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| Tourism real estate market: new investment channel |
| 04/Feb/2010 Intellasia | Vietnamnet |
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| 4 Feb, 2010 - 11:08:07 AM |
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At a time when the real estate investment in big cities has become saturated, many businesses are pouring capital into coastal relaxing villa projects. This is a new investment channel with the very highly safe development index.
Vietnam's tourism real estate market now is in starting period but seems to have high potential. Compared with the general property market, the vitality of tourism property depends much on the development of tourism service generally whereby investors totally can expect in the break-out of Vietnam's tourism property segment in the near future.
In the north, Cat Gia-Cat Ba tourism urban site invested by Vinaconex-ITC (member of Vinaconex Corp) will supply over 800 ecological villas, international standardised 5-star hotels by 2012 after completion. Vinaconex ITC wants to turn the project into the intentionally special eco-tourism centre. To date, the first area of the project, Tung Thu Villa Village has been finished.
Marc Townsend, managing director of CBRE stated that the resort condos market segment remains new in Vietnam because the country's tourism sector is still underdeveloped against regional nations. Vietnam has not been able to catch up with Bali of Indonesia of 1990s in terms of infrastructure. But, the current circumstance offer good opportunities for investors because Vietnam's tourism is predicted to jump high in next years.
At present, many investors are eying coastal property projects embedded with tourism development goals and the prominent attractiveness, which is regarded as a safe investment channel.
General Tourism Office reported in 2008 that Vietnam welcomed 4.2 million arrivals of intentional tourists, earning total turnover of $3 billion. In the first seven months of 2009, over two million of international tourists visited Vietnam, bringing in the revenue of $1.9 billion.
Vietnam's tourism sector this year expects to welcome 6-6.5 million arrivals of foreign visitors with total turnover of $4.5 billion.
Nguyen Quang Hai, chair cum general director of An Phat Group Joint Stock Co said that previously investors bought property with expectation to earn profit when the market was overheated. But now, they are more intelligent and cautious when seeking the shortcut to withdraw capital. As for tourism real estate projects, investors surely will select the projects with more sustainable development prospect.
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