Vacation Property to Revamp

While apartments, villas and residential land are in a market freeze or losing value, the vacation property niche is showing signs of recovery.

 

In the second quarter of 2012, housing, villa and residential land markets remain slow. Newly completed projects are unattractive to customers. Buyers doubted margin prospects and price gains in this niche. Besides, the demand further weakened because of sky-high interest rates and tightened credit policy. Therefore, investors are changing their strategies to survive.

 

However, the second home market is showing signs of significant recovery in luxuriant projects. Alluring projects are situated in prime locations and in magnificent landscapes like Ha Long Bay. Phan Thanh Mai, General Secretary of the Vietnam National Real Estate Association, said: “Recent successful property deals are mainly in luxury second homes.”

 

Urbanisation blights the living environment and wealthy people aim to create better surroundings for themselves, thus looking for high-end residences with open design and in an ideal location. This explains why the second home market still grows.

 

According to surveys on vacation property demand in retreat centres like Ha Long, Nha Trang, Phan Thiet - Mui Ne, Long Hai - Vung Tau and Phu Quoc, signs of revitalization were seen in Ha Long. Investors caught sight of Caye Sereno recently introduced in Hanoi. This VND1,000 billion project is a joint venture between Tuan Chau Group and Jen Capital - a unit of Chiaphua, a Hong Kong-based industrial, consumer and property group. This project consists of 18 villas overlooking the sea and stretching on 3.3 ha of land south of Tuan Chau Island. The architectural and landscape design of Caye Sereno was undertaken by world-renowned Marcio Kogan, author of unique buildings like Paraty House, Cobogo House, and Bahia House. According to many investors, this project is warming up the deluxe property market in Vietnam.

 

Marc Townsend, CEO of CBRE, said: "Vietnam is a new market with a huge potential for beach homes. Although the market is changing now, I believe in a robust growth if investors are adaptable to changes and supply innovative products.”