Opportunity to develop resort real estate in Ba Ria - Vung Tau

The supply of major markets has leveled off, making the resort real estate investment capital tend to shift to Ba Ria Vung Tau and Phan Thiet ...

Stagnation in traditional markets

Da Nang, Nha Trang and Phu Quoc are Vietnam's traditional resort markets, with the highest accumulated supply in the country. However, recent survey data shows that the growth of these markets is slowing down.

According to a report by CBRE Vietnam, the cumulative supply of resort villas in three main markets, Da Nang, Khanh Hoa and Phu Quoc, has an average annual growth rate in the period of 2017 to the third quarter of 2019. respectively 2.6%, 0.9% and 7.3%. These figures decreased sharply compared to the corresponding levels in each destination in the period 2015-2017 of 5.5%, 35% and 27%.

Representatives of Rio Land - the developer of a 23-hectare resort project in Vung Tau said that the main reason came from many objective reasons such as the depleted beautiful land fund or the airport overcrowding earlier than expected. . Accordingly, Da Nang airport's operating capacity in 2018 was 13.2 million passengers compared to the designed capacity of only 10 million passengers, Noi Bai airport received 25.9 million guests with a designed capacity of only 25 million. million passengers, especially at Tan Son Nhat airport, are overloaded to serve 38.4 million passengers while the designed capacity reaches 28 million passengers.

"The overload of the infrastructure system leads to worries about declining demand, so although new projects come from popular brands, investors tend to be more reserved than before," analysis representative.

Tan Son Nhat Airport on peak occasion.

Also according to CBRE Vietnam, in the first 6 months of 2019, the total number of tourists to Da Nang was estimated at 2.72 million, up 21% over the same period last year, while the occupancy rate decreased by 2, 4%.

In Phu Quoc, the representative of the General Department of Tourism said that, although there are many hotels and resorts operating well, the average room capacity here is only about 50%.

Opportunities for new markets

The decline in new supply in traditional destinations goes hand in hand with expansion in emerging markets in 2019. In a recent report, Mr. Robert McIntosh, CEO of CBRE Hotels Europe Asia - Pacific said, to continue to grow, resort real estate investors in Vietnam will have to diversify the market, considering both potential tourist destinations but not yet developed. developing similarly to Nam Hoi An, Binh Thuan, Ba Ria - Vung Tau.

Opening ceremony of Lagoona Binh Chau project in Ho Tram, Binh Chau, Ba Ria - Vung Tau.

Provinces with convenient connection to key markets such as Ba Ria - Vung Tau (near Ho Chi Minh City), Quang Nam (near Da Nang), Binh Thuan (4.5 hours drive from Ho Chi Minh City), Ha Long (2.5 hours drive from Hanoi) are having many opportunities.

In particular, Ba Ria - Vung Tau has many advantages such as more than an hour's drive from Ho Chi Minh City, has a well-connected transport infrastructure with a focus on Long Thanh International Airport and tourist capacity at levels. high. Currently, most of the accommodation services here only focus on meeting the basic room needs, not meeting the long-term needs of travelers.

In 2018, Ba Ria - Vung Tau welcomed 15.8 million visitors but stayed at only 3.1 million, due to the lack of high-class resort complexes (fewer than 10 five-star resorts across the province). . This creates room for the development of 4-5 star hotel, hotel and apartment supply sources to grasp the trends of creativity, pioneering, focusing on the experience and relaxation of visitors.

Vung Tau real estate has an advantage near Ho Chi Minh City and Long Thanh airport.

Ba Ria - Vung Tau is one of the key national tourist development. The province is planning to plan more than 1,100 hectares of land in Chi Linh - Cua Lap to build a resort town, creating an expensive route extending from the Chi Linh - Bai Sau - Cua Lap tourist area. This place has attracted the attention of many developers and management units at home and abroad, with large-scale projects, meeting a variety of short and long-term leisure needs of tourists.

Source: Vnexpress

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