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Current status of the resort real estate market in Vietnam

Given the many changes and difficulties facing the resort real estate market, one of the solutions deployed by investors is to launch many attractive profit commitment policies to stimulate market demand. Whether this policy still attractive to investors after the Covid-19 pandemic? The article shows that the profit commitment policy of resort real estate projects is still attractive to investors, but it is not a prerequisite factor for them to invest money, but rather the following factors: Legal completion of the project; Reputation of the investor, and the project operator; and Potential of local tourism development, etc.


OVERVIEW OF THE RESORT REAL ESTATE MARKET IN VIETNAM


Resort real estate is a real estate model built at resorts and tourist areas, including hill villas, beach villas, and hotel apartments, and then resold to investors. Resort real estate is associated with serving tourists, providing accommodation and commercial services... bringing interesting experiences and attractive amenities to visitors. Therefore, resort real estate is greatly related to tourism potential, as well as the need of tourists to use rooms. This is the most direct and important factor in the business process that brings profits to investors, to share profits with customers through profit commitment programs.


CHART: SUPPLY OF BEACH VILLAS AND CONDOTELS FROM NEW PROJECTS

SUPPLY OF BEACH VILLAS AND CONDOTELS FROM NEW PROJECTS
Source: DKRA Vietnam Joint Stock Company

The first resort real estate project appeared in Vietnam in 2015 and began to develop explosively in the period 2015-2017 in main markets, such as Nha Trang, Da Nang, Phu Quoc..., with high growth rates. The supply of hotels and condotels is up to 50% - 60%/year. However, the growth rate of resort real estate changed direction in 2018, due to many reasons, such as: The legality of condotels is not complete and many inadequacies make investors still hesitant; The investor's operating capacity is still limited; Banks narrow loans for real estate investment customers; Condotel prices are too high compared to 2017. Thanks to overcoming these limitations, 2019 witnessed the return of development of the resort real estate market, of which condotels account for the majority. However, by the end of 2019, the real estate market was negatively affected by the Covid-19 pandemic. This causes the resort real estate segment to show signs of freezing and no transactions until early 2022. This causes the new supply of beach villas to decline seriously (Chart) (DKRA Joint Stock Company Vietnam, 2023).


(Tap chi Kinh te & Du bao)


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