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Vietnam’s resort real estate segment forecast complex development

Vietnam’s resort real estate segment forecast complex development

Tuesday 20, 09 2022
The recovery of tourism makes the expectation of Vietnam’s resort real estate more exciting. However, this market is strongly affected by the limited capital flow into real estate.

Prices rise in contrast to lowered consumption

According to DKRA's report, Vietnam’s resort real estate also follows the gloomy trend of the real estate market when the capital for this field is more limited than before.

However, investors still launched products in August this year when product supply increased again compared to 2 months ago. Especially the condotel type.

As for condotels, after a period of controversy due to legal problems causing this type to slow down, until now, investors continue to launch goods.

Vietnam’s resort real estate

In August 2022, DKRA recorded a strong increase in condotel supply compared to the same period last year with 424 units, concentrated locally in projects in the Central region of Vietnam with 351 units, accounting for 83% of the total new supply in the whole country. Meanwhile, the North has only 16 units, and the South has 57 units.

Most of the projects had slow sales because the market demand was still quite low, reaching the rate of 29% with 123 units sold. Consumption is mainly concentrated in Binh Dinh, accounting for 62% of total consumption nationwide.

However, the highlight of the condotel segment is that the primary selling price still increased by 2% - 7% over the previous month, ranging from 38.4 to 153.7 billion VND/unit. However, this price increase comes with discount policies, incentives, interest rate support, profit commitment, etc.

For townhouses/shop house products, in August 2022, new supply was recorded 1.8 times higher than the previous month but only concentrated in 03 provinces of Binh Thuan, Phu Quoc (Kien Giang province), and Ba Ria - Vung Tau. Specifically, Binh Thuan accounts for 79% of the new supply of the whole market, with 471 units from 02 large-scale projects.

Banks tightening credit in the real estate sector also made the consumption of townhouses only 27%, although consumption in August increased by 13% compared to the previous month.

The price level, in general, remained stable compared to the previous month, ranging from 7.2 to 59.8 billion VND/unit.

The biggest influence of credit control on real estate, according to DKRA, is the resort villa segment. In addition to the increase in high lending interest rates, which strongly impacted market liquidity, the demand for this product dropped sharply and reached the lowest level since the beginning of the year.

Villa

In August 2022, the supply of resort villas decreased significantly in several projects in Vietnam's South and Central regions. The South had only 22 units, while in the Central, 97 units out of a total supply of 219 villas were opened for sale.

The amount of interest and transactions in projects show signs of slowing down. Projects developed under the model of hot mineral onsen recorded a better sales situation than the general market average. That makes the consumption rate low, only 27%, equivalent to 60 units.

However, the primary selling price increased by 2% compared to the previous month, ranging from 7.2 billion VND to 48.4 billion VND/unit.

It is forecasted that, in the last months of the year, if the bottleneck in credit control is not removed, the market supply and demand will continue to decline and will mainly focus on familiar localities such as Binh Thuan and Ba Ria. - Vung Tau.

Complex development projected

In the coming time, corporate bonds and tourism real estate projects will present many potential risks because the legal regulations are not synchronized. Therefore, the complaints, denunciations, and disputes related to corporate bonds and real estate business, especially in tourism real estate projects and commercial housing, will continue to be complicated in the coming time.

tourism

That is the information that Mr. Duong Thanh Binh, Head of the People's Volunteer Committee, Deputy Head of the Standing Delegation of the Monitoring Delegation, reported at the 15th session of the National Assembly Standing Committee meeting.

According to Mr. Binh, through working with agencies, the monitoring team predicted that the situation of complaints and denunciations in the coming time would continue to be complicated. Administrative complaints and denunciations related to land acquisitions will continue to be a hot spot.

In particular, complaints, denunciations, and disputes related to corporate bonds, real estate business in tourism real estate projects, and commercial housing will develop complicatedly since the laws related to these fields are not synchronized, potentially leading to many risks and disputes.

Mr. Binh also stated that the number of petitions and complaints sent to state agencies is four times higher than the number of complaints, nine times the number of denunciations but has yet to be resolved. Statistics and reporting results remain incomplete.

 

Source: vneconomy

Compiled by VietnamCredit

Tags: Vietnam industries, real estate industry, resort real estate, industry forecast

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