Although some types of resort real estate are legally entangled, many experts say this segment still has many opportunities to make a breakthrough.
The trend slowed down at the beginning of the year
After the boom period, the resort real estate market slowed down in 2019. Since the beginning of the year, this segment has very few projects. However, there are still some local hot areas with new projects of reputable developers.
According to a report of Vietnam Real Estate Brokers Association (VARS), in 2018, the total supply of condotels nationwide reached 8,507 units. By location, Khanh Hoa leads the supply with 2,231 units, accounting for 26.2% of the total supply, followed by Quang Ninh with 1,621 units, accounting for 19.1% and Da Nang with 1,211 units, accounting for 14.2%.
According to experts, the resort real estate market has many opportunities to break out by the end of 2019
However, by 2019 this segment will have almost no new projects. Especially, in Da Nang market, there is a significant decrease in condotel consumption. According to DKRA's report in 6/2019, within just 3 years from 2016 to present, Da Nang has about 9,890 condotels from 12 projects launched, the consumption reaches 75% of the supply (about 7,418 units). However, from mid-2018 to June 2019, the number of successful transactions was small, the market almost recorded no new projects.
The reason is that the legal embarrassment of the condotel, plus the land fund in big markets such as Nha Trang, Da Nang, Vung Tau, Phu Quoc... became tight and scarce.
Although the resort real estate market shows signs of slowing down for a while, many experts say that by the end of 2019 and early 2020 this segment will be "hot" again.
According to Mr. Duong Duc Hien - Sales Manager of Savills, the end of 2019 and the beginning of 2020 will be the appropriate time for real estate to break out. Factors such as market expansion in new destinations such as Phan Thiet, Phan Rang, Lam Dong, Binh Chau... Central provinces, attracting capital from abroad and completing the legal will be the opportunity for the resort real estate market to catch a new breeze.
“From the beginning of 2019, there have been many different waves in different regions. However, strong focus on areas with development potential, new areas with infrastructure connectivity. As for the areas left behind, it has been a long time without any significant changes. Right after that, the waves also subsided due to the lack of large-scale and methodical projects of prestigious investors.
However, later this year and early next year, the "big guys" will start to stir up this segment with projects that carefully consider factors such as geographical location, ability to attract foreign tourists. and more cautious with the law. Therefore, investors can feel more secure when returning to resort real estate” Mr. Hien said.
In addition, Mr. Duong Duc Hien also predicts that investors pouring into new lands will be an opportunity for other segments such as land plots, housing... in those areas with strong fluctuations. This is a good opportunity for investors in Ho Chi Minh City and Hanoi to flock to surrounding land to develop into small resort real estate clusters.
“The convalescence projects are developed and developed, which will cause the price of residential land in those village areas to receive waves from small investors seeking to buy land to formulate new accommodation service. This will create light waves for coastal residential land, residential land...
Areas such as southern Hoi An, Cua Dai bridge, central provinces... are also starting to be paid attention, especially in craft villages with lots of garden land, suitable for developing eco-tourism areas. These villages have a lot of foreign visitors, so investors will come and buy the land from the villagers to build resort real estate areas, thereby causing waves of large and small scale” Mr. Hien analyzed.
In addition, Savills Sales Director also pointed out other favorable factors for the breakthrough real estate. In particular, there are positive information as recently Ninh Thuan has officially refused to deploy individual projects. This will attract many big investors to create a boost for the resort real estate market. It is expected that in the last 6 months of the year, some projects will be eligible for construction development. In addition, attracting foreign capital inflows also opens up many development opportunities for this segment.
“According to what we noticed, recently some foreign investment funds have begun to pay attention to the Vietnamese market. Not only are they big projects, they are starting to target small projects, which is a good signal for Vietnam market when we are recognized by the world. Vietnam is being seen as an emerging market, a market recognized by countries in the world and the region, which will help us to have a flow of foreign investment. This is extremely favorable for resort real estate in the next 1-2 years. These positive signs will ensure investors' trust story, opening more development opportunities for this segment” Mr. Hien emphasized.
However, this Director also considers investors cautious about the legality, so concentrated investment and restricting channeling in small projects. Because this will risk making the market slow down, causing imbalance in the urban landscape and the lack of large-scale and methodical projects.
According to Dieu Anh