Resort real estate: “Vaccine passport” needed to attract major investors

Illustrative image (Source: VNA)

Hanoi (VNA) - In the remaining months of 2021, once the COVID-19 pandemic is brought under control, Vietnam will be one of the locations attractive to many investors to resort real estate.

Although COVID-19 has dealt a hard blow to the market, particularly coastal real estate tourism, many experts believe that in the remaining months of this year, once Vietnam successfully curbs the spread of the pandemic, the country will be among the markets that attract many major foreign investors.

However, to foster the market in the post-pandemic period, due attention must be paid to the “vaccine passport” policy.

Major investors seek huge opportunities

One of the most popular types of real estate in the past year is resorts, especially in coastal localities.

Experts in the field said that even though real estate prices surge and many segments witness recovery, demand for resort real estate and coastal tourism in particular remains tepid.

Do Quy Duy, Business Manager of Hai Phat real estate, stated that the impacts of COVID-19 on the market is clear. Meanwhile, disbursement for small-scale investors, whose registered capital is less than 5 billion VND (217,550 USD), was proactive. Credit growth of banks are stable despite the ravages of the pandemic in many places.

Regarding resort real estate, Duy said that the market is a magnet to foreign investors. However, over the past two years, a large number of travel firms have borne the brunt of COVID-19.

Many hotels, resorts, and condotels are put for sale with prices of only 20-25 percent compared to the market value.

In the current context, in the upcoming six months or one year, the market will remain bogged in difficulties because Vietnamese investors prioritise certainty, Duy underlined.

Meanwhile, Ngo Van, Marketing Director of Danh Khoi Group, said that Vietnam is yet to turn its eye to a group of major foreign investors waiting for the easing of restrictions to access Vietnam’s resort real estate market.

He added that countries and territories in the region usually have such a group of investors who are keen on major and lucrative property projects, like in Hong Kong, Singapore and Thailand. Those are places where investors are striving to find property holding potential of growth in 3-5 years.

Once the pandemic is put under control, real estate serving coastal tourism will be an attractive segment for all customers and investors. When that time comes, Vietnam will be one of the Southeast Asian markets which stand ready to welcome investors in major projects, Van underlined.

He believed that in the third quarter of this year, once social distancing measures are loosened, the major investors will arrive in Vietnam and serve as a driving force for the property market, notably resort real estate.

As for domestic investors, Van said that in tandem with the common orbit of the market, disbursement in real estate is set to be on the rise from Q3 2021, as the Government has sped up the inoculation campaign. At that time, investors will pour money into real estate products with reasonable prices and profit possibility.

Illustrative image (Photo: VNA)

Vaccine passport – opportunity to attract investment

Echoing the view that once Vietnam is able to contain the spread of COVID-19, real estate for resort tourism will recover, Director of Tuan 123 real estate firm Le Nguyen Hong Phuong added that no matter how positive the sign is, whether the sector can return to what it was before COVID-19 will also depend on Vietnam’s control measures and entry policies.

She said attention should be paid to the important policy of “vaccine passport”, noting that if this is applied, resort real estate in Vietnam will prosper.

Another factor is the attractiveness of industrial real estate. Hong said if the market can draw major investors to Vietnam, demand for housing and resort tourism will increase.

Nguyen Quoc Anh, Deputy General Director of Batdongsan.com.vn, said priority should be given to tourism development. He cited the example of Thailand, which sets sights to welcome international tourists to Phuket, the country’s renown resort island.

Tourism may help ease economic burden for local people who were victimised by the pandemic in the past year. Subsequently, the “vaccine passport” is highly needed, he affirmed./.