Coastal Villas attract domestic and foreign investment

The year 2015 witnessed spectacular development in the real estate market, including the impressive growth of the coastal resort segment, which became an attractive investment “sought after” in the market.

In recent years, Villas Resort has become attractive to customers not only in Vietnam, but also in Hong Kong, Singapore, Korea and Japan as well. As can be seen from the general trend, Coastal Villas are attracting investors as the most attractive investment for not only the present, but also the future.

According to experts, many investors have changed the structure of the resort property so that it’s no longer merely an investment product. To be more specific, the owner is more flexible in providing profitable long-term leases and preferential interest rates, which are the prerequisite conditions that make investors interested in this type of investment.

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“A coastal resort property is different from traditional hotel. When the investors purchase resort property such as a villa, an apartment or a townhouse, they can use it for personal interest or leasing the property at will. It can not only bring pleasure to the investors, but also a good profit from the initial investment,” a specialist states.

However, according to the specialists, in order to achieve optimal efficiency when looking for a villa, investors should consider not only the rate of return, but also project history such as the owner’s brand name and managing corporation’s reputation.

Currently, among the ideal projects for coastal villa investment throughout the country, it can be seen that Mövenpick Cam Ranh Resort has stood out as a bright spot to investors for high profitability, reputation of the owner – Eurowindow and the management team by worldwide famous corporations in managing 5-star hotels and resorts - Mövenpick Hotels & Resorts Group of Switzerland.

In the near future, 121 villas and 96 apartments under the brand of Mövenpick Resort will be launched, allowing investors to sublease a part of project with special offers. The investors can use or transfer under the brand name Mövenpick Villas, whose value is guaranteed by 5-star standard of Movenpick Group in term of design, construction, maintenance and management. Not only are all 121 Mövenpick villas facing the beach, but all the living rooms and bedrooms of the villas are designed to face the sea as well. This is an extremely important criterion which is crucial in enhancing the value of coastal villas. With this “unique” design, the Movenpick Villas are the market’s leading in luxury segment for coastal resort in Vietnam’s market.

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Nguyen Duc Minh, a customer who has invested in Mövenpick Villas, stated: "Purchasing a villa is not only a place to take my family to for holiday or weekend, but my parents can stay there during the winter or summer time in the north. I can stay there up to 180 days each year and lease the property for some extra profit. As an investor, I feel secure when investing in this second house with the policy of the owner and the reputation of the management unit.”

In a recent seminar, an expert in investment and trading properties Robert Sterling, of the Netherlands, said that in the near future the price of the villa is definitely going to increase as the demand is increasing, especially as the new Residential Law allows foreigners to own real estate in Vietnam while the number of coastal villas is limited.

According to the analysis of specialists, the price of Mövenpick Villas is at an early stage of the bull market. Therefore, this is a safe investment opportunity with high profitability. The owner commits to share 85% rental profit and no less than 10% per annum over 10 years. In addition, Mövenpick Villas project is the first and only resort property in Vietnam to implement policies of bank guarantee, which commits 9% minimum profit per annum over 10 years.

(Vietnam News)