Securing the future of resort real estate

Vietnam’s resort real estate market has been doing quite well despite the pandemic and should accept more foreign investment, analysts said at the “Identifying resort real estate market trends in the new context” online discussion held on November 15 by VnEconomy and Vietnam Economic Times.

Some 10,000 resort real estate products were offered for sale in the first three quarters of 2021, with an absorption rate of 30-40 per cent, which is high given the pandemic, according to Mr. Nguyen Manh Ha, Vice President of the Vietnam National Real Estate Association.
In the future, however, investors and authorities can still do more, analysts added.

Investors should change project development models, with a vision of carrying out multi-purpose projects combining resorts and other features. They should also apply a different and well-targeted vision. The ability to mobilize capital and implement projects also needs to be improved.
The management mechanism, policies, and legal framework, which have failed to keep pace with the rapid development of the market, require greater attention. Management should speed up rather than slow down the process, Mr. Ha commented.

The discussion also touched on the potential of international investors, especially retail investors, in the country’s resort real estate market.
Analysts agreed that foreign investors have higher standards, so domestic investors need to improve project quality and brand value. Ownership by foreign investors also helps raise the prestige of projects.

However, international retail investors are not permitted to own resort real estate such as condotels or beach villas. Vietnam should allow them to own such property under specific conditions, thus taking greater advantage of the potential they hold. Central and local authorities should also apply uniform pandemic prevention regulations so the market can reopen, Mr. Ha added.