Condotel massively cut losses
In Ha Long (Quang Ninh), there is a lot of information about selling condotel apartments at a loss of 500 - 600 million VND in some projects such as A La Carte Ha Long Bay, The Sapphire Residence, FLC Grand Hotel Ha Long,... For example, Studio apartment, area 45m2 at A La Carte Ha Long Bay project is being sold at a loss of 500 million VND. The selling price is currently at 2.45 billion VND, equivalent to a selling price of 54.44 million VND/m2.
In Nha Trang, condotels on Pham Van Dong, Nguyen Thi Minh Khai, Nguyen Tat Thanh, etc. are being sold at a common loss of 300-500 million VND/unit. Even a condotel apartment with an area of 65m2 at the Scenia Bay Nha Trang project is for sale to cut a loss of up to 800 million VND. The current asking price of the apartment is 2.4 billion VND, equivalent to 36.92 million VND/m2.
The situation of selling condotel apartments at a loss has continuously appeared in recent years when the resort real estate market has been quiet for a long time and liquidity is difficult.
Mr. Duc Lam, an investor who is currently the owner of 2 codotel apartments in Nha Trang, shared: "I have been selling one apartment since last year. Because I needed money to turn around capital, I accepted to sell it at a loss with the hope of selling it at a loss." Quickly collect money. I continuously posted ads for sale, even asked brokers, but there were still no buyers."
Mr. Lam said that the reason investors are currently losing confidence in this type is due to unfavorable developments in the market such as legal bottlenecks, "broken" profit commitments of some projects, ... makes investors no longer interested in this segment, many investors even accept to cut losses, sharply reduce selling prices, looking for ways to "exit goods".
Many barriers prevent the market from recovering
The notable data just released by DKRA (DKRA Group Joint Stock Company) is that the consumption of condotel apartments in the quarter reached 2,062 units, a number that increased dramatically, 6.8 times higher than the same period last year. However, transactions were only locally concentrated in 1 new project opened for sale in the quarter, most of the old projects had slow sales or closed shopping carts, and no transactions were recorded.
DKRA commented that legal issues, exploitation efficiency, investor confidence, etc. are still barriers that prevent the market from recovering in the short term.
Another reason why the condotel segment has not been able to recover, according to Mr. Mauro Gasparotti, Director of Savills Hotels, is because many products do not suit the market's requirements. Some investors hastily entered the market, leading to a gap between supply and demand in some destinations.
Mr. Mauro Gasparotti analyzed that in Vietnam condotels are ineffective due to low project quality, duplicate models, and lack of sustainable orientation. The expert gave an example in Phu Quoc, this model is showing ineffectiveness when there is a lot of supply, but most of it has not been put into business.
“We also observed a situation of focusing on quantity over quality in some projects. The lack of consideration of factors such as market characteristics, industry trends... has created many potential risks when projects are developed but do not meet the experience needs of tourists, especially now. As foreign tourism becomes more and more popular, the competition becomes fiercer," said Mr. Mauro Gasparotti.
