Resort real estate on track for robust recovery

By An Le, Dinh Nguyen
Thu, April 21, 2022 | 8:10 pm GMT+7
 MeySenses Lucia Bay Bai Lu project in Nghi Loc district, Nghe An province, central Vietnam. Photo courtesy of the project.

MeySenses Lucia Bay Bai Lu project in Nghi Loc district, Nghe An province, central Vietnam. Photo courtesy of the project.

Resort real estate experienced a rebound in the first quarter, with abundant supply and higher selling prices, with over 4,000 units sold, according to consultancy DKRA Vietnam.

In the resort villa segment, 12 projects were launched, providing 1,020 units, up 4% against Q1/2021. Consumption-to-supply ratio reached 57%, 2.3 times higher year-on-year, the firm noted in its Q1 market report.

Thirteen projects comprising resort townhouses/shophouses in coastal complexes were launched in Q1, offering 2,768 units, 12.4 times higher year-on-year. Consumption reached 87% of new supply, up 14.7 times.

Meanwhile, condotel supply and consumption remained low, yet showed no recovery signs, with 613 units coming from four projects, down 18%. Consumption reached 32% of new supply, down 57%.

For Q2, DKRA predicted an increase in condotel supply of about 1,000 units, mainly in Da Nang city and Quang Nam province in the central region, and Ba Ria-Vung Tau province in the south.

The supply of resort villas will climb to about 1,700 units, while resort townhouses/shophouses are expected to remain at about 2,700 units, mainly found in the central provinces of Binh Thuan and Thanh Hoa, and Ba Ria-Vung Tau, according to DKRA.

Consumer demand is expected to increase slightly from Q2, focusing on townhouse/shophouse resorts, resort villas, and projects developed by large and prestigious investors. While the integrated resort model continues to draw consumer interest, the report said.

According to CBRE Vietnam, Covid-19 has changed tourist preferences toward nearby and accessible locations. It was demonstrated by a lower decline of 20-40% in domestic visitors in Ba Ria-Vung Tau and Binh Thuan in 2020 year-on-year than the 60-70% reduction in Da Nang city and Khanh Hoa province. Phu Quoc, Vietnam's largest island off the southern coast, remained an ideal destination with only a 23% decline in domestic travelers from 2019.

The nearby tourism trend also caused investment flows to shift from traditional markets like Da Nang and Khanh Hoa to new areas like Ba Ria-Vung Tau and Binh Thuan.

CBRE statistics show that Ba Ria-Vung Tau in 2021 had three new projects launched, providing 382 villas, while the other 372 units came from NovaWorld Ho Tram’s divergent Habana Island.

Notably, the province’s supply has increased sharply since 2019, especially high-end and luxury projects, with a selling price of VND52-78 million per square meter and VND85-130 million ($5,700) per square meter, respectively. Therefore, Ba Ria-Vung Tau's market selling price has been strengthened and achieved an annual growth rate of 21% during 2018-2021.

Meanwhile, Binh Thuan in 2021 was provided with 270 villas from the NovaWorld Phan Thiet project’s Waikiki divergence. The provincial supply has skyrocketed since 2018.

"Binh Thuan’s tourism and resort market is reviving strongly after a long hibernation and is expected to explode in 2022-2025, supported by the acceleration of infrastructure waves. The province’s average selling price recorded a compound annual growth rate of 16% in 2017 -2021," CBRE noted.

After two years heavily affected by Covid-19, DKRA experts believed the tourism market has begun to recover strongly in the first months of 2022. This was supported by the reopening of international routes from March 15, and the "vaccine passport” mechanism that was expected to attract international visitors.

"After nearly three years impacted by the pandemic, Vietnam’s tourism is booming again. It will be difficult to book rooms for upcoming holidays. Resort real estate has shown their agreat allure, reflected by the Q1 sales," said Nguyen Van Hau, CEO of Asian Holding Real Estate JSC.

Along with tourism improvement, CBRE believed resort real estate is on track for recovery, with many projects to be launched this year. Meanwhile, major brand involvement in this segment also improves project quality, attracts capital flows, and increases the long-term value of investment assets, it added.

Comments (0)
  • Read More
Our prices 30-40% lower than DHL, Viettel Post: Gozo CEO

Our prices 30-40% lower than DHL, Viettel Post: Gozo CEO

Gozo, a Vietnamese logistics startup, currently holds a key competitive advantage: its prices are 30-40% lower than those of major players like DHL and Viettel Post, said Phan Duy Minh, founder and CEO of Gozo Express.

Companies - Sat, May 17, 2025 | 12:27 pm GMT+7

New rules on foreign investors’ acquisition of shares in Vietnamese credit institutions

New rules on foreign investors’ acquisition of shares in Vietnamese credit institutions

Vilaf lawers provide an insight into the government's new Decree 69/2025/ND-CP which amends a number of provisions of Decree 01/2014/ND-CP on foreign investors’ acquisition of shares in Vietnamese credit institutions.

Banking - Sat, May 17, 2025 | 8:17 am GMT+7

Vietnam forecast to become world’s second-largest rice importer by 2025-2026

Vietnam forecast to become world’s second-largest rice importer by 2025-2026

Vietnam is projected to become the world’s second-largest rice importer in 2025-2026, only after the Philippines, as the country must ramp up imports to meet export demand amid falls in domestic production, according to the latest World Agricultural Supply and Demand Estimates, released by the US Department of Agriculture (USDA).

