Tourism real estate like a 'turtle racing'

Both supply and transactions increased

According to the Vietnam Association of Realtors (VARS), in 2023, the whole country had only about 3,165 new tourism and resort real estate products , down more than 80% compared to the year and only 726 successful transactions. However, in 2024, the supply improved when the whole market recorded about 4,400 new products for sale, up 40% compared to 2023. Liquidity also recorded positive results when in 2024, the whole market recorded about 2,500 transactions. The absorption rate on new supply reached more than 50%.

The positive recovery of the tourism industry is also considered a solid foundation, an important launching pad to promote the recovery and development of the tourism and resort real estate segment. Because tourism needs an infrastructure system from transportation to quality accommodation to ensure and maintain its attractiveness, not only to retain tourists but also to urge them to return.

Tourism real estate is likened to a "turtle racing across the track", recovering slowly but surely.

PHOTO: DINH SON

Accordingly, in 2024, the number of international tourists to Vietnam is estimated to reach 17.5 million, an increase of 38.9% over the same period in 2023. Meanwhile, domestic tourists are estimated to reach 110 million, an increase of 1.6% over the same period in 2023. Total revenue from tourists is estimated to reach about 840 trillion VND, an increase of 23.8% over the same period in 2023.

2024 is also the year that will witness the confident return of a few large-scale tourism and resort real estate projects. Notable among them is the Libera Nha Trang project by investor KDI Holdings Group, accompanied by the Masterise Homes brand.

For the first time, after a long period of silence, a resort real estate project has "covered" the market. VARS believes that this demonstrates a huge effort by the investor. Because the pioneering step is always a difficult step. With the result of contributing nearly 80% of the transaction volume of the resort real estate segment of the entire market in 2024, it has partly affirmed the success of the project.

Need legal standardization

According to Ms. Pham Thi Mien, Deputy Director of the Vietnam Real Estate Market Research and Evaluation Institute, the supply of tourism and resort real estate in 2025 will improve significantly, estimated to increase by about 80% compared to 2024. The supply is mainly serviced apartments in key tourist areas, expected to be released when investors complete adjustments to selling prices and policies. Some areas still have excess supply of high-end resorts that have not been put into operation due to incomplete infrastructure and utilities.

Demand for resort real estate continues to improve as the legal corridor is completed in the context of positive recovery of tourism and retail. Demand is still directed towards long-term resort villas or tourist apartments in projects with clear operating plans in provinces and cities with developed tourism.

Primary prices remain high but are more appropriately adjusted. Resort villa prices remain flat in some destinations with excess supply of high-end products. Meanwhile, prices of long-term resort villas in key tourist areas continue to grow by about 15% per year thanks to sustainable rental cash flow. Transactions continue to improve. Liquidity is concentrated in long-term resort villas or tourist apartments with suitable investment rates in areas with good infrastructure and a stable number of international visitors.

A clear legal corridor will be the basis for sustainable recovery of tourism real estate.

PHOTO: DINH SON

Mr. Nguyen Van Dinh, Chairman of VARS, commented that in the coming time, along with the strong recovery results of the tourism industry, more open opportunities from the legal corridor, resort real estate will also show results worthy of the efforts over the past time. However, the following factors need to be ensured for this segment to recover slowly but surely.

First is to ensure legal compliance. The new legal corridor has become increasingly stricter with investment and development of real estate projects. The new game is only for qualified investors with good capacity and financial health. With the resort real estate segment, which is already sensitive in terms of law, it is even more necessary to be more standardized. Only then can we gain the trust of customers/investors.

Secondly, it is necessary to identify that the product is important, and that the exploitation and operation activities are key. Enterprises need to invest properly in product research and development to ensure the introduction of new product lines and continuous improvement to meet the increasing needs of customers/investors. These real estate products also need to be put into a professional and smooth exploitation and operation process to ensure efficiency, only then will they be sustainable.

And finally, investment in developing resort real estate cannot be separated from the story of developing transport infrastructure and the tourism and service industry. Because this is considered the main support, a decisive factor in the effectiveness of resort real estate.

Source: https://thanhnien.vn/bat-dong-san-du-lich-nhu-chu-rua-vuot-duong-dua-185250106163945685.htm