Vietnam's second home market is still in its infancy, but it is attracting significant interest from savvy investors, consulting firm CB Richard Ellis said in a report released on Tuesday.
"The past number of years have seen significant activity in the second home market in terms of construction and interest coming from international resort operators looking to enter the market," Marc Townsend, managing director of CB Richard Ellis Vietnam, said in the report.
"The perception of owning a second home or city retreat is still a new phenomenon here in Vietnam, but it is slowly starting to take off," Townsend said.
He said there is a "bigger mix of project offerings to buyers" with a greater choice in terms of location. The second home market seems to be expanding from traditional locations in and around Da Nang to new spots including resort towns like Nha Trang, Vung Tau and Phan Thiet.
"There is no doubt that Vietnam's second home market has infinite possibilities," said Townsend, "however developers must learn from their neighbors in Thailand to ensure success."
According to CBRE, Thailand's second home market is "well established and in its adolescent stages." The price of Thai villas and condos can be up to double that of Vietnamese ones. In terms of buyers, only 18 percent of second home sales come from local buyers in Thailand compared to Vietnam's 85 percent, the company said.