Slow recovery, should we invest?

While bank savings interest rates are falling, investors with available money are still struggling to find a more profitable investment channel in the future. Is resort real estate still a good investment channel?

Sharing with PV. VietNamNet, Mr. Le Dinh Chung, General Director of SGO Homes Real Estate Investment and Development JSC, assessed that condotels, resort villas, officetels... being granted "red books" will make it easier for customers to buy and sell. They will have the opportunity to borrow money from banks when investing.

However, resort real estate will be the segment with the fastest recovery rate after other segments in the market.

“In 2024-2025, the market will still focus on residential real estate, industrial parks, offices... Meanwhile, resort real estate located in large urban areas, with long-term ownership, can be used for living or business is also recording signs of feasible transactions. However, for the entire resort real estate market to recover, it will take until 2026.

Big cities like Quang Ninh, Da Nang, Nha Trang will be the markets with the earliest chance of recovery as these places have a long history of tourism development, not new markets. As for areas like Quy Nhon, Binh Thuan, Ninh Thuan... it will take more time," Mr. Chung commented.

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Should I invest in resort real estate at this time?

Therefore, Mr. Chung believes that at this stage, if you have money, you can still invest in resort real estate when that product meets the needs of living or renting, located in the center of a tourist area.

However, when investing, it is necessary to choose a product that meets the standards for operation.

Depending on the area, the price reduction is different, but Mr. Chung said that according to general statistics of the resort real estate market, the "loss reduction" level is fluctuating from 30-40%; in some areas that are starting to recover, the loss reduction level is only 10-20%.

Therefore, when researching investments, investors need to choose carefully to find products with good legal status and the most reasonable price.

According to Mr. Nguyen Chi Thanh, Vice President of the Vietnam Real Estate Brokers Association, resort real estate has value and increases over time. Besides full legal status, good quality and reasonable price, resort real estate products still have opportunities this year.

“Resort real estate products with long-term ownership have an advantage over those with certificates but limited ownership. Projects with systematic investment and quality will be better exploited, and potential investors who adjust the selling price will certainly attract investment in the future,” said Mr. Thanh.

Secondary market discount 50%

The latest data from the Vietnam Association of Realtors (VARS) shows that in 2023, the country will receive about 3,165 new tourism and resort real estate products, down more than 80% compared to 2022.

The supply mainly comes from the Central region with more than 1,200 products, equivalent to about 38% of the total market supply. In the first half of 2023, investors continuously postponed and moved the sales implementation time because the characteristics of this segment are high value, mainly serving investment purposes, and very difficult to liquidate in the context of a difficult market.

However, in the third quarter of 2023, the supply of tourism and resort real estate improved from condotel projects, mainly in the Central and Southern regions, with prices around VND50 million/m2. In the fourth quarter of 2023 alone, about 913 new products were launched on the market, equivalent to the supply in the third quarter, equal to 30% compared to the same period last year.

The entire market recorded 726 successful transactions of tourism and resort real estate products in 2023, this figure is only 6.5% of 2022.

Notably, according to VARS, in the secondary market, prices have dropped by 50% but liquidity is still difficult, especially for villas and resort shophouses with high values ​​of over 10 billion VND.

With the legal "unleashing", including the granting of pink books for types such as condotels, resort villas, officetels... according to Decree No. 10/2023/ND-CP amending and supplementing a number of articles of the decrees guiding the implementation of the Land Law, effective from May 20, 2023, many investors expect that resort real estate will soon recover.

The Ministry of Natural Resources and Environment requests localities to review and direct the organization of the issuance of certificates for Condotels, tourist villas, officetels... in accordance with regulations.