In 2024, support from the opportunity to recover and develop the tourism industry will be the driving force for investors to speed up progress and ‘pump’ more resort real estate supply into the market…
Although the real estate market has seen many positive changes, not all segments have recorded positive signals.
‘LONG SLIDES’
According to a report by the Vietnam Association of Real Estate Brokers (Vars), in the fourth quarter of 2023, the market has increased in bustle due to the (expected) rumors of a number of projects, kick off programs, and open sales. large scale which was absent from previous quarters. But with the resort real estate segment, up to now, it has not yet fallen into a ‘long slide’.
Last quarter’s data showed that only 913 new products were introduced to the market, equivalent to the supply of the third quarter of 2023 and 30% compared to the same period last year. The main supply is beach apartment products, scattered throughout the North, Central and South regions such as Quang Ninh, Phu Quoc, Da Nang… However, in 2023, the whole country will welcome about 3,165 real estate products. New tourism and resort tourism has decreased by more than 80% compared to 2022.
In addition to slow supply improvement, the whole market recorded 726 tourism and resort real estate products successfully traded during the year, down 90% compared to 2022. The majority of resort real estate is still ‘immovable’. over the past time, even though the selling price decreased by 50% on the secondary market. Especially villas and resort shophouse products with high value of over 10 billion VND.
According to Vars, in fact, data from the General Statistics Office shows that international visitors to Vietnam in December 2023 reached nearly 1.4 million, an increase of 11.2% over the previous month, and an increase of 93.9%. compared to the same period last year. For the whole year of 2023, Vietnamese tourism is estimated to welcome 12.6 million international visitors, this number is 3.4 times higher than in 2022, far exceeding the target of 8 million visitors. It can be said that the Government’s open policies towards the tourism industry in recent times have created conditions to help domestic tourism develop, towards the goal of completely recovering tourism activities.
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Especially in 2023, Vietnamese tourism will also receive 54 awards from the World Travel Awards, notably the World’s Leading Heritage Destination award for the 4th time. This further affirms its potential, attraction of natural resources and the value of our country’s long-standing cultural heritage for tourism development. However, Vars assessed that resort real estate has not yet met expectations.
Assessing the market, Mr. Mauro Gasparotti, Director of Savills Hotels, said that the growth of the tourism industry, especially international demand, has promoted the development of tourism and resort real estate activities. However, some investors are in a hurry to enter the market without thorough research in the planning process, leading to a gap between supply and demand in some destinations. Besides, there is also a situation of focusing on quantity over quality in some projects. Therefore, the lack of consideration for market characteristics and trends has led to product risks.
TOURISM IS A DRIVE FOR GROWTH
However, efforts to retain and attract tourists are expected to be the growth driver for resort real estate in 2024.
Ms. Pham Thi Mien, Deputy Head of Vars Market Research and Investment Promotion Consulting Department, commented: In 2024, support from opportunities for recovery and development of the tourism industry includes: continued loosening of visa policies. Promoting effectiveness, along with the 2% tax reduction policy for goods and services groups and many support promotion programs and organized tourism exhibitions, will be the driving force for investors to speed up progress, ‘pumping ” supply into the market. It is expected that the supply of resort real estate has the opportunity to improve by about 20% compared to 2023. In particular, the beach apartment type is the highlight of the segment, because it both meets the need for ownership and can Exploit for rent, create cash flow.
In particular, related to Decree 10/2023/ND-CP removing the pink book issuance activities of real estate types such as resort apartments, offices combined with resorts… in the coming time, it may reach the most penetration level. stability, bringing hope to developers and investors, thereby supporting a rebound. In addition, combined with the Chinese President’s visit to Vietnam and the policy of attracting tourists like Chinese tourists, along with other excellent diplomatic results at the end of 2023 will be a signal to boost demand. higher.
Giving comments, Mr. Nguyen Chi Thanh, Permanent Vice Chairman of Vars, believes that 2024 is still likely to encounter many difficulties for the Vietnamese economy in general and the real estate market in particular. However, in the field of resort real estate, public investment motivation and planning of nearly 40 provinces and cities have been approved by the Government, and it is forecasted that they will continue to be approved in other provinces and cities, promising to have positive results. can solve difficulties for many projects that have problems in this content. However, it is necessary to pay special attention and research mechanisms and policies to synchronously develop related industries and fields, to ensure that the real estate market has a solid foundation and deep development in ‘quality’. ”. This is m
