Recently, seeing the potential for the development of Vietnam's tourism service industry, infrastructure factors are focused on upgrading, tourism development policies & convenient transportation stimulate demand, helping resort real estate grow clearly. So do we understand resort real estate? Let's learn about this type of real estate with AHS:
What is resort real estate?
Resort real estate is a type of real estate investment based on the timeshare model (fractional ownership) that started in the US in 1959, with products such as villas, hotel rooms, apartments or other forms built in tourist and resort areas.
Sold by investors to customers and coordinated with a third party to operate and exploit for rent, bringing in money for investing customers. Therefore, investing in resort real estate has 2 main functions: resort tourism and exploitation for rent.
Popular types of resort real estate
Hill and mountain villas
This is a type of isolated ecological villa, providing absolute privacy for the owner when built on the slopes of mountains and hills with the ability to cover all the landscape from above. Hill and mountain villas are planned quite methodically, possessing a unique design but very solid and sturdy. Coming here, visitors will be able to put aside the worries and troubles of life to immerse themselves in the fresh and cool natural space.
River and lake villa
Making the most of the surrounding landscape, river villas are often built in scenic areas, cool spaces along rivers and lakes. With the design of "leaning on the mountain, facing the water", river villas bring good feng shui, spreading prosperity and harmonious scenery between people and nature.
Beach villa
Beach villas are often designed to be extremely modern and luxurious, located on pristine and beautiful beaches. With the habit of going to the beach, this is a type of resort real estate with potential for tourism development and high profit opportunities.
Condotel
Condotel needs a business owner to manage and operate the leasing issues. Design style: no lack of amenities from the most basic amenities such as living room, kitchen, bedroom, ... with full facilities to help visitors experience a lifestyle no different from their own home. Typical location: built in big cities and large resorts.
Shophouse/Shoptel for tourism
The phrase shophouse/shoptel is a combination of: “shop” and “hotel” or “house” so it can be understood that it is a model that combines both business and living and relaxation. Design style: the design of the shophouse is a rigid and solid design that cannot be edited.
Typical location: Shophouse/Shoptel is usually located in an urban area or resort. This model is popular in many countries with stable and developed tourism such as Marina Bay in Las Vegas, Macau or Singapore.
Investment trends in resort villas
The trend of investors “hunting” for coastal villas to invest in vacationing with their families or renting them out has been a booming trend recently, especially with steady growth every year. The boom in Vietnam’s coastal resort real estate market is fueled by factors such as improved infrastructure, a strong growth in international and domestic tourists, increasingly diverse and high-quality investment products, and low risks when investing in resort villas.
The demand of foreign corporations is mainly to buy hotels for operation, focusing on tourist attractions such as Hanoi, Ho Chi Minh City, Nha Trang, Da Nang, Quang Ninh. Or emerging localities such as Ninh Thuan, Quy Nhon (Binh Dinh), Van Phong (Khanh Hoa), Phu Yen, Phu Quoc because these areas have large land funds, creating added value and high competitive advantages over time.
To invest in resort villas, investors need to pay attention to the following factors:
The project has complete legal procedures.
Resort real estate is in a booming period, but not all projects meet the State's regulations on legal procedures. According to the provisions of Clause 1, Article 55 of the Law on Real Estate Business No. 66/2014/QH13 dated November 25, 2014 and Point b, Clause 2, Article 19 of Decree No. 99/2015/ND-CP dated October 20, 2015 of the Government, investors of commercial housing projects must send a document to the Department of Construction where the housing is located, along with documents proving that the housing is formed in the future and is eligible for sale.
Real estate experts also advise that buyers should not be attracted by beautiful locations and offers of high profitability, but ignore the legal aspects of the project they intend to invest in. Resort real estate is often a valuable asset, so buyers must be more careful to avoid legal risks. When investors do not meet the legal requirements, it will affect the rights of future buyers.
Product liquidity
In addition to legal issues, the liquidity of resort real estate products is still a big question. For example, in the Condotel market, some apartments are priced up to 80-90 million/m2.
This price is not enough to attract investors who buy and resell to make a profit. This group of investors gradually withdrew from the resort real estate segment, causing the market to cool down. Therefore, there are only long-term investors who care about the real value of resort real estate.
Through this article, readers will have a better understanding and grasp of the definition of resort real estate, what types of resort real estate are popular and generate profits before doing real estate business. From there, choose the appropriate investment forms. Hopefully this article brings useful information to readers.
