Real estate developers now tend to invest their money in resort projects, even when they are not receiving any investment incentives from local authorities. They have realized the high demand from wealthy people which in turn will bring them fat profits.

Some days ago, a real estate corporation organized a tour to a resort in the northern province of Hoa Binh. The luxury 50-seat sightseeing coach was full of people, many of whom were young and rich. In addition, there were many other people who drove their own cars out to Hoa Binh.

Right after the sightseeing tour, 10 contracts to purchase the villas of the project were signed. When asked about the purpose of the purchase, most of the buyers said that they wanted to have somewhere to stay on weekends.

In a talk with Thoi Bao Kinh Te Vietnam, Le Tuan Anh, General Director of Thang Long Xanh, the investor of Zen Resort in Ba Vi district in the suburb of Hanoi, said he really did not have good knowledge about the long term potentials of resort real estate projects in the suburbs. However, after deciding to spend 120 billion dong to develop the project with an aim to “explore the resort real estate market in the north”, he has realized that the demand is very high. The director said that the interest in eco- real estate of “big guys” in Hanoi is beyond his expectations.

“Ten villas were sold within a day when the villas were put on sale in the first phase in early March. Meanwhile, we receive more and more calls every day from the people who ask about when more villas will be put on sale in the second phase,” Tuan Anh said.

Several years ago, there were only several sporadic eco-real estate projects in Luong Son district in Hoa Binh province, or Son Tay area in Ba Vi District of Hanoi. At that time, these were just mini resorts which were leased to a limited number of rich families who went there on the weekends on holiday.

More and more resort real estate projects have arisen in the places with beautiful landscapes and fresh atmospheres, ideal for relaxation and entertainment. The places are mostly located in areas in the west of Hanoi and communes of Hoa Binh province, bordering Hanoi.

Besides the projects which are under implementation, including the eco villa complex Top Hills in Luong Son district, The Queen Villas project in Ba Vi, Tan Vien Resort, the high grade residential quarter in Luong Son developed by Petrowaco, a lot of other projects are expected to kick off in a few months.

In early March, Archi Reeco Hoa Binh decided to invest 800 billion dong in a project which aims to turn the 66 hectare area in Luong Son district in Hoa Binh into a high grade resort by 2017.

Prior to that, Thang Long Xanh introduced to investors Zen Resort project capitalized at 120 billion dong.

Real estate developers are continuing to pour their money into resort projects, even though they cannot enjoy any investment incentives from local authorities. Especially, in order to make the projects more valuable, the investors have to spend their own money to build roads and infrastructure for electricity and water supply.

Chair of Hoa Binh provincial people’s committee Bui Van Tinh said in Hoa Binh alone, there are 19 eco real estate projects, mostly located in the areas bordering Hanoi, and the areas along the Hanoi-Hoa Binh highway.

“People may think that investors are rushing to invest in Hoa Binh because we offer attractive incentives. However, I can say that no incentive has been offered. Investing is simply the choice of the investors,” he said.

Meanwhile, explaining the investment decision, a manager of Sudito, the investor of Country House project in Ba Vi, said that the infrastructure conditions have developed well in the west of Hanoi. Besides, he said, “living in the suburbs, working in the inner city” is the new trend of many rich young people nowadays, which explains why the demand for resorts in the suburbs is increasing.

C. V