In Vietnam, the tourism industry is experiencing a rapid growth trend, attracting not only domestic travelers but also international tourists. Consequently, homestays are on the rise to meet the lodging demands of visitors. At present, many individuals wish to embark on an entrepreneurial journey by establishing homestays but lack clarity regarding the construction costs. In this article, Hac San has compiled the construction costs for newcomers interested in this venture, covering expenses for both design and construction to create a complete homestay. We encourage you to review this information and thoroughly prepare for your project.
Aggregating Homestay Construction Costs
Land Purchase or Rental Costs for Homestay Construction (If You Don’t Already Own the Land)
To construct a homestay, the first step is securing a piece of land. Therefore, the cost of land purchase or rental should be considered as one of the significant expenses in homestay construction. The price of land varies considerably and is relatively high. Here are some land prices in various areas as of 2023:
- Da lat: 66 – 300 million VND/m2
- Phu Quoc: 12 – 74 million VND/m2
- Phan Thiet: 30 – 100 million VND/m2
- Quy Nhon: 80 – 300 million VND/m2
You can also check the current market prices for different periods at real estate trading platforms.
Legal Procedure Costs for Homestay Construction
To construct a homestay or any business model, you must obtain a construction permit. The fee for obtaining a construction permit for one homestay is 100,000 VND per permit. If you are unfamiliar with the construction permit procedures, you can consider hiring a legal office or attorney.
Homestay Design Costs
One of the most critical aspects of homestay construction is its aesthetic appeal, which significantly influences its attractiveness to potential guests. A well-designed homestay, harmonious in every detail, and meeting the needs of guests, is more likely to attract visitors.
If you lack expertise in homestay design, you can hire external design professionals. Many firms in the market offer architectural and interior design services for homestays, similar to Hac San. Alternatively, you can contact Hac San directly, and we will visit your location, conduct a survey, and provide design concepts and drawings tailored to your needs.
The design costs may vary depending on specific requirements and the size of the homestay. It’s essential to consider reputable and well-established firms in the market to ensure that your investment is well-spent and yields the desired results.
Costs for Hiring a Contractor, Labor, and Building Materials
The construction phase typically constitutes a significant portion of your budget. You can choose to hire a general contractor for a turnkey construction service or opt for a design-and-build approach for convenience.
The cost of building materials will depend on the quality you select, and it can vary significantly. However, Hac San recommends considering the long-term benefits of your homestay and investing in quality materials.
Costs for Electricity and Water During Construction
Electricity and water are essential during the construction process, and while their unit costs may not be high, they can add up to a substantial expense during construction.
Furniture Procurement Costs
To make your homestay operational, you will need to furnish it adequately. If you choose to hire Hac San’s construction team, we can provide you with a comprehensive package price. Alternatively, you can create a list of the furniture and equipment you need to purchase, considering factors such as color, style, and design to match your homestay’s aesthetic.
Different rooms may require various items, so it’s essential to make a detailed checklist for each area to keep your expenses under control.
Costs for Exterior Furnishing
To create a fully cohesive and aesthetically pleasing homestay, both the interior and exterior should complement each other. A well-designed homestay that offers a harmonious and visually appealing environment is more likely to attract guests. Typically, the exterior areas are landscaped with plants and decorative features. When you hire Hac San for homestay design and construction, we ensure a holistic approach, harmonizing both interior and exterior design, resulting in a highly aesthetic and appealing overall environment.
Incidental Costs During Homestay Construction
In the construction process, there are often unexpected costs that can amount to 3-5% of your overall budget, or potentially even more.
Homestay Construction Costs for Newcomers in 2023
To easily estimate the construction costs for a new homestay, you can refer to the table below:
|Cost Item||Estimated Cost|
|Land purchase or rental||1 – 5 billion VND|
|Construction||1 – 3 billion VND|
|Interior furnishings||500 million – 1 billion VND|
|Other costs||200 million – 500 million VND|
Therefore, the total construction cost for a new homestay for newcomers in 2023 typically ranges from 2 to 7 billion VND. However, the exact cost may vary depending on the location, terrain, area, and the quality of materials you choose.
Common Mistakes to Avoid When Calculating Homestay Construction Costs for Newcomers
- In the process of calculating the construction costs for a new homestay, it’s essential to avoid certain common mistakes:
- Ensure all related costs are considered, including furnishings, exterior decorations, construction, design, and building materials.
- Strictly control expenses to prevent unexpected overruns.
- Avoid extravagant designs that can significantly increase construction costs.
- Seek advice from experts if you lack the necessary expertise to ensure the feasibility of your plan.
Ways to Optimize Homestay Construction Costs
Building a homestay can be costly, and it’s essential to manage your expenses effectively. Here are some ways to optimize your construction costs:
Option 1: Rent an Existing Property for Your Homestay
If you don’t have the budget to construct a brand-new homestay, consider renting a property for a more extended period, ranging from 3 to 5 years. If your homestay business is successful during this time, you may extend the lease further. When negotiating the lease, ensure clear terms to avoid complications in the future.
Option 2: Prefabricated Homestay Construction
To reduce construction costs significantly, consider using prefabricated building methods for your homestay. Prefabricated homestays require less investment in design, materials, and labor. Nowadays, prefabricated homestays with unique designs are gaining popularity and attracting many guests.
Option 3: Hands-On Involvement
You can be personally involved in the design and setup of your homestay. Utilize recycled materials for decoration, such as small plant pots made from plastic bottles, tables, chairs, and shelves. This approach can lead to significant cost savings.
Hac San has provided a comprehensive overview of the costs associated with building a homestay for newcomers. You can use this information as a reference to prepare for your project. If you need homestay design or construction services, please don’t hesitate to contact Hac San at 090 683 5187 or 028 7300 3975. We are always ready to assist you.
Please get in touch with Hac San as soon as you have a need.
Address: 168/2 Nguyen Gia Tri, Ward 25, Binh Thanh District, HCMC