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‘Coastal real estate still has a lot of thrust’

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According to experts, the recovery of the tourism industry when Covid-19 passes will be the driving force for coastal real estate development.

Areas with potential upside areas appear

Sharing in talk The thrusts of Southern coastal real estate broadcast on the evening of October 5 on VnExpress, Mr. Vo Huynh Tuan Kiet, Director of CBRE Vietnam housing project said that Vietnam is one of the countries. has a great advantage with a long coastline, many islands. This is a great advantage of the tourism industry.

I think that when Covid-19 is under control, Vietnam will still be a big tourist attraction, creating development for coastal real estate. We can see that during the past time, many large domestic and international investors, 5-star operating units have stepped up investment in Vietnam, showing the great potential of this segment in the future. Mr. Kiet said.

Looking at the issue of investors directing cash flow to emerging markets in coastal areas such as Binh Thuan, Ba Ria – Vung Tau, Mr. Le Duy Binh – Managing Director of Economica Vietnam said that it depends on calculation. , the individual needs of investors. Some people use that product, or attach it to personal interests such as traveling or finding comfort in old age. There are also many investors looking for areas for possible profits in the short, medium and long term.

Some areas such as Binh Thuan and Vung Tau are new low-lying areas, supported by infrastructure changes. Areas of Binh Thuan, Ninh Thuan, Phan Thiet, Ba Ria – Vung Tau, or the Long Hai – La Gi – Phan Thiet road are bringing great opportunities for investors.

Experts in the seminar The thrusts of real estate on the south coast. Screenshots

Real estate projects on the Long Hai – Binh Chau – La Gi – Mui Ne street have many values ​​in themselves. But it also benefits from public investment projects such as Long Thanh airport, Phan Thiet airport, the project connecting to the East Expressway… bringing great connectivity, helping to reduce travel time. between projects and big cities where investors live, Mr. Binh shared.

Besides, this road connects many landscapes and areas with valuable soil and natural features suitable for tourism development with a longer time. This creates expectations for investors while other investment channels are not easy.

From the perspective of a market research expert, Mr. Kiet said that along the route that is and will be developing this tourist real estate, there is La Gi area, which is considered underdeveloped. But if considered separately, in the coming time, La Gi has advantages because it is located in the planning of the southern coastal route, located near many large infrastructure projects. In addition, La Gi has a planning roadmap to the city, has a clear development plan. The advantage is close to Phan Thiet, but La Gi has a lower price. We call the potential upside range. If compared with similar areas, La Gi can create great resilience due to the advantage of being adjacent to the sea, having a development advantage, similar to Phan Thiet, Ho Tram… if clearly oriented.

Looking back at the market areas that used to have strong growth such as Phu Quoc and Ha Tien, Mr. Vo Huynh Tuan Kiet assessed that these are all areas with tourism development. Shaping tourism creates attraction for tourists and services for visitors spring up. Accompanied by the Government’s support for infrastructure planning. These factors will improve the traffic connection platform, creating favorable conditions for tourists and investors. In addition, the driving factor for the price increase is the investment of the big guys. In areas with strong development of resort real estate, there are large investors involved, only then can develop service infrastructure to welcome tourists. Thereby, tourism real estate will increase in price.

Such a scenario can happen in any area, especially in areas with tourism potential like La Gi. If there is support from big investors, it will help service infrastructure increase, creating momentum for residential and tourism real estate to increase, Mr. Kiet said.

Notes when investing in coastal real estate

According to Mr. Le Duy Binh, the southern coastal markets in addition to traditional tourism products also have the potential to develop tourism associated with businesses and products associated with meetings and conferences (MICE).

Besides, Mr. Binh also emphasized that this area has an increasing investment of foreign investors. Typically, large projects on liquefied petroleum gas, offshore wind power… have a close connection with the development of regional real estate. Then real estate will serve workers, skilled engineers… This is a product that investors should not ignore because they are an important source of customers. They use those services themselves, attracting their friends to continue using real estate products in these areas, Mr. Binh assessed.

Also according to this position, the appearance of billion-dollar projects will create two big impacts. One is to stimulate, create incentives for larger investments in infrastructure. Projects will continue to benefit indirectly or even directly from these routes. Secondly, in terms of economic development, the projects will increase the province’s budget and increase people’s income. Thereby, stimulating the demand to buy real estate products of people in Ba Ria – Vung Tau, in Phu Yen or Binh Thuan, forming a group of investors in these very areas.

Meanwhile, Mr. Kiet assessed, any market area with potential for resort real estate development will have product lines suitable for each different audience, creating diversity for the market. In particular, land plot products are favored by investors because of their lower starting price and ample room for price increases. Products with beautiful locations and good views are welcomed by investors. When the market develops, these products have the ability to increase in price and have high liquidity.

Giving advice to investors when putting money down in the coastal real estate segment, Mr. Binh mentioned a number of factors such as: product usefulness, legal transparency, profitability; commitment of local government…

Perspective of Lagi New City, a complex project to welcome the potential of La Gi real estate, Binh Thuan.

Perspective of Lagi New City, a complex project to welcome the potential of La Gi real estate, Binh Thuan. Photo: More New City

In another perspective, Mr. Kiet said that coastal real estate is not suitable for the majority. Advice for individual investors is to understand the nature of the product. Different from other categories, especially housing, coastal real estate is purely an investment product, largely dependent on the tourism potential of that product. However, if the tourism potential is not suitable, it will bring low efficiency, difficult to increase good prices, Mr. Kiet commented.

Therefore, investors need to pay attention to whether the area has potential for tourism development or not, and must find out information about the planning of that locality. Investors need to have a long-term view, have a long-term investment strategy; balance the budget, in order to ensure the safety of cash flow, learn about relevant legislation carefully. Finally, for those who have idle money who like to invest profitably, they should choose capable project developers to avoid risks.

Hoai Phong

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