Vietnam’s Property Growth Fuels
Development is not confined to the main cities: along the Vietnamese coast, centres such as Da Nang and Phu Quoc island are experiencing growth spurts of their own. The residential-property drivers here are newly wealthy Vietnamese, who are buying holiday homes, and international tourists, who are buying or renting villas. According to the government’s tourism agency, international arrivals to Da Nang rose 38 per cent in 2017; in Phu Quoc, they rose 72 per cent in 2017.
Super-prime coastal villas — those featuring private swimming pools and access to communal facilities such as restaurants and golf courses — typically range from $700,000 to $2m. At the Nam Hai, a Four Seasons-branded villa resort in Hoi An on the outskirts of Da Nang, IndoChina Properties is selling a one-bedroom villa with a pool and access to resort facilities for $850,000.
Eachfront villas at Melia Ho Tram at the Hamptons, a resort about two hours’ drive from HCMC, start at $790,000, available through Savills. At the Banyan Tree resort in Lang Co, Indochina Properties is selling a three-bedroom villa for $1.28m. Since high-end coastal properties began springing up in 2006, most buyers have been Vietnamese, says Blackhall. He notes that 85 per cent of those who bought within a recent development funded by VinaCapital near Da Nang were locals.
Vietnamese have an affinity with owning real estate and now have access to modern, well-designed products,” he says. Property prices have been rising fastest in coastal areas. The average price of a vacation villa in Da Nang increased from $2,300 per sq metre in 2016 to $2,500 per sq metre in 2017, according to CBRE. In Phu Quoc, the average price rose from $2,100 per sq metre to $2,400 per sq metre over the same period. And demand seems to be keeping pace with supply: almost 100 per cent of the approximately 1,800 vacation villas in Phu Quoc had been bought by the end of 2017, compared with about 90 per cent of the 1,100 available at the end of 2016..