Danang Resort Residential Heats Up

Posted: 06 Aug 2009 | 11:17 am

Roll back the clock a few years ago and Danang's China Beach was on the radar of virtually all of the regions hotel chains and institutional property developers. After a rocky road back of a major currency devaluation, hyper-inflation and the slow down of its economy Vietnam is again buzzing with activity in its residential sector.

The current success of Indochina Land's Hyatt Regency mixed use development where resort apartments have not sold just under 100 units in a short period after launch. Surprising many is the fact that most buyers have been Vietnamese nationals who tapped into unit offerings of 75 square meters with sales prices averaging US$2000-2500 dollars per square meter. The ability for locals to finance the units is one of the key demand drivers in what has been a very efficient take up rate.

Other resort destination such as Nga Trang, Phu Quoc and Phan Thiet represent just of few of many locations that hotel managed property developers are chasing deals in. While the Hyatt has been a great success story, there remains question's about the depth of the domestic investment market for secondary purchases. As for now a number of similar projects are spurring a quick entry to the market which currently is rising on favorable sentiment.

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