After years of lying dormant due to developers' financial constraints and the world's economic recession, resorts in the central coastal city has revitalised construction and more are selling second homes.

VinaCapital Real Estate is the latest developer jumping onto the bandwagon, offering 115 villas for sale. The Ocean Villas is part of the 260 hectare Da Nang Beach Resort, an integrated resort community featuring a JW Marriott resort, two l8-hole Greg Norman-designed golf courses, a cultural centre and up to 400 villas.

The Ocean Villas range from two to five bedrooms in size on plots of 500-1,400 square metres and are designed as modern living spaces with views of the golf course. beach and small canals meandering through the site. Three model villas were launched a week ago.

The Ocean Villas will be developed in two phases, with the first one building SO villas on 12 hectares and handover is expected in the third quarter of next year.

Prices range from $375,000 - $S71.000 per unit, according to Matthew Koziora, sales and marketing director of VinaCapital Real Estate.

Koziora said Vietnamese could buy villas on a free-hold basis, while foreigners could take out long-term leases of up to 50 years. To date, SO percent of the first phase has been sold with most clients coming from Hanoi and a small number from HCM City. There have been some responses from Hong Kong and Singapore.

"We are concentrating on Vietnamese customers," he said. "The Vietnamese market is a lot healthier."

Raymond Moore, head of Savills agency sales in HCM City, said: "Since introducing the Ocean Villas in Hanoi and HCM City in July. We have received numerous enquiries. It shows the strong demand."

A few minutes drive from the Ocean Villas, Savills has also been selling Hyatt Regency Da Nang Residences, which is offering 174 condominiums and 27 villas for sales. Other developments such as Furama Villas and Olalani are also selling villas and condominiums.

Moore said Da Nang had established itself as a preferred second-home destination in Vietnam with more resorts selling villas and condominiums to Vietnamese.

Robert Elliott, project director of Da Nang Golf Club, added that more golf courses to come on line in Da Nang would create a golfing destination that would rival Thailand's Phuket or China's Hainan Island.

The IS-hole Montgomerie Links is the only golf course in the central region at present and Da Nang Beach Resort plans to complete the IS-hole Dunes, late this year, that will cater to buyers and guests of villas and condominiums around the areas.

Vietnam Investment Review - September 8, 2009