Developers eye second-home market

The Hoa Anh Dao Tourist Joint-Stock Company has begun construction on its Oceanami Resort&Luxury Home Project which contains 180 villas designated for the second-home market as well as a five-star hotel and other facilities.

Central Da Nang City, where a large number of high-end villas, houses and apartments will be put up for sale during the next few years aimed at buyers in the second-home market.

Marc Townsend, managing director for real estate services firm CBRE, said a large number of high-end villas, houses and apartments would enter the second-home market over the next several years.

He said the supply pipeline of around 11,000 villas and 10,000 condos in the third quarter would represent a five and threefold increase, respectively, compared with current figures.

A majority of the properties are on the country’s central coast.

The second-home market is still in its infancy, he said, adding that it had just resumed in the past few years but had drawn the growing attention of local and international investors.

He noted that the second-home market had grown more active in recent years because of interest shown by international resort operators and the higher rate of construction activity.

Several second-home projects have been up and running, including the Nam Hai in Hoi An that was launched four years ago. Nearly all of its 40 villas priced from $1.5 million have been sold.

Buyers of the villas were initially foreigners and fund companies, but now the majority are local residents.

"While the majority of buyers for this type of property tend to be local people from Ha Noi, representing 40 per cent of overall buyers, locals from HCM City are now catching up with them with their share of market transactions now standing at 30 per cent," he said.

The second-home is typically located in a beachfront resort or in the mountains in a managed community, and can be leased for additional income, or used for future retirement of the owners.