Long-term unsold resort real estate, opening price still increases

Since the COVID-19 pandemic, products in the tourism and resort real estate segment have remained unsold for a long time. However, the selling prices of these products have increased steadily.

According to BHS Groups' report, in the fourth quarter of 2023, the supply and absorption of the high-rise resort segment decreased by 1.2 - 2 times compared to the previous quarter, with a low absorption rate of only 21%.

Illustration photo. (Source: DM)

For the whole year of 2023, supply decreased by 50%, absorption rate decreased by about 16% compared to last year.

Similarly, the low-rise resort segment also saw a sharp decline in both supply and absorption rates. In 2023, supply decreased by 90% compared to last year, with project absorption rates reaching only about 12%.

However, the selling prices of both segments are still increasing. Specifically, the selling price level in 2023 of the high-rise resort segment will increase by about 3% - 6%. In the North, the selling price is about 33 - 61 million VND/m2, in the Central region, the price is about 45 - 50 million VND/m2. In particular, in Khanh Hoa , there is a project offering up to 180 million VND/m2.

In the South, the average price of high-rise resort apartments in Kien Giang and Vung Tau is 99 million VND/m2 and 95 million VND/m2, respectively.

Low-rise resort products tend to increase by 1% - 4%. In the North, the selling price ranges from 37 - 65 million VND/m2, while in Hai Phong and Quang Ninh, the selling price is up to 170 million VND/m2.

In the Central region, the average selling price is about 60 - 85 million VND/m2, with a project in Phu Yen offering a selling price of 100 million VND/m2. In the South, the average price is 50 - 110 million VND/m2.

According to BHS Group's forecast, going through a difficult economic period and many legal problems, many resort projects are "lying still", unable or not being exploited, resulting in almost no liquidity despite cutting losses.

This leads to investors losing confidence and making it "difficult" to return to continue investing.

According to BHS Group, economic difficulties, legal problems, and customer concerns are the three main reasons why the resort segment cannot flourish in 2024.

"The time when customers return to resort investment is when legal issues are resolved, projects return to operation and become effective," this unit commented.

Source: https://www.congluan.vn/bat-dong-san-du-lich-nghi-duong-e-dai-han-gia-mo-ban-van-tang-post281769.html