International tourists increase sharply

Right before Hanoi welcomed the first Indian guests in a group of more than 4,500 tourists from an Indian billionaire's pharmaceutical company on August 27, 2024, Times of India - an Indian newspaper published an article introducing a series of famous destinations in Vietnam, likening them to "magnets" attracting tourists.

The majestic natural beauty of Ha Long Bay (Quang Ninh), the blend of old and new in Hanoi, the historic Hue capital and the charming Hoi An ancient town, in Ho Chi Minh City and the Mekong Delta, providing an insight into both urban and rural life... are positive comments from one of the large and very potential tourist markets like India. This also marks a new "bright spot" for the domestic tourism industry, opening up opportunities for the tourism industry in general and the resort real estate market in particular.

With the title "You can travel in these 7 countries for less than $30 a day" published in the prestigious American travel magazine Travel & Leisure on August 25, 2024, the appearance of Vietnam (ranked 5th out of 7 countries) in the article by author Evie Carrick shows that Vietnam is becoming the leading destination in the region for experiential tourism.

Data from the General Statistics Office shows that in the first 7 months of 2024, international visitors to our country reached nearly 10 million, an increase of 51% over the same period last year and an increase of 1.9% over the same period in 2019 - the time when the Covid-19 epidemic had not yet appeared.

In particular, famous tourist capitals such as Phu Quoc (Kien Giang), Nha Trang (Khanh Hoa), Ha Long, Van Don (Quang Ninh), Da Nang... recorded a breakthrough again, at the same time also causing the demand for investment in resort real estate to increase again.

In fact, it is no coincidence that when the general context of the real estate market has not really improved, the Libera Nha Trang project jointly implemented by KDI Holdings and Masterise Homes recorded a record number of bookings of more than 10,000, more than 5 times the number of products launched on the market this time (about 2,000 units). Even according to Dong Tay Land - one of the main distribution floors of the project - the number of bookings is up to 16,800.

The recent increase in international visitors to Nha Trang is one of the factors that makes investors interested in the profitability of accommodation activities. Since 2023, Korea has become the largest tourist market in Vietnam with millions of visits, of which Nha Trang ranks 2nd in the 3 most attractive destinations for Korean tourists, just after Phu Quoc.

Meanwhile, the number of tourists from Europe has also increased continuously since the beginning of 2024. Most markets have grown positively, including major markets such as the UK (+25%), France (+33%), Germany (+27%), Russia (+75%), along with Italy (+61%), Spain (+38%), Sweden (+27%), Switzerland (+25%), Denmark (+26%), Belgium (+26%), Norway (+21%)...

"One of the outstanding problems for resort real estate in recent times is legal procedures, including land issues, investment procedures, real estate business activities... However, with the system of new laws taking effect from August 1, 2024, the difficulties will be resolved, helping to speed up project implementation and increase supply to the market. - Deputy Minister of Construction Nguyen Van Sinh"

Notably, although it is the low season for international tourism, the number of visitors from European markets in July still increased compared to the previous month.

This is a very positive signal from a key area of ​​Vietnam's tourism, showing the effectiveness of the open visa policy and the efforts of management agencies, localities, and tourism businesses in promoting and promoting tourism in key markets such as Russia, the UK, France, Germany, etc.

Nha Trang, Ninh Thuan, Phu Quoc or Da Nang are favorite destinations for visitors from Europe and this group of visitors always sets high standards for the quality of accommodation facilities, becoming a driving force for resort real estate developers.

In Da Nang, Sun Group recently introduced to the market the Sun Symphony Residence Da Nang project complex. Previously, in Thanh Hoa, this resort real estate developer launched The Pathway subdivision, part of the Sun Grand Boulevard project, located at Sam Son beach square.

In the North, Quang Ninh is the priority choice from the markets of China, Korea, Japan, Australia, etc. and most likely India. Here, after Sonasea Harbour Van Don City of CEO Group, the market welcomes a new supply of high-end resort apartments from the Crystal Holidays Harbour Van Don entertainment resort complex on the shore of Bai Tu Long Bay, invested by Everland Van Don JSC. Notably, in addition to the system of 102 utilities, at this project, the investor has brought in an AI robot to guide visitors.

In Hai Phong, the sixth hotel of the Wink Hotels chain was topped out in Hong Bang district in August with a total investment of 50 million USD. The project is developed by Indochina Kajima Development, providing nearly 230 hotel rooms and nearly 80 serviced apartments.

Previously, in mid-June 2024, this Japanese real estate developer was licensed by the Phu Yen provincial government to build the Mandarin Oriental project in Bai Nom (Hoa An village, Xuan Canh commune, Song Cau town).

“The biggest support for tourism - resort real estate in 2024 comes from the development opportunities of the tourism industry. That is the visa relaxation policy that continues to be effective along with the 2% VAT reduction policy for goods and services, along with many support promotion programs and tourism exhibitions being organized," said Ms. Pham Thi Mien - Deputy Head of Market Research and Investment Promotion Consulting Department (Vietnam Real Estate Brokers Association - VARS) and believes that the type of beach apartments will be the highlight of the resort real estate market because it both meets the need for ownership and can be exploited for rent, creating cash flow.

Motivation from new policy

Mr. Dinh Minh Tuan - Sales Director of Batdongsan.com.vn assessed that the resort real estate market is facing new opportunities. Macro factors of tourism, retail... have all shown signs of recovery since the beginning of 2024, positively affecting resort real estate.

The level of interest in resort real estate types has clearly improved in the second quarter of 2024. Specifically, compared to the first quarter of 2024, the level of interest in condotels increased from 5 points to more than 20 points; beach townhouses increased from 60 points to 100 points; beach villas increased from 80 points to 100 points..., showing that investors' interest has returned to the resort market.

In particular, from August 1, 2024, many legal bottlenecks related to this segment will gradually be resolved when related laws such as the 2024 Land Law, the 2023 Housing Law, the 2023 Real Estate Business Law and the 2023 Credit Institutions Law officially take effect and guiding documents are issued.

According to Mr. Dang Truong Giang, Deputy General Director of Mai Viet Land, there are still many resort real estate products that are of interest at the present time. This is the reason why Mai Viet Land - a unit that has successfully distributed many resort real estate projects, then focused on the apartment segment when this market flourished, returned to the resort market to anticipate new development trends.

“The top priority for resort real estate at the present stage is not cash flow, attracting investment to wait for price increase, but the legality and value of the real estate”, Mr. Giang emphasized and added that resort real estate to attract investors must first have complete legal status, reputable investors with great potential, then the products must have suitable and realistic prices, recently, resort products with stable legal status with prices of 2-4 billion VND distributed by Mai Viet Land have been positively received.

Mr. Hoang Hai - Director of the Department of Housing and Real Estate Market Management (Ministry of Construction) said that with the new legal corridor, bottlenecks related to land valuation, procedures for approving investment policies or legal status for new resort products... will gradually be resolved, thereby promoting market participants to return to this segment. According to Mr. Hai's forecast, the supply of resort real estate will improve in 2024, expected to increase by about 20% compared to 2023.