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Vietnam’s resort real estate: Recovery chances with tourism reopening

Vietnam’s resort real estate: Recovery chances with tourism reopening

Tuesday 22, 03 2022
Vietnam’s resort real estate is having chances for recovery with tourism reopening earlier in 2022, more so with international tourism officially opening again on March 15, 2022.

Positive recovery signals

Since the Government issued Resolution 128 stipulating a safe adaption and a flexibly and effective control of the COVID-19 pandemic, many business activities have quickly resumed operations. Of which, tourism has had a flourish from the beginning of 2022. During the Lunar New Year holiday, there were 6.1 million domestic tourists and estimated revenue of more than 25 trillion VND.

According to a recent report by DKRA Vietnam, the opening of the economy and the recovery of the tourism industry are factors affecting customer psychology, increasing resort real estate market demand significantly in recent times. In the past 2 months, resort real estate recorded a sharp increase in some segments, such as resort villas and resort shophouse townhouses.

DKRA Vietnam

For resort villas, 5 projects were launched for sale, providing 354 products to the market, that supply is equivalent to the same period in 2021. The consumption rate of 47% recorded 167 units sold, increased twice over the same period.

According to the Vietnam Real Estate Brokers Association, seizing the opportunity to recover, right after the Lunar New Year, many resort real estate projects were consecutively announced investment policies or introduced and officially opened for sale on the market. That also shows investors' confidence in the growth of the resort real estate segment is very large.

Assessing the resort real estate market, Dr. Can Van Luc - an economist, said that resort real estate always has two driving forces for recovery.

Firstly, the market supply and demand are more reasonable and planned out thanks to the regulation and planning of ministries and branches.

Secondly, tourism is gradually asserting its role as a spearhead economic sector with a possible contribution of up to 12-14% of GDP by 2025.

Notably, many tourist complexes of various sizes and functions started appearing in the resort real estate market instead of small and solitary projects. High-quality tourism megacities attracting investors is a new direction and restructuring of the resort real estate segment.

tourist complexes

According to Assoc. Prof. Dr. Dinh Trong Thinh - economic expert, COVID-19 is under control, and people are also gradually getting used to living with the pandemic. Thus, tourism will be a priority industry to push for recovery with support policies and attractive incentive programs to stimulate demand. Resort real estate also gradually heats up as a consequence.

Assoc. Prof. Dr. Dinh Trong Thinh said that with international flights reopened, international tourism would soon be stimulated. That would be a condition to support the growth and recovery of the resort real estate segment in the second quarter of 2022

Nguyen Van Dinh - Vice Chairman of the Vietnam Real Estate Association, said that many provinces, after a period of stagnation due to the COVID-19, are eager to open their businesses and serve tourists. With the boost from the economic stimulus package, resort real estate will bounce back strongly after years of pandemic hibernation.

Resort real estate in projects has not increased too much compared to garden land and coastal land in the past 2 years. That is the reason for this segment to attract investors back.

Facing challenges

Despite many positive signals, the tourism-resort real estate segment still stands before many challenges and difficulties. Assoc. Dr. Nguyen Quang Tuyen - Vice Chairman of the Council of Hanoi Law University, stated that identifying new real estate such as tourism real estate has shortcomings. Therefore, many condotel investors have legal problems. When the regulations on land use and certification for tourist real estate are not clear, the provinces become confused, as are the companies.

In addition, the issue of digital transformation, the legal time of digital transformation to ensure the confidentiality of customer information, is related to other laws. Those are also a matter of concern.

State management

Experts said that it is necessary to supplement regulations for State management, in the Law on Real Estate Business 2014 to closely integrate investment and business activities in real estate, tourism real estate with the issue of insurance. environmental protection.

In addition, it is also necessary to amend and supplement the Law on Tourism 2014 to ensure consistency, compatibility, and synchronization, contributing to creating a legal framework for smooth tourism real estate investment and business activities.

 

Compiled by VietnamCredit

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