Demand for resort real estate drops the most in a decade

According to the real estate market report for the second quarter of 2004 by DKRA Group, the resort villa segment, primary supply decreased by 5% compared to the same period. Overall demand was low, consumption decreased by 69% compared to the same period, the lowest level in the past decade.

Mr. Nguyen Hong Thang, Investment Director of DKRA Group, said that the primary selling price level continues to trend sideways. The secondary market recorded an average price reduction of 15% - 20% compared to the contract price, locally there are projects with deep discounts of 40% - 50% but still difficult to sell.

Many resort real estate projects have sharply reduced prices but are still difficult to sell.

Notably, the supply of townhouses and shophouses in resort real estate projects continued to decline, with more than 97% of the primary supply in the quarter coming from inventory of old projects. The market has not yet escaped the “dark zone” despite the many improvements in the tourism industry. Primary selling prices have not fluctuated much and continue to trend sideways. The market continues to face many difficulties in liquidity and price increase potential when investor confidence and the recovery of this segment are still very low.

For condotels, in the second quarter, although primary supply increased by 51% over the same period, most of it came from inventory of old projects, accounting for more than 66%.

Notably, new supply recorded significant growth, an increase of more than 25 times compared to the same period but only locally concentrated in one project in Khanh Hoa . Accordingly, consumption also increased dramatically compared to the same period (increased 6.8 times), mainly concentrated in one project in Khanh Hoa.

Old projects in particular are mostly experiencing slow sales or closing down without recording any transactions. Transactions are concentrated in large-scale projects with selling prices below VND3 billion/unit.

Forecasting the last 6 months of 2024, Mr. Vo Hong Thang said that the condotel supply will decrease significantly compared to the second quarter of 2024, fluctuating around 400 - 500 units, mainly concentrated in Da Nang , Khanh Hoa and Quang Ninh.

Meanwhile, the supply of resort villas, townhouses and resort shophouses did not fluctuate much compared to the second quarter.

Overall market demand continues to remain low, with the downward trend expected to last until the end of 2024. Primary prices remain stable and are unlikely to have clear fluctuations in the short term.

Source: https://nld.com.vn/bat-dong-san-nghi-duong-giam-gia-den-40-50-van-e-196240714112912364.htm