Investment in Resort Villa: ATTRACTION or DANGER?
Recently, Ministry of Construction, together with State Bank of Vietnam, submitted to Prime Minister a Report on evaluation of real estate market in 2011 and on proposal of management measures to steadily and effectively develop this kind of market.

According to the Report, Ministry of Construction suggests that investments into real estate market should be effectively managed so that to fight speculation and to avoid market shock that freezes real estate market. Further on, there should be a clear roadmap for implementation of measures to reduce proportion of real estate credit, and flexible adjustment of loan proportion with the focus to be made on loan for development of business infrastructure, loan for purchase of living house, loan for completion of nearly completed projects with the view to increase and speed up the sale and the recollection of invested capital. At the same time, in order to attract capital input from sources other than credit institutions, there should be a detailed and careful research on establishment and operation of Real Estate Trust Investment Fund and the pilot operation of such Fund.

Commenting the efforts to rescue real estate market made by Ministry of Construction and State Bank of Vietnam, Mr. Phan Thanh Mai, General Secretary of Vietnam National Real Estate Association, states that the ease of credit regulations by State Bank … could stimulate the demand on housing, … however, from medium and long term perspectives, development of real estate market needs more than that. 

The ease of regulations on loan proportion in real estate sector would warm up this market sector. This is a good signal for pending real estate projects, including the resort villa projects.

Then, the question to be answered is whether investment in resort villa is an attractive or danger business decision in circumstance, when many investors seemed to lack of sufficient capacity of be a part of this “business game”.

Many pending projects were set up and run by unprofessional, inexperienced and incapable investors who are rushing into the market without sufficient consideration. As a result, customers of those investors very quickly became frustrated, although their financial perspective is fully capable to meet the market demands.

There are several reasons of such a situation. However, the key reason is the lack of awareness that real estate market requires the sufficient knowledge together with the hardworking attitude. Non-standardized and investment that is asynchronous with after-sale management and business services could make any tiny expectation of investment – buy and sale for profit – failed. At present, customers are very careful and demanding, goods are abundant for choice. Therefore, investors’ lack of capacity and long-term commitments would lead to their own failure.
Only capable investors who pursue high quality standards by having comprehensive competition strategy could enjoy success in such a demanding market sector. In order to successfully develop resort villas, investors should have deep creativeness and high capacity to manage project during its implementation and operation. That is because most of customers of this market sector are people who have great financial perspective and at the same time sufficient knowledge and many available source of referential information to make their own decision.

In addition, resort villas projects usually located at specific location, where land availability is very limited. Therefore, capacity of investors as well as their potentials and strategic vision are very important to bring success to the resort projects.

An investor who is able to utilize its own advantages by having appropriate approach and strategy could be successful even when the market is down. The “healthiness” of investor could be accurately measured partly by implementation progress of its pending projects.

Vinaconex-ITC is proud to be a professional real estate investor and developer. Vinaconex-ITC had clearly set out its development policy and strategy and, from day to day, is working hard to confirm the rationality of approved development policy and strategy as well as the reputation of a professional real estate investor and developer. By implementing Cat Ba Amatina Project in accordance with the preset plan, and especially by starting building villas,

Vinaconex-ITC is gradually developing the international standard, most attractive resort of the region and the country that could be a must tourist destination, especially for foreign visitors. In so doing, Vinaconex-ITC receives great support from central and local Government agencies. The Project is also drawing in special attention of domestic and foreign investors, professional real estate developers and brokers. These factors make Cat Ba Amatina Project much more attractive project and an outstanding sample of real estate tourist investment in current time. 
 
Cat Ba Amatina Project of Vinaconex-ITC
 

General Director Tran Ngoc Quang at press conference held by Dr. John Snow, Chairman of Cerberus  - a world’s leading capital management firm
 

Customers and investors pay attention to Cat Ba Amatina Project

(Source: http://www.baoxaydung.com.vn; http://www.vitc.com.vn)
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