Shaping a new trend in housing investment channels: The "rise" of luxury apartments with permanent ownership by the sea

(NLDO) - When emphasizing balanced living, buyers prefer quality living spaces instead of Condotels, which are illiquid, inefficient, and have complicated legal procedures.

Meanwhile, the luxury coastal apartment segment in big cities still records positive signals, although prices have increased sharply over the past 5 years, peaking at 500 million to more than 1 billion VND/m².

"Rare treasure" from coastal projects

In many countries, areas associated with coastal and island tourism have seen more positive real estate market developments than the general level. According to the Guardian, the number of rental houses in coastal cities in England and Wales increased by 56% from 2019 to 2022, while other areas only reached 15%. The average revenue in the Tendring area reached about 17,817 USD (~14,000 GBP), with an occupancy rate of about 38% and an average rental price of 160 USD/night.

In the US, the coastal city of Miami still maintains its enduring appeal. According to Redfin, by the end of 2022, when the average home price across the US was stagnant, home prices in Miami increased sharply by 19.7% over the same period.

By the end of 2024, home prices in Miami had reached $650,000, up 12.1% in one year and setting a record of 133 consecutive months of growth – a clear testament to the growth momentum of luxury coastal real estate.

In Vietnam, coastal real estate is also recording similar developments. According to the Vietnam National Administration of Tourism, in 2024, the number of international visitors to Vietnam will reach more than 17 million, an increase of 47% compared to 2023. The average room occupancy rate at 4-5 star hotels in major coastal cities such as Ha Long, Da Nang , Nha Trang, Phu Quoc reaches 70-75% during the peak season, according to Savills Vietnam. The rental price of 5-star hotels in coastal cities recorded an increase of 15-20% in a year, showing that the demand for coastal accommodation is booming strongly.

Particularly in Dong Hoi - a potential coastal city likened to "Vietnam's Miami" is making impressive changes. According to the Quang Binh Department of Tourism, in 2024, Dong Hoi will welcome more than 3.2 million tourists, an increase of 38% compared to 2023. The average room occupancy rate at 4-5 star hotels in the central area of ​​Dong Hoi and Nhat Le beach reached over 75%, the highest ever. In addition, according to records from Batdongsan.com.vn, land prices on coastal routes such as Truong Phap and Vo Nguyen Giap have increased by 15% in just one year.

The rise of luxury apartments with long-term ownership

According to Savills Vietnam, the supply of long-term coastal apartments is becoming increasingly scarce. Of the total number of newly launched projects in coastal cities such as Da Nang, Nha Trang, Phu Quoc, Dong Hoi, only about 8-10% of products are granted long-term pink books. The majority of the remaining products are products with a term of 50-70 years.

In Da Nang, according to CBRE Vietnam, in 2024, the average price of long-term ownership coastal apartments will reach VND85-100 million/m2, about 25-30% higher than apartments in the same location but with only limited ownership. Some prominent projects such as The Filmore Da Nang or Premier Sky Residences have recorded an absorption rate of over 90% in the first sales rounds.

In Dong Hoi, this trend has also quickly formed and developed. The highlight is the Regal Residence luxury coastal apartment complex with 4 towers owning pink books.

Similarly, in Nha Trang, according to DKRA Vietnam, prices of long-term ownership coastal apartments have increased by an average of 12-15% per year in the period 2021-2024, double the growth rate of limited ownership products. A long-term ownership coastal apartment project in Bai Duong opened for sale in the first quarter of 2024 recorded a sales rate of 95% after only 2 months.

In Phu Quoc, since officially becoming the first island city in Vietnam, the supply of long-term ownership apartments has been extremely limited. According to Colliers Vietnam, in 2024, only less than 5% of new products on the market in Phu Quoc will be in the form of long-term ownership. These products record prices 20-35% higher than apartments with limited ownership and are almost completely transacted after only a few months of announcement.

The scarcity of supply, combined with the preference for inherited assets and the increasing demand for legal transparency, is strongly promoting the trend of choosing luxury coastal apartments with long-term ownership. In particular, in the context of luxury real estate being considered a safe "value shelter", luxury coastal apartments are a symbol of an upper-class lifestyle and a sustainable long-term financial investment channel.

Source: https://nld.com.vn/dinh-hinh-xu-the-moi-kenh-dau-tu-nha-o-su-len-ngoi-cua-can-ho-hang-sang-so-huu-lau-dai-ben-bien-19625042819583301.htm