The Ministry of Construction’s reports for the eight months of 2023 confirm the recovery of the tourism real estate segment. Over this period, developers completed 10 projects, thanks to which more than 4,000 residential properties have become available to buyers.
But Tran Ha, an investor of a project with almost 200 condotel units in Da Nang, notes that even the preferential discount system did not cause a boom in demand and no more than 20 properties were sold this year. Low liquidity causes a reduction in the construction budget and cuts in the advertising and brokerage sectors. This year, very few transactions with resort properties whose value exceeds $400,000 were registered.
The total condotel inventory has grown to more than 42,000 units as of July 2023, according to a report from consultancy DKRA. Demand decreased by 78% compared to the same period last year. Beachfront property inventory increased to approximately 30,000 units.
Vo Hong Thang, deputy director of research and development at DKRA Group, noted that the real estate market will recover primarily for affordable residential properties. The state’s all-around support for economic growth remains a precondition for this. To purchase resort real estate, local citizens must have a free budget. Therefore, overseas investors can be a larger focus for now.
Thang added that one should not expect quick market liquidity. It is unlikely that changes will occur soon. Policies supporting interest rates and extending payment terms for those planning to buy real estate will help change the situation. As the tourist flow increases, which has not yet fully recovered from the pandemic, the situation will improve.