Condotel, beachfront villa market slump
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Resort real estate supply and sales fell to a five-year low last year, according to real estate consulting company DKRA Vietnam.
Supply of villas fell by 79 percent to 541, and only 239 were sold, an 88 percent decline, it said.
There were only three new condotel projects with a total of 525 units last year, a 95 percent fall. Sales fell by 96 percent.
The leading condotel markets like Khanh Hoa, Da Nang, Phu Quoc did not have any new projects.
Leisure travel fell into the severest crisis in decades. The market is not expected to make a revival in 2021.
According to some experts, the situation in the resort real estate market in 2020 was partly caused by the changing investor sentiment due to the Covid-19 pandemic.
However, even before the pandemic, the level of investor interest in resort real estate remained low because of the incomplete legal status for these types of assets and the dispute that broke out over reneged promises of regular returns on investment.
Questions & Answers
Q.What specifically caused investor interest in resort real estate to be low even before the pandemic?
What specifically caused investor interest in resort real estate to be low even before the pandemic?
Investor interest was low due to the incomplete legal status for these asset types. Also, a dispute broke out over broken promises of regular returns on investment, which also contributed to the decline.
Q.Which specific condotel markets did not see any new projects last year?
Which specific condotel markets did not see any new projects last year?
Leading condotel markets such as Khanh Hoa, Da Nang, and Phu Quoc did not introduce any new projects last year. This indicates a significant downturn in these key areas.
Q.What was the total number of new condotel units launched last year, and how does this compare to previous years?
What was the total number of new condotel units launched last year, and how does this compare to previous years?
There were only 525 new condotel units launched last year across three projects. This figure represents a 95 percent fall in supply compared to the previous period, indicating a substantial decline.
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