Photo shows real estate projects surrounding Sealinks Villa Mui Ne in Phan Thiet city, Binh Thuan province. (Photo: VNS) HCM City (VNS/VNA) - Many giant housingreal-estate developers in Ho Chi Minh City are flocking to the hospitalitysegment by developing or distributing new projects in tourism areas.
Kien A Corporation, a real-estate developer with over25 years of operation, is developing Le Meridien Cam Ranh Bay Resort and Spa.
The company told Vietnam News thatits project would be completed by the end of this year. With an area of46,800sq.m, it will have 220 rooms and be developed on Bai Dai (Dai Beach) witha total development value of 450 million USD.
Novaland Group, a giant company being famous forhousing projects in HCM City, has launched many hospitality projects in tourismareas, heating up the market.
For more than a year, the company has been selectingmany places to develop tourism projects. For instance, a project in Can Tho,called Azerai Can Tho, has been put into operation, while many other projectsare under construction like Novahills Mui Ne Resort and Villas.
Others are going to be built in the coming time, suchas NovaWorld complex in Ba Ria-Vung Tau province and Phan Thiet city in BinhThuan province.
With the launch of a series of tourism propertyprojects, Novaland has surprised the market as the group used to develophousing projects in HCM City.
Novaland said the company is currently targetinghospitality projects in its new development period and that more hospitalityprojects would be developed in tourism areas.
Another developer, Phu Long Real Estate Company,recently announced that it would develop a new hospitality site in Khanh Hoa province,starting next month.
Covering an area of 29ha, the project will be locatedon Bai Dai (Dai Beach) with villas as the main product.
Following this project, Phu Long said it would developa 100ha-hospitality project on Phu Quoc island in the southern province of KienGiang in the third quarter of this year.
These will be the first two projects that Phu Long hasdeveloped in the tourism sector. Previously, the company focused on housingprojects, including condos, villas and houses.
Cenland Group is also charting its own way tojoin the property sector. Speaking with Vietnam News, arepresentative of Cenland Group said that it had become the sole distributor ofCrystal Holidays’ Cam Ranh Riviera project, which will be developed by CrystalBay.
The project, which is about a 20-minute drive from CamRanh International Airport, contains 544 condotels in a 25-storey buildingdeveloped on an area of over 99,000sq.m. The project will be officiallymarketed next month.
Speaking about the trend of investing in hospitalityprojects outside HCM City, the HCM City Real Estate Association said the city’sreal-estate developers faced difficulties due to a slowdown in administrativeprocedures.
Nguyen Van Dat, chairman of Phat Dat Real EstateJoint-Stock company, agreed with the association’s assessment, saying that hiscompany is targeting tourism property projects in Quang Nam province.
Dat was quoted in Vietnam Investment Review as sayingdevelopers are shifting their investments to a new segment because real estatefaced challenges in HCM City.
An expert who wanted to remain anonymous said thattourism project development was an opportunity for real-estate developers tothrive in a challenging time.
However, developers said tourism property projects wasjust a temporary strategy during the current difficult period. Housing projectswill remain the main business, they said.
Novaland, Phat Dat and other companies said they wouldcontinue to develop housing as their main segment and would return to do so ata later date.-VNS/VNA
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