(Photo: Ngoc Lan)
The resort real estate segment is forecast to be a bright spot in Vietnam’s real estate market this year, with great potential in attracting investment capital, the “Real Estate Investment Forum 2019: Risks and Opportunities” held on June 22 heard.
Mr. Vo Tan Thanh, Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said that the resort segment, especially the condotel segment, has been targeted by many domestic and foreign investors this year. “The potential for developing the segment is still significant due to Vietnam’s high economic growth and its attractive natural landscapes,” he added. “However, the development of the real estate market poses many risks. Databases and information on the market, from planning, selecting investors, and implementing projects to transactions are not synchronous and lack transparency.”
Mr. Nguyen Tran Nam, Chairman of the Vietnam Real Estate Association (VNREA), told the forum that Vietnam’s legal framework still lags behind the development of resort real estate. “Investors expect legal regulations will be completed soon,” he said. “It is also necessary to recognize resort real estate as a product that can be purchased, sold, inherited, and transferred conveniently, especially in the context of Vietnam’s tourism growth fluctuating from 15 to 20 per cent per year.”
Meanwhile, Professor Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, said a solution is to add provisions to the Land Law, the Housing Law, and the Real Estate Business Law on the management method for multi-functional properties like condotels.
Mr. Do Huy Hoang from the Housing and Real Estate Market Management Agency at the Ministry of Construction, said the Prime Minister has issued Directive No. 11/CT-TTg on a number of measures to promote the stable and healthy development of the real estate market, in which the ministry is required to supplement construction standards for types of apartments, condotels, tourist villas, and officetels.
According to analysts, investors must also be professional regarding their resort products in order for the market to develop in the right direction.
Ms. Tran Thi My Loc, Deputy General Director of the Vinhomes JSC, said resort real estate is not just constructing a building like a house. “In housing project investment, we only complete the project and put it into use and provide management,” she said. “In resort real estate, construction is just the initial stage of the investment process, with a long way ahead to bringing profitability to buyers.”
