>>> (vir.com.vn) Being graced with one of the most beautiful beaches in the world, named “the most worth-living city in Vietnam, Danang has attracted millions of domestic as well as foreign tourists. Danang’s Beachside land is being hunted by real estate investors because of the potential high profit due to the large number of tourists in these areas.
POSITIVE SIGNS FROM DANANG’S REAL ESTATE MARKET
According to data released by the Danang Department of Culture, Sports and Tourism, the number of tourists coming to Danang has been on a continuous increase, from 3.8 million in 2014 to 4.6 million in 2015, surging by 24 per cent. 30 per cent of these visitors are foreign tourists and the city’s total revenue from tourism in 2015 was about VND12.7 trillion ($570 million), up 28.7 per cent on-year.
As the city expects 5 million tourists in 2016, 1.32 million of which being foreign tourists, and a total tourism revenue of VND14 trillion ($630 million), real estate developers and investors are therefore seizing every opportunity to capitalise on this increase.
The city’s government has recently gone on a spree of infrastructure development and encouraged investment into hospitality. In order to meet the increasing demand for high class rooms, the government is prioritising developing infrastructure in the central areas of the city where high class hotels are built.
A COSTLY PLACE IN THE SUN
According to the owner of a small private hotel on Bach Dang street near the Han River, the hotel has a room filling rate of 80-90 per cent all throughout the year. During the summer months and public holidays, it frequently sees a shortage of rooms.
The locations along the riverbanks in the city centre and near the beach thus are considered very attractive by developers. They are also the most suitable places to build high class hotels in Danang as they are close to famous bridges and are within an arm’s reach of all the best Danang has to offer. The price of land in these areas is very high. For instance, on Bach Dang street a square metre fetches about VND150-220 million ($6,700-$9,800).
With the ever-increasing number of tourists visiting and events of an international scale continuously refreshing the city’s cultural and tourism scene, Danang is strengthening its position as the top tourism destination in Vietnam. A constructive policy environment to encourage investment and clear procedures are additional important factors that make the city attractive.
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