Recovery momentum of the resort real estate market
According to Economy & Urbanism, entering 2024 with drastic direction from the Government, in removing difficulties and accelerating the disbursement of public investment projects, especially transport infrastructure projects connecting economic regions. Key economic areas such as: Long Thanh International Airport, North-South Expressway, ring roads in Hanoi and Ho Chi Minh City, highways in the Southern provinces connecting the horizontal axis of Bien Hoa - Vung Tau, Ben Luc - Long Thanh, Ring Road 3 (Ho Chi Minh City)... create general motivation for the entire economy.
The resort real estate segment is also benefiting from the Government's promotion of public investment in transportation infrastructure projects, helping to build more diverse tourism products. Familiar destinations such as Da Nang, Quy Nhon, Phu Yen, Khanh Hoa, Phu Quoc... When local authorities are focusing on transport infrastructure projects, investors are also actively re-planning their strategies. strategy to restart previously licensed projects.
In addition, the investor also focuses on building new product packages, prioritizing accommodation and resort activities, combining health care or medical tourism to meet the needs of customers. meet demand and attract more domestic and international visitors. In particular, in large urban areas (Hanoi, Ho Chi Minh City) investors are also focusing on luxury products to serve the group of business travelers combined with leisure and the mid-high-end hotel segment ( midscale – upper midscale hotel) also recorded good growth rates in locations near industrial parks.
Transportation projects in both the Northern and Southern regions are being promoted and creating momentum for recovery for resort tourism real estate. Illustration photo from the internet
“The Government's acceleration of disbursement of public investment capital, focusing on key transportation projects across the country, is creating a positive driving force to promote the recovery of the real estate market in general and its segments. Resort tourism real estate in particular. Because real estate is always associated with infrastructure, only places with good infrastructure will attract investors", Vice Chairman of Vietnam Real Estate Association Dr. Nguyen Van Dinh acknowledged.
Also according to the representative of the Vietnam Real Estate Association, from the end of the fourth quarter of 2023, the resort real estate segment has recorded a bustling return due to large-scale projects, rumored by investors (expected ) or kick off programs... that have not been implemented for a long time, since the Covid-19 epidemic occurred.
However, basically up to this point, the resort real estate segment is still recovering, the market is moving sideways, some new projects have specific asking prices such as: The Ocean Villas Quy Nhon project with price Selling villas and townhouses fluctuates around 33,33-44,58 million VND/m²; Green Center project - Western Saigon golf eco-village, selling price of villas and townhouses ranges from 32,5 - 44,67 million VND/m²...
However, according to experts, the most important thing is that the real estate market has been "untied" after the revised and supplemented law projects (Housing Law, Real Estate Business Law, Land Law). passed by the National Assembly. Notably, right after the law projects were approved, while waiting for their official implementation, from the beginning of 2024, relevant ministries and branches have issued many documents guiding local implementation. Solutions to overcome difficulties in the real estate market.
Specifically, for the resort real estate segment, the Ministry of Natural Resources and Environment sent an official dispatch to localities requesting to review and issue red books for condotels, officetels... in accordance with regulations. Because there are a large number of tourist apartments (condotel), tourist villas (resort villa), office apartments combined with accommodation, commercial services (officetel)... that have not been granted land use rights certificates and Assets attached to land not only affect the legal rights and interests of people but also negatively impact the recovery and growth process of the real estate market.
Resort real estate had no new supply at the beginning of the year
According to Vnexpress, in a recent report by DKRA Group, all three segments including codotel, villas, resort shophouses in Da Nang and surrounding areas did not record new supply for sale in the last two months.
In particular, the resort villa segment has not even had new products for sale in more than a year. Many new projects here continuously postpone their sales time, while primary projects almost close their shopping carts and do not generate transactions.
Similarly, many codotel investors also delay sales time. Recently, a series of codotel projects have also had to apply for conversion to apartments. According to DKRA statistics nationwide, in the past 2 months, only one resort project opened for sale with 14 apartments but in the next phase.
DKRA predicts that the gloomy situation of the resort real estate market will continue to last as there is no sign of recovery in the short term. Although the tourism industry has prospered, the fact that many projects are facing violations, slow construction progress, and unclear legal regulations have affected investor confidence.
Currently, coastal tourism capitals across the country have tens of thousands of shophouses, townhouses, and resort villas in inventory. The resort real estate market is almost in a state of hibernation from the beginning of 2023. For the whole of last year, DKRA estimated that consumption was only equivalent to 10% of the previous year and was also the lowest level since 2014. Many investors launched a series of stimulus policies such as early payment discounts, interest rate subsidies, and sublease commitments, but they were ineffective.
According to Savills Hotels, by the fourth quarter of 2023, more than 83.000 villa and resort apartment products in the middle and high-end segments have been opened for sale on the market. Of these, about 17% have opened for sale but are stopping implementation.
With resort shophouse products, more than 14.600 products have been opened for sale in coastal destinations. However, 60% of these have not been put into operation or business because the owners are still struggling to know what to do after receiving the handover.
Mr. Mauro Gasparotti, Director of Savills Hotels, also warned that some coastal markets in Vietnam are facing the risk of oversupply of resort products due to rapid development over the years.
Dao Vu (Th)