RESORT VILLA FOR SALE PROJECTS
Normally, secondary investors at these resorts spend 3-4 to four weeks per year at the resort, and pay a resort manager to lease their villas to visitors. There are also severe legal restrictions on foreigners’ ability to invest in real estate project s in Vietnam (see Appendix 2). Secondary investors' incomes are, put simply, the total leasing fees paid by guests minus the fees paid to the resort manager. The business potential of a resort depends, broadly, on the development of Vietnam's tourism industry and, specifically, on the traffic at its particular location. It remains difficult, however, for secondary investors to project the potential of a beach and the marketing capacity of resorts' developers. Survey analysis also demonstrates that beaches in Mui Ne-Phan Thiet, Nha Trang, Hue's Lang Co, Danang's Non Nuoc and Quang Nam's Cua Dai have great development potential, Nghe An's Cua Lo, Binh Dinh's Quy Nhon and Quang Binh's Nhat Le beaches are host to sluggish markets; Haiphong's Do Son and Thanh Hoa's Sam Son beaches are, to their detriment, too far from big cities; and, Vung Tau's beaches are unclean. It is expected that there will be considerable demand for second homes and / or retirement homes for such properties from Viet Kieu, of whom some 480,000 returned to Vietnam in 2006 – up 5% on 2005. Some of the existing resort villa ‘For Sale’ projects include:-
In 2005 Son Tra Resort & Spa began work on a resort of nearly 200 villas on Son Tra peninsula off Danang's coast, and sold part of the resort to secondary investors. Not far from Son Tra Resort & Spa, Paradise Resort also put up for sale nearly 150 villas near Ngu Hanh Son Mountain.
The Nam Hai, American backed Paradise Resort was marketing 150 luxury villas in 2005 in Danang with a starting prices of USD$175,000 for a 1 bedroom villa going up to over a million. Rumour has it that Mick Jagger is amongst the owners.
In early 2006 Hanoi based Hung Vuong Construction Investment and International Cooperation Company began selling villas inside Flamingo Dai Lai resort situated on 100 hectares on land located along the Dai Lai Lake in the northern province of Vinh Phuc 40 kilometres from downtown Hanoi and 10 kilometres from Noi Bai airport. The resort does not comprise of any high rise blocks and 70% of total land area has been dedicated to the natural landscape. The complex consists of 400 villas and a 5 star hotel, a 200 room resort and apartments for rent, shopping center, sport center and utilities. The starting price for the villas was USDS$80,000 - USD$409 / sqm including the cost for land and infrastructure at USD$295 / sqq and construction ie USD$114 / sqm - with land plots ranging from 300 sqm to 1,000 sqm, varying between lakeside, spring or pine tree forest locations. The company will spend USD$20 million building infrastructure for the project. There has been considerable interest in the project because the Flamingo Dai Lai is considered one of the most ecologically friendly places in the northern region. The developer of Flamingo Dai Lai resort, which has an average room occupancy rate of 50%, has pledged to help their secondary investors recoup investment capital at an annual rate of 7-8%. Adjacent sites were being cleared by other developers for multi-million projects including the 30 hectare Paradise Villa & Entertainment Compound, a 36 hole golf course by Dai Lai Company, and the 170 hectare Thanh Xuan Weekend Villa and Tourist Complex.
In mid-2006 the HCMC based Suoi Nuoc Company started selling apartments, penthouses, townhouses and sea-view villas at its USD$9.5 million 2.2 hectare Aquaba Resort in Mui Ne (Ne Cape) in Phan Thiet 200 km from HCMC, all of which were scheduled for opening in 2008. According to Suoi Nuoc, more than 60% of the units available have been snapped up, though the developer is looking to up the total number of apartments, houses and villas in the resort from 105 to more than 160. The Aquaba Resort will have 2No 7 floor blocks with 60 apartments, 33 town houses & 6 villas. All units are fully furnished and there is a swimming pool, tennis court, spa, restaurant, bar, children's area and other facilities. The units are being sold under a long-term lease and investors can choose to rent out their property or join a rental pool that manages it for them. Vietnamese can get a 10 year loan for 70% of the property costs through the local An Binh Commercial Joint Stock Bank. The apartments cost from USD$50,000 to more than USD$200,000 with the 3 room town houses going for some USD$200,000, and a 4 room villa for USD$500,000-USD$600,000 including indoor furniture.
