Latest report from Savills shows more movement in city's residential market than hotel market.
According to a report on Nha Trang’s real estate market prepared by Savills, the beach city’s residential market had a total of around 9,200 plots or units in 2014 from 43 land plots, villas, townhouses and apartment projects.
The apartment segment has the greatest market share, at 49 per cent, followed by land plots at 41 per cent. Most apartment projects are located along the coastline, with many on Tran Phu Street. Landed property projects for second homes and investment are spreading to the west due to extensive land stocks.
Due to affordable prices and flexibility in construction, land plots are preferred and have the greatest transaction volume. There are six primary land plot projects with prices ranging from VND3.6 million ($170) per square meter to VND9.6 million ($457) per square meter land area.
The land plot and apartment segment is preferred by buyers, mainly from Hanoi and Ho Chi Minh City, who are looking to purchase a holiday home and prefer projects by the beach with ocean views. However, due to limited supply, projects in the western areas such as Vinh Thai and Phuoc Hai wards have become a favored option among purchasers. The two segments are expected to provide 34 future residential projects with a total area of more than 1,100 ha.
Meanwhile, the hotel market in 2014 was quiet, with market performance being weaker than in 2013. With a strong increase in stock and tightening expenditure by Russian tourists (the main visitors to Nha Trang), the performance of four- and five-star hotels was negatively affected. Average occupancy in 2014 was 70 per cent, a decline of 6 percentage points compared with 2013.
Hotel, however, was still the leading segment, with 18 future projects in the four- and five-star segments at the end of 2014. Moreover, from 2007 to 2014, international visitors to Khanh Hoa increased by 18 per cent. In 2014 there were more than 850,000 international arrivals and approximately 2.8 million domestic visitors. This year Nha Trang is expected to provide 3,200 rooms from projects.