According to the real estate market report of DKRA Group, in July and August, the resort real estate segment did not have many significant changes. In the resort villa segment, there was only 1 new project opened for sale, providing the market with 40 units, down 88% compared to the same period. New supply continued to decrease from the end of the second quarter of 2022 until now. Many projects continuously postponed the sales implementation time due to the amount of deposits not as expected, causing a sharp decrease in supply - only equivalent to 12% compared to the same period.
In addition to the decrease in supply, demand is also modest. In the difficult market context, the relatively high offering price and cautious investor sentiment have caused liquidity to stagnate. Primary selling prices have not fluctuated much compared to June 2023. Many investors continue to apply interest rate support programs, quick discount incentives of up to 40-50%... to stimulate buyers.
Mr. Quang (a real estate broker for resort products in Ba Ria - Vung Tau) said: "In order to stimulate market demand, at the project being distributed by our company, the investor has launched many incentive programs, quick payment discounts, principal grace period, interest rate support... Thanks to these policies, many customers are interested in learning about the project, but very few customers are willing to pay to buy. Currently, the market is still in a state of stagnation".
According to experts, legal factors, interest rates, and the slow recovery of the tourism industry are also the reasons why the resort real estate market continues to be gloomy. When the market declines, high-value real estate products are more difficult to trade. This situation is happening with resort villas, when the consumption in August was only 15% compared to the same period, although many investors continue to apply interest rate support programs and quick discount incentives of up to 40 - 50%. Some transactions in August focused mainly on products with relatively soft prices, under 10 billion VND/unit.
Mr. Vo Hong Thang - Deputy Director of R&D DKRA Group said that in the past 2 months, for resort townhouses, there were 2 projects in the next phase, supplying 95 units to the market. Although the supply has changed significantly, the consumption volume was only 1 unit. Meanwhile, condotels seemed to recover better when in July 2023, 3 projects opened for sale, supplying 405 units to the market, of which only 113 units were consumed. However, the transaction volume was only concentrated locally in 1 project, while other projects were still "thirsty" for liquidity.
“The supply of condotels in the past two months has decreased by more than 77% compared to the same period last year. The macro-economic context is facing many challenges, tourism has not recovered as expected, these are the factors that make the transaction situation less positive. It is forecasted that residential real estate will recover first because this is an essential product, along with economic growth returning. After accumulating, customers will think of resort real estate, which is considered a second home,” said Mr. Thang.
Assessing the market situation in the coming months, Mr. Le Hoang Chau - Chairman of the Ho Chi Minh City Real Estate Association said that although the supply and demand of resort real estate has recovered, it is not significant. This shows that the difficulties for investors in this field are still many, when the cash flow from sales is not much, while the inventory of products is increasing.
"When the real estate market is sluggish, the resort real estate segment is often the most heavily affected segment, because in times of difficulty, customers will cut back heavily on investments with large asset values but are not practical. Therefore, in addition to waiting for the revival of the entire market, investors need to introduce sales policies with suitable prices, flexible payments, extended progress, and good interest rate support to increase demand stimulation," Mr. Chau analyzed.
Source
Comment (0)