After a year of "sliding", resort real estate needs more push

Cannot improve even though the market has changed a lot

Data from the General Statistics Office, Ministry of Planning and Investment, international visitors to Vietnam in December 2023 reached nearly 1.4 million arrivals, up 11.2% over the previous month and up 93.9% over the same period last year.

In 2023, Vietnam tourism will welcome 12.6 million international visitors. This number is 3.4 times higher than in 2022, far exceeding the target of 8 million visitors.

It can be said that the Government's open policies for the tourism industry in recent times have created conditions for domestic tourism to develop, aiming to completely restore tourism activities as before Covid-19.

In particular, in 2023, Vietnam tourism also received 54 awards from the World Travel Awards, notably the 4th World's Leading Heritage Destination award. This has continued to affirm the potential and leading attraction of natural resources and the value of our country's long-standing cultural heritage in tourism development.

However, the recovery of the tourism industry associated with the development of resort real estate still faces many difficulties due to the influence of many factors such as legality, administrative procedures and capital mobilization...

Real Estate - After a year of — The resort real estate segment has yet to record many positive signals. (Illustration photo)

In the Vietnam Real Estate Market Report 2023 and Forecast 2024 of the Vietnam Association of Realtors (VARS), the fourth quarter of 2023 saw more excitement in the market due to the rumors of a number of projects, kick-off programs, and large-scale sales openings that had been absent in previous quarters.

However, the resort real estate segment is the segment that has been most severely affected, and is still in a "long slide" at present. However, there is a chance of "rebirth" thanks to Decree 10/2023/CP-ND.

Data shows that in the fourth quarter of 2023, about 913 new products were launched on the market, equivalent to the supply in the third quarter of 2023 and only 30% compared to the same period last year. The main supply is currently coastal apartment products, scattered in the North, Central and South regions such as Quang Ninh, Phu Quoc, Da Nang... The supply did not meet expectations, in which, the main reason is that some large-scale projects had to temporarily stop selling due to legal problems.

Resort real estate needs more push

Accordingly, the resort real estate segment is closely related to the tourism market. The close connection between these two fields brings great potential for resort real estate when taking advantage of the growth in tourism demand including domestic and international visitors.

Sharing at the Vietnam Real Estate Market Forum 2024, experts agreed that although the hospitality business still faces many challenges, negatively affecting the recovery of demand in some localities. However, many solutions to retain and attract tourists have been applied along with positive signals about demand in the last months of the year and new visa policies are expected to be the growth driver for resort real estate in 2024.

Ms. Pham Thi Mien, Deputy Head of Market Research and Investment Promotion Consulting Department of VARS, commented that in 2024, the support from the recovery and development opportunities of the tourism industry, including the visa relaxation policy continuing to take effect along with the 2% tax reduction policy for goods and services and many support promotion programs, organized tourism exhibitions will be the driving force for investors to speed up progress, "pump" supply into the market, the supply of resort real estate will have the opportunity to improve by about 20% compared to 2023.

Besides, the type of beach apartment will be the highlight of the segment because it both meets the need for ownership and can be exploited for rent, creating cash flow.

In particular, Decree No. 10/2023/ND-CP dated April 3, 2023, which eases the issuance of pink books for types of real estate such as resort apartments, offices combined with resorts, etc., will have a certain penetration in the coming time, creating hope for investors and developers. Supporting the breakthrough of resort real estate.

Mr. Nguyen Chi Thanh, Permanent Vice President of VARS, 2024 is still likely to face many difficulties and challenges for the Vietnamese economy in general and the real estate market in particular.

Regarding resort real estate, the public investment momentum and planning of nearly 40 provinces and cities have been approved by the Government, and are expected to continue to be approved in 63 provinces and cities in 2024, which will remove difficulties for many projects stuck in this area.

“However, it is still necessary to pay special attention to and study mechanisms and policies for the synchronous development of related industries and fields such as tourism and services to ensure that the real estate market has a solid foundation and develops deeply in terms of quality. This is an important key to regaining the trust of customers/investors in the resort real estate segment,” said Mr. Nguyen Chi Thanh, Permanent Vice President of VARS.

NAM ANH

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