Pandemic hits resort real estate

According to a report from the DKRA Vietnam JSC, many resort real estate project developers have had to suspend implementation and transactions due to the latest Covid-19 outbreak, causing a sharp fall in new supply and sales in July.

The report shows that the beach villa segment in southern and south-central provinces had just four projects for sale during the month, of which only one was a new project. Sales were very low, at only 12 per cent, or 21 units.

In the townhouse and shophouse segment, many projects were suspended or business stopped due to the pandemic, which caused supply and sales to fall sharply month-on-month.

The condotel segment also faced a situation where many investors were unable to sell. Supply and demand in the segment are unlikely to see any sudden change, and any change is likely to focus on south-central Binh Thuan province. In the first seven months of 2021, central Da Nang city had no new products in the condotel segment, while neighboring Quang Nam province had no new projects in the period.

The DKRA Vietnam JSC report also forecasts that supply in resort real estate market will continue to fall in the second half of 2021. The market will not see any project sell-offs despite the difficult circumstances. Demand for resort real estate may recover slightly if the pandemic is controlled over the closing months of the year.