Resort real estate has not escaped the "dark zone"

In the second quarter of 2024, the real estate market generally recorded many positive signals in the apartment and townhouse segments... However, the resort segment continued to decline.

DKRA Group's report on the residential real estate market in Ho Chi Minh City and surrounding areas shows that in the second quarter of 2024, the real estate market recorded a significant improvement in primary supply and consumption in key segments. Most transactions were concentrated in projects with completed infrastructure and legal documents, implemented by reputable investors in the market... Many preferential policies were widely applied to increase liquidity during this period.

However, the resort real estate sector has not yet escaped the “dark zone”. Specifically, in the resort villa segment, primary supply decreased by 5% compared to the same period. In addition, new supply also continuously decreased, accounting for only about 6% of the total supply nationwide. Demand is also low, with consumption decreasing by 69% compared to the same period.

The resort real estate market has not yet escaped the "dark zone" even though the tourism industry has seen many improvements.

According to DKRA Group, the above consumption is the lowest level in the past decade. Moreover, the primary selling price continues to trend sideways. The secondary market recorded an average price decrease of 15% - 20% compared to the contract price, locally there are projects with a deep decrease of 40% - 50% but still facing difficulties in liquidity.

The resort townhouse/shophouse segment is not doing any better as supply continues to decline. More than 97% of primary supply in the quarter came from inventory of old projects. Primary selling prices did not fluctuate much and continued to trend sideways.

“The market continues to face many difficulties in liquidity and price increase potential as investor confidence and the recovery of this segment are still very low,” said Mr. Vo Hong Thang, Director of Consulting Services and Project Development, DKRA Group.

Next is the condotel segment, primary supply in the second quarter of 2024 increased by 51% over the same period. Most of the supply comes from inventory of old projects (accounting for more than 66%).

Notably, new supply also 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).

However, transactions are mainly concentrated in one project in Khanh Hoa, while most of the old projects have slow sales or closed the product basket without recording any transactions. Transactions are mainly concentrated in large-scale projects with selling prices under 3 billion VND/unit.

Forecasting supply in the third quarter of 2024, a representative of DKRA Group said that condotel supply will decrease significantly compared to the previous quarter. Supply is mainly concentrated in Da Nang, Khanh Hoa and Quang Ninh.

Meanwhile, the supply of resort villas and resort townhouses/shophouses did not fluctuate much compared to the second quarter. Overall market demand continued to remain low, and the downward trend is expected to last until the end of 2024. The primary price level remained stable and there are unlikely to be any clear fluctuations in the short term.

In the long term, market participants believe that the 2023 Law on Real Estate Business has adjusted and supplemented new regulations related to the resort real estate market. These include regulating capital sources, assessing licenses, and clearly classifying types of housing such as condotels and officetels in Decree No. 10/2023/ND-CP of the Government.

At the same time, the Law is also strict on real estate business conditions, the capacity of investors, as well as investment issues of Vietnamese people abroad. This helps to minimize problems arising when projects are implemented. Therefore, the supply of resort real estate products is expected to improve by about 20% compared to 2023 when the Law on Real Estate Business 2023 comes into effect.

Source: https://baodautu.vn/batdongsan/bat-dong-san-nghi-duong-chua-thoat-khoi-vung-toi-d220145.html