Resort and second-home segments move with times
Resort and second-home segments move with times
With the flexibility to adjust business strategies and product types of investors, as well as the expectation that tourism will recover, resort and second home real estate promises to come back stronger.
The resort and second home real estate segments have begun to move again after two years of downturn. Projects such as Sonasea Van Don Harbor City, Sun Marina Town Halong, Novalword Phan Thiet, and A La Carte Halong have been offered for sale again.
According to DKRA Vietnam, the market could recover in most segments like townhouses and villas, second homes, and resort real estate. However, the latter only recorded a limited supply in the central provinces of Danang, Quang Nam, and Thua Thien-Hue.
The supply of resort villas last year was at more than 170 units, and only 24 per cent were purchased. Condotels, meanwhile, did not record any new projects for sale.
DKRA Vietnam forecasts that the new supply in 2022 may increase. In which, Danang could be the market that continues to lead in most areas, while Thua Thien-Hue continues to have a limited supply.
Both developers and investors are looking towards the second home segment of the central provinces. Converging many similar conditions in terms of geography, tourism potential, transport infrastructure, and socioeconomic factors, Thua Thien-Hue, Danang, and Quang Nam can combine values and create new development dynamics for the whole region.
Specifically, Danang is positioned as the destination for luxury and resort real estate. With this orientation, it is forecast that the real estate market in Danang will continue to attract many large investors to deploy high-end and luxury projects.
Danang and Quang Nam have both embarked on a project to dredge the Co Co River and put into use the transportation system connecting urban areas, coastal resorts, and Hoi An ancient town. This is an important waterway and tourist route connecting the locations, stimulating the development of the whole central region.
In the whole country, high-rise resort real estate with term ownership is still dominating the supply of nearly 7,000 units, equivalent to 58 per cent of the total 12,000 apartments currently available.
Condotels are primarily concentrated in the central region, where many provinces with long coastlines and strategic tourism development are located.
According to various experts, the resort real estate segment will see a strong comeback in 2022 because investors have adjusted their business strategies and product types to meet the changing demand of customers.
One of the bright spots of the resort real estate market in 2021 was a new product segment – long-term resort property.
Thanks to the combination of factors, both a second house with a red book, full legality, and a resort element, these properties have perfectly met the requirements of customers and investors, both for living and business.
The experts added that the liquidity of this product is very high. While condotel apartments only have an absorption rate of about 20-40 per cent, long-term resort apartments record around 60 per cent. Many projects sold out on the first day of sale.
Besides this, the market can also enjoy the positive benefits of the reopening of the tourism market in mid-March, stimulating international visitors. Therefore, resort real estate will likely be one of the most important and noticeable segments in 2022.