Southeast Asia - Fri, May 16, 2025 | 11:36 pm GMT+7

The Trump Organization gets okay for $1.5 bln property project in northern Vietnam

The Trump Organization gets okay for $1.5 bln property project in northern Vietnam

A $1.5 billion golf, eco-tourism and urban complex proposed by a joint venture between Hung Yen Investment and Development Group and IDG Capital, which represents The Trump Organization, has received in-principle approval from the Vietnamese Government.

Real Estate - Fri, May 16, 2025 | 10:46 pm GMT+7

Vietnam's leading developer Becamex seeks to become billion-dollar company

Vietnam's leading developer Becamex seeks to become billion-dollar company

Becamex, a leading industrial real estate developer in Vietnam, is strongly restructuring itself, attracting more private investment capital, and reducing state ownership, with an aim to become a billion-dollar company.

Companies - Fri, May 16, 2025 | 5:10 pm GMT+7

S Korea's Hanwha Energy eyes more LNG power projects in Vietnam

S Korea's Hanwha Energy eyes more LNG power projects in Vietnam

Hanwha Energy is keen to invest in more LNG-to-power projects in Vietnam, vice president Kim Young-Wook said in a meeting with the country's Ministry of Industry and Trade on Thursday.

Energy - Fri, May 16, 2025 | 3:32 pm GMT+7

Vietnam, Thailand elevate relations to comprehensive strategic partnership

Vietnam, Thailand elevate relations to comprehensive strategic partnership

Vietnam and Thailand have upgraded their relations from a strategic partnership, established in 2013, to a comprehensive strategic partnership.

Politics - Fri, May 16, 2025 | 12:44 pm GMT+7

Vietnam, China firms partner to develop pumped storage hydropower in Vietnam

Vietnam, China firms partner to develop pumped storage hydropower in Vietnam

Vietnam's Power Generation Corporation 2 (EVNGENCO2) and China's Lancang-Mekong International Company Limited (CSG-LMI) have signed an MoU on cooperation to develop pumped storage hydropower projects in Vietnam.

Companies - Fri, May 16, 2025 | 12:27 pm GMT+7

Vietnam market rebound in May: Leading stocks begin to rally

Vietnam market rebound in May: Leading stocks begin to rally

A new wave of stock market gains appears to be forming in Vietnam, opening up promising investment opportunities for both institutional and retail investors.

Finance - Fri, May 16, 2025 | 11:12 am GMT+7

Malaysia's TNB proposes partnership with Vietnam's EVN in connecting regional power grids

Malaysia's TNB proposes partnership with Vietnam's EVN in connecting regional power grids

TNB, Malaysia's largest utility, has proposed Vietnam's state-owned utility EVN to cooperate in building a power transmission network connecting countries, including a line between Malaysia and Vietnam, via land and sea.

Energy - Fri, May 16, 2025 | 8:17 am GMT+7

New Vietnam-China int'l road transport route opens

New Vietnam-China int'l road transport route opens

Convoys carrying electronic components, fresh vegetables, and daily necessities departed simultaneously from Nanning in south China's Guangxi Zhuang Autonomous Region and Kunming in southwest China's Yunnan province on Wednesday morning, heading for Hanoi, the capital of Vietnam.

Southeast Asia - Thu, May 15, 2025 | 10:34 pm GMT+7

Indonesia’s rice reserve set to hit record 4 mln tons

Indonesia’s rice reserve set to hit record 4 mln tons

Indonesia’s rice reserves are on track to surpass 4 million tons, setting an all-time high after reaching a new record of 3.7 million tons in mid-May.

Southeast Asia - Thu, May 15, 2025 | 10:24 pm GMT+7

China's giant Huadian Group eyes enlarging renewable energy portfolio in Vietnam

China's giant Huadian Group eyes enlarging renewable energy portfolio in Vietnam

Huadian Group, a wholly state-owned company of China, is keen to further invest in Vietnam’s renewable energy sector.

Energy - Thu, May 15, 2025 | 9:40 pm GMT+7

Vietnam’s macroeconomic indicators 'broadly positive': Dragon Capital

Vietnam’s macroeconomic indicators 'broadly positive': Dragon Capital

Vietnam's macroeconomic indicators remained broadly positive, with both trade and FDI attraction performing well in the first four months of the year, write Dragon Capital analysts.

Economy - Thu, May 15, 2025 | 5:47 pm GMT+7

'How many new jobs created’ should be new KPI for local governments: VCCI leader

'How many new jobs created’ should be new KPI for local governments: VCCI leader

With a shift in thinking about the role of the private sector, local governments may soon prioritize creation of new jobs and businesses over traditional growth metrics, according to Dau Anh Tuan, deputy secretary-general of the Vietnam Chamber of Commerce and Industry (VCCI).

Economy - Thu, May 15, 2025 | 5:23 pm GMT+7

Herbalife’s Vietnam earnings hit $75.4 mln in Q1, exceed China tally

Herbalife’s Vietnam earnings hit $75.4 mln in Q1, exceed China tally

Herbalife, a global multi-level marketing corporation selling dietary supplements, recorded $75.4 million in net sales in Vietnam in the first quarter of 2025, according to the firm’s report.

Companies - Thu, May 15, 2025 | 5:01 pm GMT+7