The USD$125 million Sea Links Golf Resort project by Rang Dong is the first to be built on sand dunes overlooking the sea of Ham Tien-Mui Ne area about 10 kilometers from the heart of Phan Thiet City. The project covers 132 hectares along the beachfront around 60 meters above the sea level. A month after announcing the Sea View villas, Sacomreal had sold out all the 76 villas, taking to 157 the total number of sold villas. All of the 247 villas in the project will be located in 4 areas, namely Sea View, Royal Garden, Paradise and Panoramic, Anh said. Each 400 square-meter villa is quoted at USD$250,000. Customers must place a USD$2,000 deposit if they register to buy a villa there. After a contract is signed with Sacomreal, customers must pay 30% of the total value, and the remainder will be paid in the course of construction. Villas overlooking the ocean were initially selling from USD$195,000. Sea Links' villas will be completed by the end of 2008 and individual, family and corporate nominee golf membership cards cost USD$17,500-USD$19,000 each.
One of the first villa projects in Ba Ria was Hai Phu covering 1.4 hectares adjacent to National Highway 56 and so convenient for Vung Tau, Long Hai and HCMC. Hai Phu Housing Construction and Trading Company, the developer, said that although the Hai Phu villa project was only half-finished in 2006 some 40 semi-detached villas had been sold for between USD$75,000-USD$125,000. The fact that the province was relocating its administrative agencies to Ba Ria was said to be a key driver for the increase in investment in housing development.
In mid-2007 An Vien Company, the developer of the 71 hectare Phu Quy residential and tourism complex in the beach city of Nha Trang, announced that 90% of the 400 land plots had been sold off for the construction new villas ranging between 188 to 500 sqm per unit. The 400 land plots were put up for sale a year before at a price of USD$625-USD$1,000 per square meter. An Vien was also planning to develop and sell off 40 completed villas.
The Trung Thuy Joint Stock Company, the owner of the luxury Lancaster will begin construction on a 5 star 113 hectare resort in Xuyen Moc District, 145km from HCMC, and will be comprised of a 5 star hotel with 230 rooms, 120 villas and bungalows, a golf course and many tourist facilities. The total investment for the resort excluding the cost of land is USD$40 million. The company plans to sell 60 villas and bungalows at the cost of USDS$500,000 each.
At the end of 2007 Indochina Land and Viceroy Hotels & Resorts, a subsidiary of Kor Hotel Group's luxury brands, announced that they would team up to build a high-end resort featuring 120 guestrooms and suites and 50 villas, 2 gourmet restaurants, a full-service spa. The resort will be available for sale allowing owners to enjoy full access to the hotel's services and amenities and the option of participating in a rental programme. Purchasing options are in the USD$1-2 million range.
In early-2008, the 2010 official opening of the Sanctuary Resort Ho Tram on the coast of Ba Ria-Vung Tau was announced, incorporating 44 luxury beachfront bungalows operated by a top international resort operator. Located just 135 kilometers east of HCMC the Sanctuary is an elegant ocean front resort community just South of Phuoc Buu town on Ho Tram Beach in Xuyen Moc district approximately 2 hours drive away. New bridges and roads are currently under construction which will reduce the drive time to approximately 1 hr 15 minutes in 2009. The Residences at Sanctuary master plan includes 67 luxury residential villa units in a world-class waterfront residential community as well as a 5 star resort hotel with sports and recreational facilities all within a 168,000 sqm (42 acres) beachfront property. Waterfront properties at Sanctuary include the magnificent Premium Beachfront Villas, which are 480 sqm and directly border the secluded beach starting at $1,500,000 ie USD$3,125/sqm. The Premium Riverfront Villas are 430 sqm and ring the river along the interior island, priced from $650,000 to $720,000 ie USD$1,510-USD$1,675; and the Deluxe Riverfront Villas, at 370 sqm, each have river frontage with easy access to the beach and are priced from $550,000 to $590,000 ie USD$1,485-USD$1,595. Sanctuary's architecture, landscaping, amenities, communications and infrastructure are all of the absolute highest standard of design and construction, all in a beautiful, contemporary setting. Homeowners will have the option of entering their villas into the resort rental program.
