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Da Nang condotel market: Now is the time to buy

Released at: 15:52, 11/10/2016

Da Nang condotel market: Now is the time to buy

Photo: Ariyana Danang

Large-scale condotel projects booming in central city, including Ariyana Beach Resort & Suites Danang.

by Linh San

Central Da Nang city has recently seen a boom in the number of condotels (a combination of apartments and hotels and also known as condo hotels), which offers more options for buyers.

Upcoming large-scale projects include Ariyana Beach Resort & Suites Danang, Soleil Da Nang, Coco Bay, Da Phuoc, Han Riverside, Central Coast, Vinpearl Han River, and Ocean Suites & Estates. A large future supply of apartments and coastal villas is expected.

Surveys have shown that more than 80 per cent of purchasers are from Hanoi, attracted by a wide a variety of products, complete infrastructure, bright tourism prospects and sales policies, and the image of a young, dynamic and green city.

Mr. Marc Townsend, Managing Director of CBRE, predicted that the condotel sector in Da Nang will grow more strongly and also in Vietnam as a whole in the years ahead.

The main reasons are sustainable profitability potential and reasonable prices of this type of property, as well as the controlled inflation rate in Vietnam. He added that this real estate model will become more attractive to investors both home and abroad.

The latest report from CBRE showed that condotels were the most vibrant segment in the market, with a significant number of new launches and sales transactions in the third quarter of this year.

More than 2,800 units were added to the market, increasing total supply to 5,751 units.

New projects coming online this quarter include Hoa Binh Green, Central Coast, Coco Skyline Resort, and Ariyana Beach Resort & Suites Danang (North block).

High-end properties dominate the market, with 67 per cent of total supply. The remainder is in the mid-end segment. As at the end of the third quarter, 70 per cent of condotel projects sold were in the high-end segment compared to 30 per cent in mid-end developments.

“Buyers now have more choice and consequently are taking more time to make a purchasing decision,” Mr. Townsend said. “Along with the positive growth in Da Nang’s hospitality market, the condotel market is expected to maintain sustainable improvement as its attraction remains strong.”

Among those condotel projects being developed in Da Nang, the Ariyana Beach Resort & Suites Danang has sparked much interest among buyers.

Ariyana Beach Resort & Suites Danang has a modern design with all condominiums featuring ocean views. In addition to its prime location near the center of Da Nang it’s the only luxury condotel project in Vietnam nestled on a beach.

All condominiums have ample space for residents and guests to experience the exceptional and incredible beauty of the coastline and relax and enjoy life.

Architect Andrew Frost applied “feng shui” principles in the planning and building of the three towers at Ariyana, with many condominiums having both northeast and southeast views. Under feng shui principles, the southeast represents the wind, and because the wind comes from far away it also signifies success in business for the condominium’s owner. The northeast, meanwhile, represents the changing of night and day and yin and yang - the start of new circumstances that will help owners move forward.

All three towers are designed in a manner that can be imagined as being located on the water, with a landscape overlooking the ocean. The staircase from the pool to the lounge room gives the impression of walking on the sea.

Ariyana Beach Resort & Suites Danang is located within the five-star Furama Resort Danang, which is recognized as one of the most luxurious on Vietnam’s central coast and in Asia by international tourism agencies. All condominiums have inherited the exquisite facilities of Furama Resort and Furama Villas, including swimming pools, a sports complex, luxurious spa services, a kids club, and a helipad. Furama Resort Danang is also well known for its cuisine, featuring dishes from Europe, Asia and Vietnam.

Ariyana has an internal road network connecting it with the Furama Resort Danang and the Ariyana Danang Convention and Exhibition Center, which will welcome the 21 Heads of State attending the APEC 2017 meeting. The Center also hosts cultural events, concerts and international exhibitions.

It is also located just ten minutes from two of the largest golf courses on the central coast: Danang Golf Club and Montgomerie Links, and has easy access to Ba Na Hills, Hoi An ancient town, and other local scenic spots. A shuttle bus is available every day for those who wish to visit Hoi An or Da Nang’s city center.

One of the main reasons Ariyana has attracted investors is the prestige of its developer. The project is being developed by the Ariyana JSC, an affiliate of Sovico Holdings. Sovico Holdings is well-known throughout Vietnam for a range of projects and companies, including HDBank, Vietjet Air, Phu Long Real Estate Company, An Lam Ninh Van Bay Resort in Nha Trang, Evason Ana Mandara Resort in Nha Trang, Furama Resort Danang, Furama Villas Danang, the Ariyana Danang Convention and Exhibition Center, Holiday Inn Airport Plaza in Ho Chi Minh City, Hoang Anh Dat Xanh Da Lat Resort in Da Lat, and Saigon Phu Quoc Resort & Spa on Phu Quoc Island.

Guaranteed yield has become the main sale and marketing strategy used to attract buyers. Offers ranging from 10 per cent of unit value per year over ten years have also attracted investors. Guaranteed yield programs assure a certain return on investments, which is what most investors are now looking for.

Mr. Nguyen Duc Quynh, PR and Communications Director at the Ariyana Joint Stock Company, told VET that: “As it is still in its early stages of development, Vietnam will certainly be a bright spot in the tourism industry. Because tourism is developing rapidly, and the perception of living is changing among Vietnamese people, they are now more willing to invest in a ‘second home’, balancing their work and relaxation and investing in their future too.”

Condotel projects, Mr. Quynh added, actively and positively contribute to a stable society, drawing money from people’s “pockets” to the market. “Condotel projects, when they become hotels or resorts, generate not only revenue from holidaymakers but also create more jobs,” he said. “Furthermore, these projects can bring profits to individual investors when they take up a leasing agreement with a hotel management company, which also can ease social issues.”

The condotel market expects to welcome more than 1,000 new units in the coming quarters, according to CBRE.

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