the new supply and demand are only moderate, in the short term, the supply and demand is expected to increase as many projects are in the advertising and booking phase. For example, with the type of sea villas, the consumption rate in January this year increased by 78% compared to December 2020.

Commenting on the future of the resort real estate market, experts believe that this is still a segment with great potential that many investors aim for in the long term. Since 2017 until now, the number of people who buy resort real estate to invest in or enjoy the “second home” has steadily increased, although there are times when the market fluctuates, the actual demand is still very high.

Notably, if these projects are located in area with great potential, convenient locations to connect, the investment opportunities are huge, including small investments. These factors are considered a sustainable “profit guarantee” for resort real estate products. In particular, in the context that the supply of long-term property products is increasingly scarce and term real estate is gradually becoming a trend, the factors attracting customers and profitability are concerned by investors.

The prospect of resort real estate

In the long term, the resort real estate is considered to have plenty of chances to growth. According to Dr. Can Van Luc, there are 3 pushing forces for the recovery of resort real estate.

Firstly, the market supply and demand are more reasonable thanks to the regulation and the plan of the ministries.

Second, tourism is gradually asserting its role as a spearhead economic sector with a possible contribution of up to 12-14% of GDP by 2025.

Third, the trend of secondhome (second home) is increasingly popular under the impact of the epidemics. Thus, investing in this channel requires capital and persistence.

According to Dr. Nguyen Van Dinh, the number of Vietnamese touristsis still plentiful with over 20 million international visitors and 85 million domestic tourists each year. Therefore, Vietnam’s tourism will need more and more projects in the form of integrating tourism, entertainment, relaxation, shopping …

These positive signals create a foundation to promote tourism consumption, especially among the large middle class. These are the people who are willing to spend the total of 8 to nearly 10 billion USD when traveling abroad and they will turn to the domestic market in the new situation.

With that foundation, the real estate market will see growth in all segments. In particular, coastal real estate has made significant changes, attracting new capital flows into Quang Ninh, Binh Dinh, Quang Binh, Phu Quoc … The focus will still be on construction projects on a large scale of reputable brand.

It is forecasted that the resort real estate market will recover and resume vibrant growth in the near future along with the booming rate of tourism, promising to continue to be a valuable profitable channel for investors.

ASL LAW is the top tier Real Estate law firm in Vietnam for. If you need any advice, please contact us for further information or collaboration.


    Your infomation

    ***Other service of ASL LAW – full service Vietnam law firm ***
    Retainer service to enterprises International trademark registration
    Oversea investment consultancy for Vietnamese enterprisesPatent in Vietnam
    PCT Patent in Vietnam PCT Patent Vietnam Entry
    Intellectual property services (Vietnam IP Firm) Vietnam Patent Agent
    Trademark in Vietnam Vietnam Patent Firm
    Vietnam Trademark Agent Patent translation in Vietnam
    How to register trademark in Vietnam Vietnam Patent Translation Agent
    Copyright in Vietnam Vietnam IP Firm
    Vietnam Trademark Vietnam IP Agent
    Notes to company formation in VietnamM&A
    How to open company in VietnamBanking & financial services
    Open representative office in VietnamContract consultancy
    Establish company in VietnamEmployment and labor
    Corporate services in VietnamLitigation and dispute resolution
    Vietnam Law FirmFranchise in Vietnam
    Vietnam Antidumping Law Firm Vietnam Franchise registration
    Vietnam countervailing law firm Vietnam Business Law Firm
    Vietnam Real estate law firm Vietnam construction law firm
    Law firm in Hanoi Law Firm in Ho Chi Minh
    Contact Me on Zalo
    WhatsApp chat