Recently, the resort and tourism real estate segment has been heavily affected by the pandemic, with a serious decline in international visitors. In addition, legal issues, regulations on project construction, granting of pink books... are still unclear, causing many ongoing projects to fall into a state of being shelved.
However, at the end of 2023, businesses investing in resort real estate in the South are "racing" to offer many products to the market, attracting investors to bring cash flow back to sea view apartments, villages, villas...
According to records, from the beginning of 2023 to the end of the third quarter of 2023, according to DKRA Vietnam's data, the resort real estate segment is said to be plummeting in terms of new supply and consumption.
Accordingly, in August 2023, only 1 project opened the next phase of resort villas, supplying 27 units to the market, an 88% decrease in new supply compared to the same period in 2022.
Resort real estate is still attracting investors. (Photo: LN).
The volume of sales transactions was only 15% compared to the same period last year. Most of the transactions in the month focused on products priced under VND10 billion/unit. Primary selling prices remained unchanged compared to the previous month.
Another segment, resort townhouses/shophouses, also recorded a record decrease in new supply, approximately 99% compared to the same period and concentrated locally in the Southern region. Accordingly, in August 2023, only 11 units were opened for sale from the next phase of a project.
Market demand is very low, with consumption limited to only 1% compared to the same period in 2022. The market gloom combined with the tourism recovery rate not meeting expectations has resulted in quite low market liquidity.
However, starting in the fourth quarter of 2023, this real estate segment had a very clear change when the State Bank announced a reduction in interest rates, customers were more interested in resort apartments, causing a series of businesses developing apartments, villas, townhouses... to return to the race.
Resort villas and coastal apartments are the future investors are looking for. (Photo: LN).
Specifically, many businesses have returned to the market to offer resort real estate segments, tourist apartments, etc. There are a series of projects launched on the market recently such as: The 5Way Phu Quoc, Meypearl Harmony Phu Quoc, Regal Legend Quang Binh, The Ocean Resort Quy Nhon, Merry Land Quy Nhon Binh Dinh; Nova World, Thanh Long Bay (Phan Thiet, Binh Thuan);
According to the Vietnam Association of Realtors (VARS), newly opened resort real estate projects have attracted attention, recording impressive booking numbers with attractive sales policies.
At the end of November and beginning of December 2023, a resort project of a reputable investor in Phu Quoc recorded a number of bookings many times higher than the number of sales.
Brokers offering this project said the project's booking rate is currently up to 33,000 products, considered a pioneer in "breaking the ice" for resort real estate.
Focus resources, build real products
Regarding the resort real estate segment at the end of 2023, it still attracts investors, creating a premise for sustainable development in 2024.
A representative of Novaland Group said, “Currently, as the financial market gradually recovers, banks are starting to reduce lending rates and disburse funds to real estate projects. These factors continue to increase the driving force for the real estate market to recover faster, safer and more sustainably.
In recent times, the vitality of attractive economic and tourist metropolises is the utilities that are gradually being put into operation, increasing services for tourists, and promoting the existing potential of the projects.
Mr. Nguyen Van Dinh, Chairman of VARS, commented that the supply of resort real estate is improving as a series of large-scale projects begin to be sold. This is the "key" to help resort products be consumed quickly, customers agree to pay thanks to preferential policies of quick payment discounts, interest rate support, principal grace period, leaseback commitment... of the investor.
VARS also forecasts that in 2024, the real estate market will continue its recovery trend with clearly improved transaction results.
A project is focusing on building and developing infrastructure in the coastal area of Binh Thuan province. (Photo: LN).
Speaking with Nguoi Dua Tin , Mr. Luong Si Khoa, Deputy General Director of Nam Group Corporation said: “The resort real estate segment will face many difficulties in 2023, typically credit capital, project legal procedures, customers affected by the economy... however, investors are still making great efforts to work with customers to overcome the difficult period.
Currently, investors have many policies to support customers in the resort real estate segment such as extending payment schedules and supporting interest rate grace periods. This makes many investors still believe in resort real estate.
“The resort real estate segment brings many benefits to investors, not only has great value but also can be exploited in the long term economy such as leasing, business... although facing many difficulties due to the general impact of the market, this segment is still turning around,” said Mr. Khoa.
According to Mr. Khoa, project investors now have a new strategy. In 2024, in addition to developing sales, businesses will focus more on construction and completion of infrastructure and project utilities to hand over to investors.
The project's progress is currently being focused on by investors to quickly build in order to attract visitors and stimulate tourism potential in the area. (Photo: LN).
“When a project is ahead of schedule, handed over to buyers and put into operation, it will create economic value and surplus value, which will make the real estate market more vibrant. This is a practical proof and the direction that businesses are aiming for,” said Mr. Khoa.
“We expect that in 2024, the real estate market in general and the resort real estate segment in particular will return to the race, develop more brilliantly and bring profits to investors,” Mr. Khoa shared.
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