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Investment in resort real estate
At the seminar on "Forecast of resort real estate market in 2020" recently held in Ho Chi Minh City, Dr. Dinh The Hien, financial expert, said that investing in 1m2 of tourism real estate brings added value. better than other real estate types. In 2019, the average room rate will increase by 2.8% (the segment of 4-5 stars); The hotel room performance index (Revpar) increased by an average of 8.9%; Room occupancy increases by 8% on average per year.
According to this expert, in the past 3 years, the number of resorts with standard operation and management in coastal areas of Nha Trang, Phan Thiet, Ba Ria - Vung Tau ... tends to increase sharply in both price and capacity, so the business efficiency of resorts is quite high.
According to calculations by Mr. Dinh The Hien, the average unit price of a hotel room is about VND 1.4 million / day, the occupancy rate is about 60%. Direct operating costs account for about 22%, maintenance costs, management and accounting for about 7%. After deducting expenses, the revenue of these hotel rooms is about 9.1% / year, increasing by 2-3% annually.
This profit can vary greatly from rents and capacity. The rate of profit can range from 5.4% - 13.7% depending on room rates and occupancy. On the other hand, profits can fluctuate greatly from the investment costs. How revenue and profit grow depends on the location, quality of design, construction and operational management of the project.
When compared to other investment channels, according to Mr. Dinh The Hien, resort real estate is more effective. For example, gold only increased in this year, but on average in the past 5 years, gold has increased by less than 2%. In the last 3 years, the increase is only 4%.
Buying apartments, townhouses for example, such as apartments or townhouses for rent in Ho Chi Minh City or Hanoi, yields about 4%. Thus, the profitability of the resort apartment is still higher than other investment channels such as gold, USD ...
However, in terms of liquidity, gold and USD have the highest liquidity before going to real estate. Therefore, if compared, these investment channels have their own advantages and disadvantages in profitability, but ultimately, buyers of vacation real estate with the above profitability are also attractive enough compared to other channels.
Concluding the same point of view, financial expert Bui Quang Tin also said that currently, resort real estate is still an attractive, popular investment channel, and has an advantage over other investment channels such as gold and securities. Stock, deposit. According to statistics over the past 20 years, the average price of gold only increased by 8.65% / year while the level of risk is very large. On the other hand, according to statistics, more than 95% of gold investors, both professional and amateur, failed both domestically and abroad.
In terms of stocks, the stock market has been going up and down in the past 6 months, only about 950 -1,000 points, so if investing, the profitability rate will not be high. As for savings, this is a good investment channel compared to stocks and gold investment. Normally, if the average interest rate for 12 month savings is about 8%, except for 3% inflation, we will get 5% benefit. However, investing in resort real estate is still the best compared to the above investment types.
Which type of resort real estate is popular?
However, in the context of the real estate market heavily developing resort real estate projects, the biggest concern of the current investors is what type of investment?
When investing in resort real estate, the most common problem that experts recommend is that investors should pay attention to the legality of the project, followed by the commitment to profit.
Dinh Dinh Hien also stressed that the location of the project needs to be beautiful and convenient to exploit, ensuring the quality of construction, design and competitive price.
In addition, around the resort area must have enough service facilities such as restaurants, markets, supermarkets ... And this is the trend of 2020, this trend is for the middle class, People with money like to have 1 property is the apartment in the beautiful sea. Therefore, investors should choose to invest in apartments in the beautiful sea, with potential future. Because apartments in beautiful waters are not always redundant. Therefore, when a person has money to own but does not invest early, then the apartments in that beautiful sea area will be no more.
In addition, this expert further explained that, in 2020, if you invest in a "quality", sustainable value marine resort apartment, it will bring many valuable values for investors such as: nice decor for families and relatives; bring a lot of resort benefits or a quite good profitability rate compared to other safe investment channels (The annual return rate of the resort apartment is about 9.1%) and at the same time able to work. increase investment efficiency by choosing a good location.
Agreeing with the same opinion, Dr. Su Ngoc Khuong said that Vietnam tourism and sea tourism are developing strongly, so it is necessary to have quality resorts and resorts, therefore, beach resort real estate is the priority choice of investors.
According to a survey of the Department of International Business and Marketing, Ho Chi Minh City University of Economics, 65% of investors choose to invest in real estate in coastal areas (2019). At the same time, according to the survey of VN Express, 74.8% of investors choose the second house in the coastal tourism area (June 2016). Therefore, by 2020, investors should choose resort projects with factors such as: (1) Beautiful sea environment, convenient transportation; (2) Can combine relaxation and exploitation, travelers are in need; (3) Nature and environment are preserved, there is no element of business-people exploitation to harm; (4) Limited supply, ensuring the possibility of future added value.
According to expert Bui Quang Tin, if investors own some apartments, some tourist apartments in Ha Long, Nha Trang or Quy Nhon, Phu Quoc, Vung Tau, the profitability rate of the year Last year, 2018 - 2019 averaged about 20-30% / year.
Not only that, if investors also choose good locations, locations near the sea such as in Vung Tau, in the past 2019, the profitability ratio reached to 30-40% / year. Therefore, investment in resort real estate in the next few years will continue to grow and is a very good trend. But the important thing that investors need to keep in mind is that they need to pay attention to the legality, the investor, the rate of profit commitment and the right position to be able to generate high profitability. must bear the risk.
Besides, Mr. Tin also affirmed that in 2020, if investing in resort real estate, investors should invest in forms such as tourist apartments, villas or detached houses right along the coast. Because in addition to the profitability rate from renting this resort property, investors will have other very profitable advantages when investing. In addition, if there is a resort real estate, the investor will show a high level, a new life style, enjoy a more modern life style ...
Compared to the real estate market in coastal areas such as Long An, Binh Duong and Dong Nai, Ba Ria - Vung Tau is considered an emerging market. However, according to the analysis of experts, Ba Ria - Vung Tau is a hot region in satellite real estate markets.Detail