Plenty of potential for development of the marine real estate market

	The remarkable points of the real estate market
	The real estate market remains an attractive investment channel
	It is necessary to have a specific solution to recover the real estate market

Great attractions from Vietnamese marine real estate. Photo S.T

Great attraction

The booming tourism industry, rapidly growing middle class and rich, and the strong development of modern transport infrastructure are the three basic reasons that marine real estate is an increasingly diversified and attractive segment in the real estate market. Marine real estate can be a second home that serves the purpose of improving the quality of life for those well-off, and it will be a permanent wealth accumulation or a travel service business.

According to Mr. Do Thien Anh Tuan, Fulbright University Vietnam, Vietnam currently has 19 marine economic zones with scales of 47 - 48% of the country's GDP. The GDP of the pure marine economy accounts for 20-22% of the country's GDP. Contribution of economic sectors taking place at sea accounts for 98% of the marine economy. They are mainly from exploiting oil and gas, seafood, marine, seaport services, and tourism. Not to mention, urbanization in Vietnam is still slow, while urbanization should be the engine of growth over the next decade.

“The basis for our confidence in growth is the rapidly growing middle class. Vietnam's middle class is capable of catching up with newly industrialized countries. Specifically, Vietnam has the second fastest growing super-rich in the world in the past decade,” Mr. Tuan said.

Regarding the development of marine cities in Vietnam compared to other countries with similar advantages, Mr. Mauro Gasparotti, director of Savills Hotel Asia-Pacific, said compared with Thailand – a country in the same region with many similarities of destinations like Phuket, Pattaya.There are many strong points to do better such as special heritage, long coastline, delicious food. Or about condotels, according to Mr. Mauro Gasparotti, there is potential and opportunities everywhere in Viet Nam.

In 2020, the Covid-19 pandemic has caused the income of customers and tourism to decline, thereby it is directly affecting resort real estate in particular and marine real estate in particular. The resort real estate market has declined from 2019 after a peak period from 2016 to 2018, reducing both new supply and consumption. The sharp increase in prices in the past is also a significant challenge.

However, according to experts, the above difficulty is only temporary, in the future, marine real estate will soon recover to serve the tourism industry.

Solving the problem of effective investment

Mr. Pham Lam, General Director of Vietnam DKRA company, said the middle class of Vietnam is forecasted that by 2025could account for 25% of the population, about 25 million people, and more of these people need to own a second house for relaxation and wealth accumulation. This demand is encouraged by the traffic infrastructure of expressways and airways spreading, narrowing the distance between traditional cities and coastal cities.

Forecasting new supply in the next two to three years, Mr. Lam said that projects could launch thousands of beach front villas per year. Other types of products likes hophouses and townhouses area new type of product that is increasingly popular as the scale of urban coastal residential projects is expanding. Part of the reason is the legal long-term ownership.The other part is the clear planning layout and commercial potential. With projects being planned and prepared, the new supply could reach thousands of beach front villas per year.

However, in order to develop urbanization in general and marine urban in particular, experts say that policy should include the urbanization strategy, avoiding resource scattering; perfecting policies on planning, land, property ownership, legal; deploying quickly on the North-South expressway system together with the expressway connecting key economic regions.

In addition, it is necessary to have methodical, complete, functional, synchronous, and connected urban planning. In particular, the protection of the environment and cultural/historical heritages as well as natural heritage is an issue that needs special attention.

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Regarding legal issues, the delegates said that it is necessary to soon complete regulations for new types of products. Promulgating clear detailed regulations on functions, rights and responsibilities for related entities from investors, managers to buyers.