Resort real estate needs to cross the path to rise up

Alma Cam Ranh Resort, Nha Trang.

The continuous waves of COVID-19 epidemic at home and abroad have really "knocked down" the tourism industry, keeping hundreds of resort projects and tens of thousands of condotel apartments and coastal villas unsolved.

“Fresh wind”

According to real estate experts, Vietnam's tourism industry always has plenty of room for recovery and development. It is proven that in the middle of 2020 when the first epidemic was extinguished, the tourism industry recovered strongly on domestic stimulus policies. Therefore, when this epidemic wave was under control, the tourism market would recover and bring resort projects back to the "race track".

DKRA's Q1 report shows that resort real estate recorded positive signals in both supply and transaction volume. Specifically, nearly 800 coastal villas came into the market, up 26 times over the same period last year; shophouse has 222 units; supply of condotels also surged in the first three months when 752 units were launched at three projects, up 7.4 times from the previous quarter and 8.6 times from the same period last year.

Mr. Nguyen Hoang, CEO DKRA Vietnam said that the jump in the supply of coastal villas, shophouses, and condotels and the gradual increase in liquidity indicate a revival in the resort real estate market after a gloomy 2020.

A "fresh wind" has blown into the resort real estate market when a series of projects were started and introduced to customers. For example, in Phu Yen province, Everland Group broke ground simultaneously on 2 projects, including Xuan Dai Bay resort complex and Crystal Holidays Marina with a total land area of ​​37 hectares. While Indochina Kajima Development Co., Ltd. also broke ground on Bai Nom resort project with an area of ​​60 hectares…

According to Mr.Nguyen Manh Ha, Chairman of Landora Group, after the COVID-19 epidemic waves, the Government, businesses, and people now have experience in responding to and preventing this pandemic, while activating the "new normal" to help real estate businesses confidently return to the market. They are also forced to "live with floods", realizing the dual goal of both fighting the epidemic and developing production and business.

Adapting to survive

Mr.Nguyen Tho Tuyen-Chairman and CEO of BHS Group said that "events" that affected the real estate market have changed the behavior of real estate buyers and users- tourists. Currently, they no longer believe in the promise of profit, but expect the real value of properties and their profitability. A large number of tourists do not have too luxurious needs, but find places that are affordable and can come back for weeks or months, or even stay for a long time to relax.

"For returning to the racetrack, resort owners need to change and avoid repeating the path," emphasized Mr. Nguyen Tho Tuyen, adding, for example, when asking to convert a resort project or a part of the project into a long-term residential land project, the purpose is to have an advantage in ownership, thereby attracting investors and raising revenue for the project to develop extra 50-year tourism products.

Or as far as the conversion of a project or part of a project into second home products is concerned, villa areas must be split, but their design is truly ecological, green, and full of utilities. Customers can complete the villa in their own style. Especially, the resort project must be under the control of the property management and exploitation unit, which can act as a franchisor. Thus, the investment unit cost will be dropped and customers will find it cheap without thinking too much.

Mr. Nguyen Tho Tuyen said that a certificate of ownership must be issued to 50-70 year-owned villas. Therefore, resort owners should try their best to complete the "birth" procedures for this type of investment so that investors can feel secure when investing in coastal villas.

“The society is constantly moving, so no solution is perfect. However, in the current market landscape, the emergence of some new resort trends could be remarkable. Customers are increasingly fastidious and smart, so they need to have a variety of choices,” shared Mr. Nguyen Tho Tuyen.