The developer of a property project confirmed that, there are 690 condotels and 90 villas in the resort. However, a real estate brokerage firm has ordered 300 products. Of these, 250 condotels will be sold to buyers from South Korea.
The project is located on a ‘5-star boulevard’ with a series of high-end resorts spreading from My Khe to Cua Dai of Da Nang city. Each condotel is sold at VND2 billion.
The investor has committed the annual profit of 8 percent in the first two years and 9 percent for the third and subsequent years, if the project can get occupancy rate of 70 percent and higher.
The general director of a company distributing the project said the company has a high number of clients via its office in South Korea.
“250 is not the last number. However, as clients have had good feedback about the products, I believe the sale will be very satisfactory,” he said.
The director went on to say that South Koreans like products because it is located in an advantageous position with beautiful beaches and is a high-end project. The room rate in the area is about $1,500 per night.
“Chinese travelers use products of different classes, but most of them prefer the resorts at reasonable fees. South Koreans stay in high-end resorts,” he explained.
Along the Da Nang coastline, in the districts of Son Tra and Ngu Hanh Son, restaurants and hotels run by South Koreans have mushroomed in number.
A real estate broker who has been in the sea city for two years, said there are a lot of South Koreans buying houses in Da Nang under Vietnamese names to settle down in the city. “A South Korean community is taking shape. The real estate transactions here are just like the way they appeared in Phu My Hung, airport area and Tan Binh IZ in HCMC,” he commented.
Meanwhile, in early July 2017, the developer of a project in district 2 in HCMC stated that hundreds of South Korean buyers had registered to buy products of the projects.
Under current laws, developers can sell no more than 25-30 percent of total products in one project to foreigners.
According to Sophie Dao, Partner of GBS, investment capital flows from Japan, Singapore, South Korea and Hong Kong are currently the most active sources in Vietnam property market, there are price increases in the market, mainly at large-scale projects invested by reputable investors. Vietnam macroeconomic figures have become more optimistic, like 5-year-fast GDP growth rate, 10-year-low inflation rate, housing interest rates cut, etc.
“Korean clients and enterprises are playing an increasingly significant role in Vietnam property market. According to Ministry of Planning & Investment, in the first half 2019 Korea was the second largest foreign direct investors in Vietnam with 2.73 billion USD inflow, accounting for 14.8% of total registered FDI”, said Sophie Dao.