New trick of investors to stimulate market demand

According to the 2022 real estate market report of Da Nang and surrounding areas, DKRA Real Estate Services Group said that the tourism and resort real estate segment here is still in a state of scarce supply, but the project absorption rate is very low. This has caused many projects to be "shelved" in inventory.

There is a paradox, despite the very low demand, the opening prices of new projects continue to increase sharply. And to stimulate the market, investors have made new moves.

Da Nang tourist resort real estate: new direction of investors to stimulate market demand — Da Nang tourism and resort real estate is sluggish for a long time. (Photo: TR)

Accordingly, instead of committing to profits as before, investors are now shifting to sharing revenue with investors. At the same time, investors also offer other programs such as interest rate support, principal grace period, etc. to stimulate market demand.

Talking to reporters of the Journalists and Public Opinion Newspaper, a representative of DKRA said: The trend of revenue sharing is gradually replacing the form of profit sharing. Projects applying the form of revenue sharing are also gradually attracting the attention of customers because of the transparency of cash flow.

Despite offering many attractive incentive programs, DKRA believes that the tourism and resort real estate segment in Da Nang and surrounding areas will still not be able to make a breakthrough in 2023.

“General market demand is at the same level as in 2022. Primary prices continue to increase,” said a DKRA representative.

In its report, DKRA said that in the resort villa segment, the market has 103 new units, from 3 new projects completed in 2022, down 47% compared to the same period last year. The consumption rate reached 42%, down 26% compared to 2021.

Most of the supply comes from inventory of old projects that were launched in previous years. Primary prices increased by 10% - 25% over the same period.

The townhouse and resort shophouse segment is still quite new and has not really developed in the market of the three central provinces. In 2022, the new supply was only about 138 units from 1 project, but this supply increased 2.2 times compared to 2021.

Market demand is very low, recorded transactions are mainly concentrated in a project in Quang Nam , with consumption reaching about 132 units, equivalent to 96% of new supply and 14.6 times higher than last year.

Market liquidity has almost stagnated in the last months of 2022. Primary selling prices have not fluctuated much compared to the same period, the current offering price ranges from 7.1 - 16.3 billion VND/unit.

Regarding condotels, in 2022, 540 condotels were opened for sale from 4 projects. The consumption rate on new supply reached 60% (324 units), market demand increased but not significantly, most of the consumption was concentrated mainly in Quang Nam and Da Nang. Only Thua Thien Hue continued to have no transactions.

The primary price level continues to increase, with an increase of 20% - 25% due to the pressure of rising input costs. Projects developed by reputable investors, with brands in the market and operated by international operators are still the priority choice of customers.

DKRA forecasts that in 2023, the supply of resort villas will continue to be scarce, with about 100 - 150 units. The resort townhouse/shophouse segment is forecast to have about 150 - 200 units supplied to the market. Meanwhile, the supply of condotels may decrease compared to 2022, fluctuating around 300 - 400 units.

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