Resort real estate is still limited in supply
In recent years, the real estate market has encountered many difficulties in terms of transactions without liquidity. In particular, the problem of legal procedures accounts for 70% of businesses’ difficulties. Among them, resort real estate is a prominent segment that is “congested” due to the lack of legal clearance, causing this segment to “plunge” in all aspects.
According to records, DKRA Vietnam’s data from the beginning of 2023 shows a shortage of new supply and consumption in the resort real estate segment. In the resort villa segment, the market recorded 2,542 primary supply units from 67 projects in 2023, down 58% compared to the previous year.
The consumption rate reached 21% (equivalent to 526 units), only 13% compared to 2022. The primary selling price level did not change over the same period and continued to remain high, regarding 6 – 155 7 billion VND/unit.
The resort real estate segment has been severely affected in recent times. Photo: Gia Linh
The resort townhouse/shophouse segment recorded primary supply in 2023 coming from 34 projects, providing regarding 3,271 units to the market, down 62% compared to 2022. Market demand decreased sharply with consumption reaching regarding 366 units, equivalent to 6% compared to last year.
Most transactions are concentrated in projects with complete legal status, developed by large investors and priced below 10 billion VND/unit. Primary selling prices did not have many clear fluctuations over the same period and still remained at a high level, averaging from 15 – 40 billion VND/unit.
The condotel segment in 2023 recorded 5,937 units launched for sale from 45 projects (including 4 new projects). The ratio of consumption to primary supply reached 20% (1,164 units).
Meanwhile, according to data from the Vietnam Association of Real Estate Brokers (VARS), in 2023, the country will receive regarding 3,165 new tourism and resort real estate products, down more than 80% compared to 2022.
The entire market recorded 726 tourism and resort real estate products successfully traded in 2023. The number of transactions has not recovered as expected because some projects that many investors are interested in are facing problems. Due to legal reasons, it cannot be sold yet.
“Untying” the legal system, developing quality resort real estate products
VARS experts assess that although supply is limited, in 2023 many investors will still offer resort real estate products with bookings many times higher than the number of open sales.
Many businesses offer resort real estate and tourist apartment segments such as: The 5Way Phu Quoc, Meypearl Harmony Phu Quoc, Regal Legend Quang Binh, The Ocean Resort Quy Nhon, Merry Land Quy Nhon Binh Dinh; Nova World, Thanh Long Bay (Phan Thiet Binh Thuan)…
Many businesses restart their sales strategies. Photo: Gia Linh
Mr. Nguyen Van Dinh – Chairman of VARS commented that the supply of resort real estate is improving when a series of large-scale projects begin to launch sales. This is the “key” to help resort products be sold quickly, customers are willing to pay down thanks to preferential policies of quick payment discounts, interest rate support, and grace period for principal loan commitments. once more… of the investor. VARS leaders also forecast that, in 2024, the real estate market will continue its recovery trend with clearly improved transaction results.
From a business perspective, a representative of Novaland Group said: “Currently, as the financial market gradually recovers, banks begin to reduce lending interest rates and disburse funds into real estate projects. Factors This continues to increase the driving force for the real estate market to recover faster, more safely and more sustainably. In recent times, the vitality in attractive economic and tourist megacities is the amenities that are growing. gradually put into operation, increasing services for tourists and promoting the existing potential of the projects.”
Meanwhile, Mr. Luu Quang Tien – Deputy Director of Datxanh Services Institute for Economic – Financial – Real Estate Research said that currently, if the project’s legal bottlenecks can be removed, investors will focus on to develop segments and items in its resort real estate project. Legal adjustment and infrastructure development will bring investors peace of mind when pouring capital into buying projects.
Investors focus on construction and completion of project infrastructure and utilities to hand over to customers. Photo: Gia Linh
Mr. Luong Si Khoa – Deputy General Director of Nam Group said: “The resort real estate segment faces many typical difficulties such as credit capital, project legal procedures, and customers affected by economic conditions. economy… however, investors still make great efforts to overcome difficult times with customers.”
Also according to Mr. Khoa, project investors now have a new strategy. In 2024, in addition to developing sales, businesses will pay more attention to the construction and completion of infrastructure and project utilities to hand over to investors.
