Potential supply of tourism and resort real estate

DNVN - According to the Vietnam Real Estate Brokers Association, the supply of tourism and resort real estate in 2024 has the opportunity to improve by about 20% compared to 2023. In particular, the type of beach apartments is the highlight of the segment, because it both meets the need for ownership and can be exploited for rent, creating cash flow.

The Vietnam Association of Realtors (VARS) said that the tourism and resort real estate market in Vietnam has grown strongly in the past few years. Thousands of resorts, resorts, and high-end tourism real estate projects were developed before continuously fluctuating and falling into a prolonged gloomy state since mid-2022.

In 2023, the country will have about 3,165 new resort real estate products, down more than 80% compared to 2022. Transaction volume has not recovered as expected.

The entire market recorded only 726 successful transactions in 2023, projects are still facing legal problems so they cannot be released. Meanwhile, the inventory is mainly high-end, high-value products, which have to compete directly with loss-cutting products from investors who bought earlier.

Inventory of tourism and resort real estate is mainly high-end, high-value products.

In the secondary market, beach villas and resort shophouses also face the reality of liquidity difficulties despite deep price drops.

Up to now, while other segments have shown many signs of recovery, tourism and resort real estate has not yet escaped the "gloomy" state. Although the tourism industry is growing strongly, almost reaching the same level as in 2019 - the year before the COVID-19 pandemic.

Specifically, in the first two months of 2024, there were more than 3 million international visitors to Vietnam. An increase of 68.7% over the same period last year and equal to 98.5% compared to 2019.

However, VARS believes that the completion of the legal framework, the announcement of planning, the acceleration of the implementation of infrastructure projects, especially the "Vietnam Tourism Development Strategy to 2030" will continue to develop tourism into a spearhead economic sector. These premises create motivation for project development enterprises to accelerate progress, injecting new tourism and resort real estate supply into the market.

In particular, Decree 10/2023/ND-CP dated April 3, 2023 on removing obstacles for the issuance of pink books for condotels, officetels, etc. may reach a certain level of penetration in the near future, bringing hope to investors and developers. Thereby, helping the resort real estate market to soon catch up with the general recovery momentum of the entire real estate market.

“It is forecasted that the supply of tourism and resort real estate in 2024 will have the opportunity to improve by about 20% compared to 2023. In particular, the type of beach apartments is the highlight of the segment, because it both meets the need for ownership and can be exploited for rent, creating cash flow,” VARS commented.

According to VARS, the resort real estate market in Vietnam still has potential for development in the future, with support from increased tourism demand and interest from investors. However, for sustainable development, investors need to focus on project planning and development.

It is to focus on protecting and respecting the natural landscape. Providing a favorable environment for tourism and recreation.

At the same time, we strive to adapt to new trends, bring new experiences, and products that meet the actual needs of customers. Diversify products to meet the needs of different customers, from luxury beach villas to convenient resort apartments.

Ha Anh

Source