Resort real estate continues its "hibernation" period despite maintaining high discounts

The above information is recorded in the real estate market report in April published by DKRA Group recently. Accordingly, for the resort villa segment, supply continued to decrease from the end of the second quarter of 2022, the number of projects launched on the market was extremely modest, supply decreased by 69% compared to the previous month and decreased by 98% compared to the same period.

Specifically, in the month, there were only 2 projects, 1 new project and 1 project opening for sale in the next phase, with 12 units joining the supply. The North and the South continued to lead the supply of the whole market, while the Central region recorded no new projects for 4 consecutive months.

Meanwhile, the consumption volume is only 3 units, equivalent to a consumption rate of 38%. This comes from very low demand, new projects have slow sales. 60% of primary projects have closed their baskets without recording any transactions.

According to DKRA's assessment, primary market selling prices remained unchanged compared to the previous month. In the North, the highest primary market selling price recorded was 28.8 billion VND/unit and the lowest was 8.5 billion VND/unit.

In the South, the highest primary price is 52.2 billion VND/unit and the lowest is 29.1 billion VND/unit. It is expected that in the next month, market supply and demand may increase slightly but without many clear fluctuations, mainly concentrated in Phu Quoc. Interest rate support policies, principal grace period, etc. are still applied by many investors to support buyers in this segment.

The resort real estate market continues its stagnant period despite maintaining high discounts (Figure 1). — Local supply ratios and primary market prices.

In the resort townhouse/shophouse segment, only 20 units were added to the supply in April, coming from 2 new projects, a 33% increase compared to the previous month, but still a very low and insignificant amount, mainly concentrated in Phu Quoc and Tuyen Quang . Meanwhile, sales only reached 8 units, a 99% decrease compared to the same period last year.

Market demand remains modest, equivalent to only 1% compared to the same period in 2022. Sales for new projects are slow, with over 60% of primary market projects showing no transactions recorded. Primary market prices remained unchanged from the previous month, and discounts of 30%-40% for quick payments continue to be applied to stimulate market demand.

It is expected that in the coming month, market supply and demand will increase slightly, focusing on projects with complete legal documentation and developed by financially strong investors. Meanwhile, the North and South will continue to lead in supply, while the Central region will maintain a scarcity of new projects.

In the Condotel segment, 84 units were added to the new supply from 2 projects, 1 new project, and 1 project in its next phase, a decrease of over 58% compared to March and a decrease of 17% compared to the same period last year. New sales reached 32 units, equivalent to a sales rate of 38%.

The resort real estate market continues its stagnant period despite maintaining high discounts (Figure 2). — Condotel sales remain low.

Supply remains very low, down more than 58% from the previous month and approximately 17% year-on-year. The North and Central regions continue to lead in supply. The South, however, has not recorded any new supply for the fourth consecutive month.

Primary selling prices have not fluctuated much, preferential programs, quick payment discounts, principal grace periods, interest rate support, etc. are still widely applied to attract customers' attention. Projects with full legal documents, operated by 4* - 5* international brands are still prioritized by the market and have a more positive sales situation compared to the general market level.

In the North, the lowest primary market price is 31 million VND/m2, and the highest is 56.1 million VND/m2. Despite the sluggish market, prices in the South are very high, with the lowest primary market price at 109.6 million VND/m2 and the highest reaching 139.4 million VND/m2.

It is expected that in the coming month, market supply and demand will continue to recover thanks to positive information from the Government ; however, there will not be many significant changes in the short term.

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