Huge potential for developing resort property market With many property experts considering Vietnam a tourist paradise, resort real estate can serve as a gold mine for investors, although there are many hurdles to overcome with the taste of consumers becoming gradually more rigorous whilst supply is currently overwhelming the market. Following the real estate market recovery in 2014, resort tourism has begun to take the lead in terms of capital inflow with billions of US$ flowing annually into tourism destinations such as Nha Trang, Da Nang, Phu Quoc, Quang Ninh, and Quy Nhon, with new resort models utilising accommodation like condotels and beach villas. According to CBRE Vietnam, a provider of commercial real estate services, impressive growth numbers are ahead for the Vietnamese hotel industry despite a slowdown in growth rate to only 10.8% in 2019 compared to 2018’s figure of 20%. In addition, when compared to other countries regionally and throughout Asia, the nation enjoys impressive growth figures. Whilst discussing the future of the resort real estate market, Robert McIntosh, CEO of CBRE Hotels in Asia – Pacific, outlined a few key trends. As the Vietnamese tourism industry develops, resort real estate investors will have to diversify in order to maintain growth while also considering potential tourism destinations that have yet to develop, such as Nam Hoi An, Binh Thuan, and Ba Ria-Vung Tau, as well as diversifying product types whilst professionalising operational management. Along with expanding into new geographic locations, developers are also active in terms of developing new tourism real estate products, the most prominent being the model of coastal shophouses and shop villas located in the Phu Quoc and Ha Long markets. Another prominent trend is for financiers to invest in a wellness resort. This fresh niche in the market has huge potential to enjoy stronger development nationwide, largely due to the middle-class population …
