Resort real estate plunges
Supply and consumption of condotels and resort villas fell by double digits in Q3 as the ‘ghost month’ held investors back.
A report by real estate firm DKRA Vietnam said just three seaside villa projects were released into the market during the third quarter of this year, supplying 86 new villas, down 95 percent compared to the previous quarter.
Of these, 58 units were bought, down 96 percent over the second quarter. Primary supply and consumption was mainly concentrated in central Binh Thuan Province and and southern Ba Ria–Vung Tau Province.
In the resort condotel segment, six projects were released, supplying the market with 2,605 apartments, down 32 percent over the previous quarter.
The consumption rate in this segment was 86 percent, around 1,380 units, down 30 percent over the second quarter. Primary supply and consumption was concentrated mainly in the central provinces of Ninh Thuan and Khanh Hoa and Da Nang City, a major tourist destination in central Vietnam.
The DKRA report said the slowdown in resort real estate was a seasonal effect. Sales fell sharply in the third quarter because August coincides with the seventh lunar month, traditionally called the "ghost month," during which locals avoid buying new things or engaging in important transactions to avoid bad luck.
According to the report, supply and demand of resort real estate would pick up again in the final quarter, with more growth expected in the sea villa segment as investors are increasingly showing interest in resort complexes with townhouses and beach villas, and are booking more units there.