Rudolf Hever - Director of Hotel & Savills Asia - Pacific Advisory Services has made quite honest evaluations on Vietnam's property market and condotel model considerations.
Not only Condotel, this new type of resort is also a magnet for capital investment
Da Nang building regulations condotel management and tourism villas
There will be clear legal arrangements for condotel and resort villas
Accordingly, Rudolf Hever said that Vietnam's tourism market continues to grow at an impressive rate. In the seven years (2010 - 2016), the number of international visitors has doubled from 5 million to 10 million. In addition, domestic visitors also increased significantly, from 28 million to 62 million visitors. This development has brought the golden period for the resort market, especially the condotel, although there are still many considerations.

Nha Trang, Da Nang, Phu Quoc continued to grow strongly in tourism demand

In 2016, Nha Trang welcomed nearly 1.2 million international visitors, an increase of nearly 23% compared to 2015. Similarly international visitors to Da Nang has reached nearly 1.7 million, up 33% over 2015. The rights have greatly supported this development, as there are now nine international airports across the country compared to five international airports in 2010. These airports are currently undergoing further upgrades. , Opening more stations as well as expanding the runways. Visa policy for tourists also improved significantly, as the process became easier and the fee was lower than before.

Phu Quoc is a typical example of this support when international visitors have soared 25% (2014 vs. 2013) when visa exemption policy for foreign visitors has been applied. This is also the only place in Vietnam to adopt this policy, "said Savills representative.

Positive signals from the market contributed to the attraction and confidence of investors, leading to strong competition in supply in the next 2-3 years as the market continuously witnessed the birth of New project. According to the Savills Hotel Advisory Group, in Nha Trang and Cam Ranh, medium to high end luxury hotel and resort supply is forecast to grow at an average annual rate of 29% The next year. Similarly, Da Nang and Phu Quoc have strong supply growth rates of 30% and 27% respectively over the next three years.

However, the real estate market is volatile and can be affected by many factors. Typically in 2014 - 2015, the number of international tourists to Vietnam fell sharply as the number of Chinese and Russian tourists fell sharply, influenced by the dispute over the South China Sea and the devaluation of the ruble, has strongly impacted. Travel market. Especially for markets dependent mainly on the source of customers from this market such as Nha Trang.

Therefore, if demand does not catch up with future growth in supply, capacity and room rates are expected to continue to be under pressure and investors will have to weigh the efficiency of the future. Hope and budget for the project in the coming years.

Considerations of the Second House model with condotel hotel apartment

Mentioning the resort market can not fail to mention the explosion of investment trends resort projects. At present, there are about 36 Second Home projects providing over 7,000 units with medium to high rates being operated in Vietnam.

The real estate market is expected to continue to grow strongly as a large wave of residential property supply is concentrated in six coastal locations (Khanh Hoa, Da Nang, Phu Quoc, Ho Tram, Ha Long & Quang Nam) of more than 17,000 units will be introduced into the market within the next three years. However, the number of completed projects is still very modest compared to the number offered in the market.

"Condotel is currently the most popular type of Home Products." By 2019, the condotel will account for 65% of the resort property market in coastal markets. Main, "said Rudolf Hever.

Mr. Rudolf Hever added: "The point to keep in mind is that the" tel "(hotel) in the condotel model.In most cases, we find that very few operational factors such as guest This is particularly worrying because it is difficult for the Investor to secure a portion of the profit that has been committed to generate a revenue stream for the pledged condotel contract. Perfect as a hotel and impressive business results. "

However, most projects are not well planned for the operating element and the fierce competition in the segment has led investors to increase their exposure as well as apply the policy of commitment to profitability. To attract buyers.

Products with this commitment program are becoming more risky for buyers, as some developers are less experienced but grow.

Large-scale projects without a strong source of funding such as equity or bank funding. These risks mainly come from operational after completion of construction, and on-site The level of commitment to profit is higher than the cash flow from the business activities. Then, the owner needs to add more capital to ensure commitment. At present, the committed rate of profit in Vietnam is quite high, some projects up to 12% in 8 years. Therefore, when choosing real estate products for investment, buyers should consider Select quality products from reputable investors. On the part of the investor, when selecting the development model, the investor should make good planning as well as carry out the feasibility study from the beginning in order to obtain a product suitable to the market conditions as well as the ability Financial performance and good future operation.