Developers shift their interests to the hospitality sector due to the growth in tourism.
Vietnam’s economy has been changing fast. During 2016 a large chunk of public investment was in land. This is a move away from gold that was once the favoured investment asset. Many investors are turning to property development as the new means to make money and to profit from the current economic climate. Property values have been climbing and even the office market is generating record yields.
Of the land development that is occurring, hospitality accounts for 10 percent. This sector of real estate is expected to grow at an exponential rate throughout the rest of this year. One example is the tourist destination of Phu Quoc Island. Situated off the coast of Cambodia in the Gulf of Thailand, this island has been a popular holiday destination for sometime. However recently developers have been keen to hop on board its success with some of the biggest names in property development including Vinggroup and Sun Group trying to get in on the action.
Da Nang is another resort chomping at the development bit. It is hot on the heels of Nha Trang which according to Savills is home to 3,367 apartments and 1,199 villas. Both offer great connectivity in addition to their long glistening beaches ideal for beach worshipers.
It is unsurprising that developers have identified the potential in tourism. Vietnam is continuing to be thrust into the global spotlight due to its rapid growth. More flights are being operated to meet demand and development is keeping up pace to fulfill demand. Plus the numbers of foreigners arriving in Vietnam has risen. Expected to be boasted further with the Asia Pacific Economic Cooperation summit that Da Nang is hosting in 2017. The hospitality sector will continue to flourish. As such many experts believe that a pattern will start emerging with investors moving from luxury properties to investing in the hospitality sector due to the potential of its success.