Earlier this month, PPC An Thinh Danang JSC (PPCAT) signed a deal with the nation’s leading real estate sales agents, who are confident in selling the 1,186 apartments of Nimbus tower, the second phrase of Wyndham Soleil Danang.
After the success of Ethereal, the first skyscraper in the central city of Danang and which boasted 882 apartments, Nimbus is to be its heir, built at the four-tower complex of Wyndham Soleil and ideally situated nearby My Khe Beach. As PPCAT’s maiden luxury residential and hotel development, the complex will stand 57-storeys at its tallest point and will consist of hotel rooms, serviced-apartments, conference facilities, restaurants, and retail spaces.
With poetic views of the East Sea, the complex developer expects it to be an outstanding addition to the city’s architectural landscape as well as a magnet for both tourists and investors.
“The construction of Nimbus will be completed in the second quarter of 2022. This time frame is a challenging but achievable target for us to complete a building scaled at three times more than a regular hotel,” said Nguyen Thi Minh Phuong, deputy general director of PPCAT.
Phuong noted while many developers had begun to sell their properties right after they completed construction of basements, PPCAT has a consistent philosophy of focusing on quality of the building before launching the sales to market.
With the vision of this development to replace other symbols of Danang to attract tourists to visit and experience the destination, this building is also meant to satisfy worldwide investors, who are seeking opportunities to step in Vietnam’s most livable city as their second homes.
Increasing appetites
Vietnam’s coastal locations are a magnet for international tourists thanks to a tropical climate and 3,000 kilometre-long beautiful coastline. Among them, Danang is the red-hot property market because of its proximity to famous World Heritage sites such as Hoi An, Hue, and My Son Holy Land.
In addition, Danang is home to one of the six most beautiful beaches in the world, My Khe Beach. In the first nine months of 2019, the city hosted around 7,173,500 visitors, an increase of 18.4 per cent, of which nearly 2,811,800 of them were from outside the country.
Economic expert Dinh The Hien explained that investors from the North had outnumbered those from the South because northerners had a more-diversified investment portfolio.
“They are eager to invest in areas in the South which are far from their hometowns. Especially, they are more interested in famous tourist destinations where they can find luxury tourism property projects developed by prestigious developers and high potential for long-term return,” said Hien, adding that northern investors avail themselves of every investment opportunity.
Meanwhile, southern investors are more intent to closeout following inspiration.
Despite the different attitudes, they both acknowledge real estate is the most profitable channel to invest in Vietnam. “Over past years, investment in property has been more profitable for investors than investing in other channels,” Hien said. “But nowadays, many of them are changing investment strategies, shifting from high-profit but risky products to long-term return and safe products.”
Instead of investing in big cities like Hanoi and Ho Chi Minh City, where real estate prices are cooling down, affluent investors have begun to pour money into second-home serviced apartments or villas in so-called newer cities where the markets are more young and fresh. The second home can help to generate a stable investment return and become the sweet escape for them to enjoy a luxury lifestyle away from a life swamped with work.
“This is a trend in many developed countries. Therefore, second-home properties in well-known tourist destinations are being hunted by wealthy investors,” said Hien.
Points of difference
Hien said investing in condotels could generate high return but also make investors suffer huge losses if they failed to choose the right development. Therefore, he advises investors to place attention on risk reduction before making any investment decision, by accessing advantages of hotel-apartment projects including location, market demand, and the reputation of the developer and operation.
“In my perspective on investment, I prefer a less-risky project. This means the return may be low, but the risk of loss is minimum. Therefore, I will choose to invest in a project with clear legal status and high liquidity,” said Hien, adding that Wyndham Soleil Danang is a wise option.
Hien explained with the advantage of strategic location, international quality construction, and management carried out by prestigious brands, Wyndham Soleil Danang promises to be a prominent resort property in the most livable city. PPCAT acknowledged the concerns of investors so that it also took cautious steps before launching the first Wyndham five-star to the nation.
“Building a 50-storey building near the sea with unique architecture is not an easy thing. We have worked hard on research to design and build a tower not only at the highest safety but also ensuring connectivity and harmony with the sun, wind, and the sea,” said PPCAT’s Phuong.
She cited the standard of wall-bearing construction and fireproof doors that are implemented, at two times higher than set requirements. PCCAT also supervised every detail of the project by itself during the construction process.
“The luxury class and quality of the project can be evident in the involvement of the world-leading brands in design, management, and equipment at the building. We want to ensure the customer service capacity and operation in the building are optimised, enhancing the satisfaction of residents,” she continued.
When the criteria of location and quality have been resolved, the involvement of a reputable management and operation brand will help to operate the development effectively and reach the return expectations of investors.
In Vietnam, Wyndham now manages 19 hotels and resorts nationwide, including Wyndham Garden in Hanoi, which is also developed by PPCAT.
As a member of Wyndham Hotels and Resorts, Wyndham Soleil Danang (Ethereal Building) will connect to 77 million loyal members of Wyndham Rewards who can be its guests in the future.
In addition to having Wyndham as the Hotel Manager, PCCAT reveals that customers who own the next buildings developed after Ethereal can decide to operate their own apartments in the most effective manner.
“I think this is a project offering new experience to customers. It is not just the best project, but a product for people to invest in for the experience of their family. They can manage their own building autonomously and effectively,” said Phuong.
Danang currently lacks high-quality projects, which will lead to an increase of new developers, as investors are continuously interested in the highly-profitable potential in this market. Instead of focusing merely on profits, only projects which differentiate themselves from the rest in unique designs, prime locations, and outstanding quality services like Wyndham Soleil Danang can ensure for a high long-term return for investors.
