Vietnam Real Estate News

Hanoi’s Thirst For Second Homes   2010-01-06 - Vietnam Investment Review

   Developers are looking to cash in on Hanoians’ growing demand for second homes. In recent years developers have been promoting holiday home projects near the capital such as Flamingo Dai Lai Resort in Vinh Phuc province and Haiphong’s Cai Gia-Cat Ba tourism township.
Grand Arena Hill will cater to Hanoians’ growing demand for second homes However, most of these projects sell land for buyers to build their own homes, which are only used periodically during the year. Now, more professionally developed projects such as the Hyatt Regency and Ocean Villas in Danang have caught Hanoian’s attention since they were launched last year.

CB Richard Ellis executive director Richard Leech said: “Hanoians are seeking a holiday destinations not far from their homes to escape the oppressive and polluted city in weekends. However, there are not many holiday developments to cater them.”

He said most projects in the north were small-scale tourism developments and not operated professionally. Tran Minh Hoang, chairman of Gia Tue Investment Company, said it was not easy to find suitable northern locations for building holiday homes.

“The northern region has no seaside resort cities like Danang and Nha Trang. Haiphong’s sea and beaches are not beautiful,” said Hoang. That was why developers had been cashing in on mountainous areas such as Sapa and Tam Dao, said Hoang. However, Sapa was far from Hanoi, while driving to Tam Dao was not easy.

“Ba Vi district in Hanoi is a proper destination for weekend homes as it has beautiful landscapes and historical interest,” said Hoang.

A fortnight ago, Gia Tue Investment announced it would invest $20 million to build the Grand Arena Hill Hotel and Villas project in Ba Vi, 60 kilometres from Hanoi. The project, which leans into the Ba Vi mountain and looks out to the Da River, comprises a 100-room four-star hotel and 40 luxury pool villas with floor spaces ranging from 350-550 square metres.

Construction is expected to finish within the next three years. Hoang said the project would sell villas to individual buyers under the long-term lease contracts with prices of no less than $1,000 per square metre.

Grand Arena Hill will replicate the successful business approach of Hyatt Regency in Danang by selecting Swiss-Belhotel International to manage the resort, being the first second home developer in the north to adopt such a business model.

“According to our social survey, about 75 per cent of more than 40-year-old Hanoians are looking to purchase a second home not far from Hanoi,” said Hoang. “However, they want to know what benefits they will get from buying a second home.”

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