Mr. Nguyen Duc Quynh, Executive Assistant Manager at Furama Resort Danang, the name behind Furama Villas, tells VET about the impact of new laws on resort real estate in general and Furama Villas in particular.
■ Two long-awaited pieces of legislation came into effect from July 1, 2015 - the Law on Housing and the Law on Real Estate Business. Insiders believe their impact will be significant and will mark an important step towards opening up Vietnam’s real estate market to overseas investment. What are your thoughts on this?
The two laws will have a major effect on real estate in general and especially on the resort real estate market. We have received a lot of attention from both Overseas Vietnam and foreigners since the new pieces of the legislation came into being. Many, however, remain concerned by the stability of legal provisions in Vietnam. There are yet to be any specific instructions of how the laws are to be applied.
■ Have you seen any effect from the new laws on your business performance and transaction volumes at Furama Villas?
To be honest, it’s surprising how people are interested in this kind of news. Let me just say, the market is now open to all real estate investors and potential homeowners. Since July 1 Furama has sold 15 beautiful villas, bringing total sales in 2015 to 23.
■ Do you have plans to approach more foreign investors and homebuyers?
Of course. Furama has had plans to reach out to Overseas Vietnamese, who truly want to own a home in their motherland for the long term. We have introduced policies to approach international travelers staying at Furama Villas.
■ What is the latest information on the development of Furama Villas?
Furama Villas - an expansion of the Furama Resort to the south - is in the process of completing all 108 villas. Sixty-four villas have been opened, as have the central pool and the restaurant and bar, with 130 seats. In the first eight months of this year Furama Danang put together a comprehensive collaborative effort with the owners of villas for rent and achieved a satisfactory permanent occupancy rate of over 75 per cent.
■ What are your thoughts on the major opportunities and challenges facing the development of resort real estate in Vietnam?
The potential for the development of resort real estate that can earn good profits has always attracted the interest of investors. However, the high cost of management and operation and the explosion of real estate projects have triggered fierce competition among those with similar concepts. The rental pool depends upon the development of Vietnam’s tourism sector.