What is second-home?

The definition of “second home” can be understood as real estate which designed in the combination pattern of relaxation and profitable investment. Nowadays, people who experienced a stable career and secured financial ability have a growing tendency to own more than one property for leisure purpose with their beloved ones. Thus, owning one or more apartments or resort villas is gradually becoming a trend. It is considered a place for vacations with friends and family, at the same time, utilize the profit by leasing while the property is not in use which helps disperse risks and diversify investment portfolio. Second-home is not only stereotypes in coastal resort real estate but also can be located in large cities, suitable for owners who often go on business trip.

The explosive growth of the tourism industry and the affection of rapid urbanization on the city space are the foundation for the growing trend of second-home ownership in Vietnam. According to Telegraph, Vietnam is one of the top 20 countries with remarkable growth in second-home market during recent years.

BENEFITS OF SECOND HOME OWNERSHIP

High quality lifestyle

Most investors choose to invest in second-home to go vacation on holidays with their beloved ones. Condotels for this purpose usually located near beach, river, lake areas with the view towards waterside or spacious landscape. Investors also prefer properties near attractions, restaurants, entertainment and leisure services.

Otherwise, a large percentage of investors choose to own second-home to enjoy life after retirement. In this case, condotels are often rented long-term in advance to contribute financial accumulation for the forward period.

Sustainable investment

“1 out of 3 people reported that the rental of second-home is profitable. The survey in 5 major markets showed that the average profit rate was 6.4%/year. The average resort price is USD $291.000, the average rental price is USD $21.000”, Savills announced in their 2018 survey.

Second-home owners can either look for renters themselves or through a lot of real estate agency platforms or delegate their properties for the professional operating and leasing units.

This type of real estate is considered as a passive income with stable profitability in long term which contributes to improve the quality of life for owners in the near future.

What are the criteria to search for a “second home”?

Location

The two largest centers of Vietnam – Hanoi and Ho Chi Minh City are facing the situation of little green space, pressure from work and living expenses. That is the reason why lots of families tend to look for properties on the hill with sea-view and green landscape.

Mr. Neil Macgregor – General Director of Savills Vietnam supposed that the second-home market is becoming more and more attractive. Especially when the infrastructure is developed and located in a favorable position, with many direct flights connecting famous vacation destinations with foreign countries.

Also, the location highly affects the increasing profitability in the future. As a result, the trend of owning condotels and villas with convenient route, traffic and near airport is rising.

Large number of tourists

In fact, developed seaside resort markets such as Quang Nam, Da Nang, Nha Trang, Quy Nhon especially attract investors because second home in this market is extremely suitable for sub-leasing due to the high number of tourists every year.

In recent years, Quang Nam has been one of the most potential tourism destinations in Vietnam. According to the data reported by Department of Culture, Sports and Tourism of Quang Nam, the total number of tourists stays in the province in June 2019 was estimated at over 782 thousand people, 19% higher compared to the same period of 2018; in which over 367 thousand international visitors, 31% higher over the same period in 2018; over 415 thousand domestic visitors, 11% higher over the same period in 2018. Revenue from sightseeing and tourist accommodation in June 2019 was estimated at VND 460 billion, increased by 16% over the same period last year. Social income from tourism was estimated at VND 1,081 billion.

Especially, Hoi An is the most attractive city in Quang Nam. In 2019, Quang Nam organized a number of activities to commemorate the 20th anniversary of Hoi An Ancient Town and My Son Sanctuary, which are recognized by UNESCO as World Heritage Sites, ten years since Cu Lao Cham – Hoi An was recognized as World Biosphere Reserve. These are essential events expected to attract a huge number of tourists to Quang Nam.

Legality

Before owning a property, legality must be always the top priority for any investors. Most of the resort properties’ land is commercial, according to the land law, which is granted 50-year possession, not permanent like residential land, and it must be renewed when the land use term expires. Therefore, customers looking to buy resort products should pay attention to legal issues related to land to consider the investment price. At the same time, customers should require the projects’ developers to support in extending the land use after the expiry of the 50-year term.

Prestigious developer

Choosing a prestigious project developer to buy a property is something need to be carefully considered. Developer’s reputation can be assessed based on the following criteria:

• Enterprises which have been the developer of various projects, those projects’ quality are highly evaluated in the market.
• Developers who cooperate with a lot of prestigious real estate distribution units, embrace professional working manner, always provide project related information to customers in a complete, open, and transparent way.
• Prestigious developers must ensure the legality of the project to the buyers. Always offer a full report within the legal framework when customers require such documents related to the investment.

In case customers desire to select projects under new developers, they can base on the names of the design, construction, management and operating units.

In case customers desire to select projects under new developers, they can base on the names of the design, construction, management and operating units.

If green space, sea-view, ventilated and close to nature landscape are terms that often trigger people to think of second-home, Malibu Hoi An – a project of Bamboo Capital Group is a prime example of an ideal 5-star second home. The project includes 30 private resort villas operated in second home model and offers full of high-quality amenities.

Malibu Hoi An has just been honored in two titles of “Beachfront Luxury Resort Villa Development” and “Best Luxury Condotel Architectural” in South East Asia at the privileged Dot Property Awards 2019.

Malibu Hoi An

Besides, BCG is also implementing other attractive and differential projects to meet the needs of customers.