“To carry growth forward, hospitality real estate developers in Vietnam will have to go through market diversification, paying attention to potential non-traditional areas such as Nam Hoi An, Binh Thuan and Ba Ria-Vung Tau, as well as diversifying their product offerings and bringing in professionals to manage their properties,” said Robert McIntosh from CBRE.
Vietnam’s tourism real estate market has the potential for strong development, but utilities and services are needed to attract investors, heard a seminar organized by the Vietnam Real Estate Association (VNREA) this week.
Besides expanding into non-traditional markets, developers were also active in creating new hospitality products for sale, the most notable of which were coastal shophouse or shop-villas in Phu Quoc Island and Ha Long City.
According to the representative of CBRE, by the end of the third quarter of this year, each of these two markets had roughly 2,000 units launched, with a sales rate of about 90 percent. Current developers in these products were mainly top-tier developers, which helped with the absorption of existing launched supply.
Shophouse or shop-villas can be used for various purposes such as retail and hotels, and as such had attracted many individual investors who had some prior experience in the sector.
The representative of CBRE also noted the growing interest in developing wellness resorts. Although this format was already popular in the region, it was still relatively new in Vietnam and growth opportunities were abundant, given the fact the number of middle-class Vietnamese was expected to witness the fastest growth in Southeast Asia over the next five years. Tourists from North Asia were also increasingly looking for tourism products that incorporated wellness treatments.
Looking forward, Vietnam would continue to be a key target in the expansion plans of many professional hotel operators. Not only well-known international hoteliers such as Accor, Marriott and Best Western, but also Vietnamese groups such as Lodgis, Sailing Club, Silk Path and Wink were looking for new projects to gain more market share.
According to experts, hospitality designs that could foster memorable experiences would be in high demand. Research showed that tourism groups in different segments had different preferences in terms of hotel design, so developers conduct market research on their targeted customers in order to implement a suitable design./.