Eden Villas in Phan Thiet, almost adjacent to SeaLinks and Mui Ne Domaine, in mid-2008 launched the 15 hectare development of plots of about 500sqm each. The land was selling for about USD$300,000-330,000 or between USD$615-665/sqm.
In mid-2008, Kingdom Hotel Investment (KHI) announced plans to sell luxury houses on Non Nuoc beach in Danang with prices ranging from USD$285,000 to USD$1 million per unit. The investor said their 140 houses will be for successful business people.
In mid-2008, the Dubai headquartered Kingdom Hotel Investments (KHI) group started work on the Raffles Residences in Da Nang. Raffles Residences are luxury homes that will be built for private ownership, created to complement the Raffles Hotels & Resorts brand. The homes will comprise 3 residential buildings offering one, two and three bedroom residences with prices ranging from USD$285,000 - USD$1 million ie prices ranging from USD$4,200 to USD$10,000 per square metre. The Raffles Residences is part of the Raffles Danang Resort and Residences project costing USD$65 million, covering 15 hectares in Non Nuoc Beach, and having a total of 138 units in 3 buildings. The beach front residences will be located at the most sought after site on the 30km stretch of waterfront of the East Sea, with the iconic Marble Mountain as a backdrop. The developers of the project expect the project to attract Vietnamese people to buy the residential apartments and some are on lease for tourists as well as other foreign investors. Raffles Residences will be integrated into the Raffles Danang Resort with 140 hotel suites. The facilities of the Raffles Resort and RafflesAmrita Spa will also be available to residents. The development follows the successful launch of a Raffles Estates in the Seychelles.
In late 2008, the global property developer La Perla International Living announced plans to sell the units at the Bai Tram Hideaway Resort in Phu Yen at USD$3,000-4,500 per square meter, as well as villas and apartments at other projects in Vietnam. The company will then sign agreements with the buyers to rent out their villas to tourists. This was the business model that La Perla International Living would apply to its resort developments in Vietnam.
In late 2008, the Khanh Tam Development Company announced plans for the Vallee de Dalat villas development featuring 7 villas of between 800-1,100sqm at prices of between USD$1.3-1.5 million. The spacious 4 bedroom villas have wrap-around verandahs, maid's quarters and a wine cellar. Each home features a jacuzzi, 3 fireplaces, and 7-8 bathrooms. The finished interiors of hardwood floors of teak or cherry, granite kitchen, and marble bathroom show a refined sense of style.
In early 2009, La Perla International Living was granted an investment certificate to develop a second residential resort project located near historic Hoi An City. La Perla International Living will develop 390 units in the 28he residential resort that stretches 1.2km of beach. La Perla International Living was working on modes for selling the units to Vietnamese and foreign investors as well as using the residences to serve tourists who want to come to stay. "That's the common way of investment in Vietnam." The common formula was to sell villas within the residential resort projects and allow the buyer to lease these villas back to the operator to rent them on to guests. La Perla International Living will soon start construction of 100 villas at Bai Tram Hideaway Resort covering 90 hectares in Song Cau District in Phu Yen. A total of 222 units, including hillside villas would be built at the 2 phase project. Again, La Perla International Living will sell the villas to investors and rent them to tourists wanting to stay at the resort. "We work with the agents that sell our units in Shanghai, Bangkok, Hong Kong and Singapore." The Holland-headquartered group sells the villas at Bai Tram from US$2,250 to US$4,000/sqm. La Perla International Living had projected over US$170 million for luxury seaside resort developments in central Vietnam and on Phu Quoc Island. Bai Tram Hideaway Resort will take some US$80 million with US$40 million of it planned for development of rooms and facilities in the first phase.