Go Ahead, Buy that Second Home

      CB Richard Ellis (CBRE), a property consultant that is very active in Vietnam says that according to its market research, there are a number of people that live in Vietnam's biggest cities that are, in spite of this economic downturn, doing so well that they are considering buying a second home.
Property specialists say that this could very well be the beginning of a new investment trend that follows hints that the economy has hit bottom and will soon begin to rise. In fact, the Vietnam securities market did rise in the first half of 2009 and there was a sharp rise in the number of new apartments that were sold in Hanoi and Ho Chi Minh City in response to the large number of newly built apartments that came onto the market during this time. The inflation rate has subsided, the State Bank of Vietnam (SBV) has attempted to keep the number of housing loans at a low level and the government's bailout package appears to be working.
Unlike apartments which are purchased to become a family's primary residence, these second homes being referred to here are often times within a hotel, resort or golf course project along the coast or in the highlands and they are definitely not a family's primary residence. For a set mandatory fee, project managers take care of maintenance, management and rent collection. These are places where the wealthy can go for the weekend or to relax while on vacation, and owners can obtain an income if they are rented out.
While the concept and financial ability to enjoy a second home is nothing new outside of Vietnam, in Vietnam this is something brand new. When construction of the 5,000 plus new villas and apartment buildings is completed in the next few years it is hoped that many individuals will have the financial ability and desire to purchase one of these properties as their second home.
One example is the Long Chau Villas and Residences project of the T & H Ha Long Joint Stock Company. The company is building 700 villas on Tuan Chau Island in Ha Long on 338 ha. The US$330 million project is to include an 18-hole golf course, a boat dock and a villa complex. Fifty-two luxury floating villas are to be completed by 2011.
Two tourism-entertainment-relaxation complexes that are to be built in Hai Phong by the Vinaconex ITC Joint Stock Company, the Song Gia Resort Complex and Cat Ba Resort Community, will be another source of second homes in a few years time.
Real estate specialists see many opportunities for people to buy a second home in Vietnam. They believe that Southeast Asia will become a magnet for visitors in the years to come and many of these people would rather stay in a separate, cozy villa than a fancy hotel or resort.