Eco- property:Shifting to Suburban Areas

2010 is considered a successful year of the resort real estate market of Danang, with a series of projects evaluated to be worth millions of dollars offered on the market, highly recommended and rushed for by investors. The reason lies in the fact that Danang is home to beautiful coastline and scenery. Moreover, it is located near several world heritage sites, which turns Danang into a prominent tourism strip on the “Central heritage road” and a centre of resort real estate during recent years.

 

As assessed by Savills, in 2010, 80 percent of real estate investors in Danang come from Hanoi. This attraction has just emerged from last year and is promising significant growth in 2011.

 

The latest survey of CBRE Vietnam shows that the demand for resort villas in the Central and Southern region is on a trend to shift to suburban areas of large cities, especially that of Hanoi.

 

For investors in Hanoi, pouring dozens of billions of Vietnamese dong into a project or a villa in the Central region is no longer an appealing option. Large investments lead to lengthy operation times required for capital return. That is why many investors lose interest in expensive projects.

 

Moreover, the resort villa model in the Central and Southern parts follows the trend of real estate residence. This model is no longer attractive, while the second home model can meet user demand as well as bring profit in idle time.

 

The second factor which reduces market interest in Danang resort real estate is that most real estate purchases here are more strictly for investment, not for accommodation, due to geographical distance. This is contrary to current demand, when demand for relaxation does not concentrate on one or two long holidays during the year but demand weekend relaxation destinations is accelerating.

 

When demand changes, profit is reconsidered. A large majority of investors shift their capital flow to resort real estate projects in suburban areas, only 45 to 60 kilometres from the centre. Especially, the West of Hanoi and Hoa Binh are attractive destinations for eco real estate investors in 2011.

 

Some eco real estate projects in Hoa Binh which have been recently paid attention to include The First Villas in Ky Son district, Hoa Binh province on an area of over 10 hectares, Top Hill Villas in Cu Yen commune, Luong Son district on an area of 12 hectares and, most recently, The Melody Villas on an area of 33 hectares and resort areas on Dong Suong Lake.

 

With the advantage of being able to learn from similar developments in previously developed resort areas like Ba Vi and Vinh Phuc, Hoa Binh has mapped out its vision, planning its eco areas to be standardized and sustainable.

 

CBRE Vietnam believes that Hoa Binh lures investors not only because of good information about its growth potential, but also significant improvement in its infrastructure system, especially the comprehensive development in transportation when the Lang Hoa Lac Road project connecting Hoa Binh province is completed.

 

Mr Le Duc Hai, General Director of INT Group - a leading enterprise in eco real estate in the North, says Hoa Binh is endowed with beautiful natural scenery and rich culture, and it’s on the Luong Son – Dien Bien tourism route, which gives Hoa Binh advantages in developing eco resort projects.

 

Mr Hai also adds that INT Group is developing a project called “Green Ky Son” with four interconnected groups of resort villas, including Ho Du, The First Villas, The Melody Villas and Ho Dong Ben eco township, aiming to bring investors the highest investment value and highest value for customers.

A realty expert shares that when an investor wants to maximize his investment, he needs to take into consideration such factors as natural landscape, investment region according to the government’s orientation, geographical distance and the most important thing, accumulative strategy. “The decision to invest in eco real estate projects in the suburban areas of Hanoi, especially in Hoa Binh, is an outstanding trend in 2011,” affirms this specialist.