Many resort properties in Lam Dong are for sale because supply exceeds demand.

The movement of buying land to build homestays, “leaving the city for the forest” or a second home in the suburbs is an investment trend that appeared more than 10 years ago and has lasted until the past few years. At that time, land prices in suburban areas or neighboring provinces of big cities were still very cheap, suitable for long-term investment needs combined with homestay business.

In recent years, land in the suburbs and especially in the provinces that can be exploited for tourism and resort investment has been pushed up in price due to the high demand of investors. Large plots of land interspersed with perennial crop land and residential land are always sought after by many people with the desire to benefit from homestay business, eco-tourism combined with resort, and the land also has the potential to increase in price.

However, those calculations have encountered many obstacles, including the period of frozen cash flow due to the COVID-19 pandemic. The tourism industry has been affected nationwide, causing many people who borrowed money to invest to be unable to cope with financial pressure. For that reason, in recent times, many homestays have been advertised for sale at a loss but it is difficult to find buyers.

Investing in resorts in suburban areas or near tourist cities has been an investment trend for many years.

As a province with great tourism potential, the number of tourists flocking to Lam Dong has not been affected as much as some other localities. However, there are still many homestays and resorts being sold off like other localities.

On some real estate forums, many homestays, farmstays or plots of land with beautiful views suitable for resorts are being advertised for sale at prices ranging from 3 billion to more than 20 billion, mainly concentrated in districts such as Bao Lam, Bao Loc, Lam Ha, Di Linh...

For example, in Lam Ha, a person is quickly selling a resort in Nam Ban Town with an area of ​​over 700m2, with a full red book for 3.6 billion VND. This land has 100m2 of residential land, the rest is garden land. This area is not far from Da Lat city, close to local tourist areas as well as convenient to travel to the airport.

The landowner also advertised that many ideal check-in areas are being developed around the area, with potential for tourism development in the future. However, due to financial difficulties and insufficient operating costs, the business had to stop and be put up for sale.

Many homestays, villas, and resorts in Lam Dong are for sale.

Another plot of land with an area of ​​1,000m2 in Loc Thang town, Bao Lam district is also being sold for only 900 million VND. This plot of land is advertised as being located in a beautiful view, suitable for homestay, easy to do business. However, this selling price is only half the market price, the landowner even said that "enthusiastic" customers can receive a 10% discount on the contract value.

Also in Bao Lam, a 4,000m2 resort has taken shape with 3 bungalows, 3 thatched roof houses and a 1-storey house being offered for sale at 23 billion VND, equivalent to nearly 6 million VND/m2. This is a plot of land located next to the Tan Phu - Bao Loc highway, with development potential when the highway project starts construction. With such good business potential, the owner of this resort said that this place is still doing well but still wants to sell it quickly to... go abroad.

According to Mr. La Minh Thang, a real estate broker in Lam Dong, the trend of buying houses to build resorts and homestays was very popular in Lam Dong in previous years, because this place has a pleasant climate, beautiful scenery and is easy to do business due to the large number of tourists. However, due to the high investment costs, tourism has been frozen for many years due to the pandemic, so many people suddenly "go into debt" when all previous operating and advertising costs are lost.

“Many people put their properties up for sale because they have to pay the bank, while others give up because they invested in the wrong location. They choose other districts in Lam Dong, close to Da Lat city because of cheap land prices and a lot of development potential, but they do not calculate the costs and the ability to bear the burden in the long term. Because these are developing areas, the number of tourists is not as large as Da Lat, so the capital recovery will be slower. In addition, due to supply exceeding demand, many homestays fall into a state of lacking guests, not meeting enough cash flow to pay off debts,” said Mr. Thang.

A Farmstay is advertised as a good business with high growth potential but still has to be put up for sale.

This broker also said that in the past, many homestays with prices of around 3 billion VND have been transferred to new owners. As for resorts and homestays with large areas and prices up to tens of billions, very few people are interested. Because the market is currently in a general difficult situation, many people are still worried about economic risks at the end of the year, so they do not want to spend money.

In addition, through research, there are also some homestays in Da Lat that are being sold at "loss-cutting" prices for many reasons. However, most of these homestays are still operating and bringing in stable revenue.

Source: https://www.congluan.vn/nhieu-homestay-khu-nghi-duong-tai-lam-dong-bi-rao-ban-cat-lo-vi-ap-luc-tai-chinh-post255727.html