(NCĐT) Due to strong changes in infrastructure, capital flows are “stepping up” into second-class markets such as Binh Dinh.
In 2019, Viet Nam has 18 million international visitors, comparing to a growth rate of 16%. It showed that Vietnam’s tourism industry has surpassed Indonesia’s to reach the 4th position of international tourists in ASEAN, as well as reach the top 10 countries which have the fastest-growing tourism over the world.
Da Nang and Nha Trang, which may be entering a saturation period, witnessed the overheating growth over the past 3 years because of the recent liquidity problem of the Cocobay complex. This is a reason why capital flows into tourism are stepping up into second-class markets, in which Binh Dinh is emerging as a new potential place due to the strong change of infrastructure, combine d with an attractive price.
Typically, Phat Dat Real Estate Company deploys Nhon Hoi Ecological Urban Area with total investment more than VND 25,000 billion. After Quy Nhon Melody project, Hung Thinh Group continues to deploy the second project called Quy Nhon Grand Center. It is expected that this year, this investor will launch a 7.3-hectare polder project in Mui Tan area.
List of big brands that investing in Binh Dinh province includes FPT Group with Education – Artificial Intelligence complex, Bamboo Capital launch 5-star hotel Radisson Blu Quy Nhon or VinaCapital is also agile with Maia Quy Nhon Beach Resort … With many large-scale projects, this wave of investment is expected to create a new motivation, help to awake the potential of the most famous tourist destinations in the Central region.
The infrastructure in Binh Dinh was witnessed significant improvements recently. Typically, after Phu Cat airport was upgraded, they were opening more routes which connecting directly with Hanoi and Ho Chi Minh City, the number of tourists increased significantly to the coastal city of Central region. In the first 9 months of 2019, there were more than 4.12 million tourists to Binh Dinh province, which is higher than the total number of tourists in 2018, comparing to a growth of more than 20%.
In 2020, the main target of investors will penetrate the international market. Recently, Phu Cat airport has been approved by the Government to upgrade to the international airport with the first routes connecting to Northeast Asia. According to many analysts, international flight routes will be the key for tourism market such as Quy Nhon to enhance development. “International flights are operating which contribute to attract ing tourists and a large number of foreign investors, experts to live and work in the coastal city”, reported by Mr. Nguyen Nam Hien, General Director of Property X.
Besides the airway, in the period of 2021-2025, Quang Ngai – Binh Dinh Highway will be built. When it completed, this section will connect to the existing Da Nang – Quang Ngai highway it will help to extend the central tourist route.
If a condotel with the coastal view in an area of 40m2 in Da Nang, it will be currently higher than VND 2.3 billion, compared with the product in Quy Nhon is VND 1.5 billion. The competitive price level is also the reason to stimulate capital flow to Binh Dinh.
Of course, the breakdown of some condotel projects in Da Nang and Nha Trang recently is a very powerful reagent for the condotel market in general and Binh Dinh in particular. Recently, Mr.Pham Hong Ha, he Minister of Construction shared that there was an adjusted standard for condotel in order to solve the situation of less transparency in the market.
The Ministry of Construction reported that the lack of regulation in this type of real estate has led investors not to take contracts seriously. According to the new construction standards, condotel projects have started clearly about regulations on population, planning, floor space, and minimum area. Minister Pham Hong Ha shared: “After the publication of a new standard, there are enough legal provisions to control investment in condotel basically.”
Condotel market may warm up because of the removal of legal bottlenecks gradually. In addition, CBRE Vietnam shared that investors need to be flexible in designing new products which suitable for customer’s experience in order to develop a condotel segment sustainably. That may be the type of wellness resort. This is a new type and a lot of potential for development in Vietnam because the middle-class population in Vietnam is expected to grow fastest in Southeast Asia in the next 5 years and tourists from North Asia increasingly prefer products.