Research from property consultants CB Richard Ellis shows that an astonishing 70% of beachfront villas with price tags of up to $1 million are bought before they are completed, a scenario that has not been seen in world property markets for some time.
More than 8,200 beachfront villas and apartments are due to be built over the next two to three years with the majority being bought by property investors. CBRE general director for the region, Marc Townsend, said only a small number are being bought for personal use.
The majority of the new beachfront properties, about 5,100 villas, are being built on Vietnam's southern beaches, including in Vung Tau and on Con Dao Island. Vietnam's China Beach, once a wartime playground for US soldiers, could become a tourism hotspot to rival Bali or Phuket, according to some industry players, as it is relatively underdeveloped.
Foreign and local investors have staked their claims, walling off areas of the beach in preparation for development, even though some sites remain little more than sand-blown scrub beside the sea. Some are talking in terms of the area becoming the new Bali.
Nguyen Duc Quynth from the five star Furama Resort Danang said the development is expanding because of demand. 'We wanted to start at the beginning of the year but the real estate market was not there. Now, I think the market's already back,' he said.
Tourism and investment officials in Danang said that several other developments are under way along the beach, despite the global economic and financial crisis. Now they want a shortage of direct international flights to the area to be addressed to encourage more visitors.
Vietnam's Indochina Land began selling condominiums and villas at its Hyatt Regency Danang Residences on the beach in April and although major construction has not yet begun more than 60% of units have been sold.
Golf projects and a Casino-hotel project are also planned for the area and a charter service from Japan is expected to begin by the end of the year.
