DKRA Consulting's recent real estate market report shows a gray picture of the resort real estate market in 2024.
For the condotel type, in 2024, 7,795 primary apartments were offered for sale, an increase of 31% over the same period last year, mostly from the inventory of old projects (accounting for 62%). In addition, new supply also recorded significant growth, increasing by 89% over the same period, but only locally concentrated in 1 project in Khanh Hoa. The primary price level increased slightly by 5% over the same period and continued to remain high.
Of the 7,795 primary apartments, 3,088 were consumed, accounting for 40%. This level has increased by 2.6 times compared to 2023. However, the transaction only focused locally on new projects opened for sale during the year. On the contrary, most of the old projects have slow sales or closed product baskets without recording any transactions.
According to DKRA Consulting, condotel's liquidity is generally still low. Transactions are mainly concentrated in projects with completed legal documents and selling prices under VND3 billion/unit.
For the resort villa type, according to DKRA Consulting, primary supply continues to decline with a decrease of about 5% compared to the same period last year. Most of the supply is concentrated in the Southern and Central regions, accounting for 75% of the total supply of the country. A series of projects have stopped implementation and closed their product baskets due to violations, causing inventories to increase sharply.
In terms of consumption, in 2024, 2,415 resort villas were launched on the market, but only 293 units were consumed, accounting for 12%. Transactions are mainly concentrated in projects with a selling price of less than VND10 billion/unit, with complete legal documents and developed by investors with strong financial capacity.
Although many sales policies have been applied such as profit commitments/sharing, interest support, principal grace period, express payment incentives, etc. to increase liquidity, they have not achieved the expected results.
The demand is even "ugher" in the type of townhouses and resort shophouses. With 3,666 apartments on the market in 2024, only 210 apartments were absorbed, accounting for 6%.
Experts from this market research unit assessed that although the condotel market recorded growth last year, this growth was only localized in some areas, not reflecting the overall market.
In the short and medium term, the resort real estate market is predicted by experts to have many difficulties to overcome. It is very difficult for resort real estate to return to the "golden" period of 2016-2018.
There was a time when investors expected that tourism would develop strongly, while resort real estate would also develop in parallel. However, it can be seen that the resort real estate market is currently still gloomy with very low liquidity.
Dr. Nguyen Duy Phuong, Investment Director of DG Capital, said that to keep the resort real estate market vibrant, it still needs a few more years. The major barrier to this segment is the story of investment performance and abundant supply. After many years of rapid growth, the selling price and supply of resort real estate are quite large, the price is also high, but commercial exploitation has not been as expected.
Investors are still waiting for a complete legal framework and many important infrastructure projects are gradually being completed, which are positive factors that will create investment potential for the Vietnamese real estate and resort market in the coming time, said Dr. Phuong.
