Vietnam developers rushing to build resorts catering to demand from wealthy

Vietnamese developers are flocking to invest in resort property projects in the country, catering to high demand from wealthy buyers and the potential for major profits.
Developers are investing in resort projects even without incentives from local governments, the news website VietnamNetBridge has reported, which is unusual in a country where the state has so much sway in how development happens.
In a talk with Thoi Bao Kinh Te Vietnam newspaper, Le Tuan Anh, General Director of Thang Long Xanh, the main investor in Zen Resort in Ba Vi district in the suburb of Hanoi, said he really did not have good knowledge about the long term potentials of resort real estate projects in the suburbs. However, after deciding to spend 120 billion dong  (US$5.74 million) to develop the project with an aim to “explore the resort real estate market in the north,” he has realized that the demand is very high. The director said that the interest in eco- real estate of “big guys” in Hanoi is beyond his expectations.
“Ten villas were sold within a day when the villas were put on sale in the first phase in early March. Meanwhile, we receive more and more calls every day from the people who ask about when more villas will be put on sale in the second phase,” Tuan Anh said.
Several years ago, there were only several sporadic eco-real estate projects in Luong Son district in Hoa Binh province, or Son Tay area in Ba Vi District of Hanoi. At that time, these were just mini resorts which were leased to a limited number of rich families who went there on the weekends on holiday.
More and more resort real estate projects have launched mainly in areas in the west of Hanoi and communes of Hoa Binh province, bordering Hanoi.
Projects which are currently under construction include the eco villa complex Top Hills in Luong Son district, The Queen Villas project in Ba Vi, Tan Vien Resort, the high grade residential quarter in Luong Son developed by Petrowaco. Numerous other resort projects are expected to launch over the next few months as well.
In early March, Archi Reeco Hoa Binh decided to invest 800 billion dong (US$38.29) in a project which aims to turn the 66 hectare area in Luong Son district in Hoa Binh into a high grade resort by 2017.
Prior to that, Thang Long Xanh introduced investors to the Zen Resort project.
Real estate developers are continuing to pour their money into resort projects, even though local authorities aren’t offering any investment incentives. Developers have to spend their own money to build roads and infrastructure for electricity and water supply.
Chair of Hoa Binh provincial people’s committee Bui Van Tinh said in Hoa Binh alone, there are 19 eco real estate projects, mostly located in the areas bordering Hanoi, and the areas along the Hanoi-Hoa Binh highway.
“People may think that investors are rushing to invest in Hoa Binh because we offer attractive incentives. However, I can say that no incentive has been offered. Investing is simply the choice of the investors,” he said.
Meanwhile, explaining the investment decision, a manager of Sudito, the investor of Country House project in Ba Vi, said that the infrastructure conditions have developed well in the west of Hanoi. Besides, he said, “living in the suburbs, working in the inner city” is the new trend of many rich young people nowadays, which explains why the demand for resorts in the suburbs is increasing.

Posted in: Real Estate