By the end of 2024, the supply in the tourism and resort real estate market has improved but not significantly, according to the Vietnam Association of Realtors (VARS).

VARS's report shows that the entire tourism and resort real estate market recorded about 4,400 new products for sale in the past year. This index increased by 40% compared to 2023, but was only 24% compared to 2018.

More than 54% of the supply was contributed locally by a high-rise project in Nha Trang. The projects for sale were all developed in the direction of diversifying types and services, utilities to meet the changes in the needs and tastes of buyers after the pandemic.

In addition, many projects still had to be suspended, delaying the sales implementation time to complete legal procedures. Many projects do not dare to launch because they are afraid of having to compete directly with shophouse and resort villa products in the secondary market.

At the end of 2024, some projects have boldly launched, accepted bookings, adding momentum to this segment. For example, Cara World Cam Ranh with nearly 2,000 low-rise products.

There is a clear differentiation in the demand for purchasing tourism and resort real estate. Specifically, the high-end customer group with strong financial potential is looking for long-term ownership products such as beach villas in famous destinations, with a system of services, utilities, international management and operation brands... Thereby, serving both personal vacation purposes and long-term investment.

For customers with average financial potential, this group has a need to find cash flow products with reasonable investment value such as condotels, resort apartments in hotel projects in popular tourist areas, priced under 3 billion VND. This demand is on the rise with the rapid expansion of the middle class. At this time, investors are researching and choosing relatively carefully and wisely.

In general, VARS believes that the demand for investment in tourism and resort real estate is still waiting for supply from reputable investors, when legal risks are eliminated by new legal regulations.

Over the past year, the primary price level, especially for townhouses and resort shophouses, remained high. Some tourism apartment projects recorded new subdivision/new building offering prices with an increase of about 10% compared to the previous offering period. In particular, there was a villa project sold at VND800 million/m2.

In the secondary market, the price level began to stabilize after a period of downward adjustment. Some condotel products in resort projects that have come into operation in key tourism areas recorded a slight price increase of about 5% over the same period.

Regarding the buying and selling situation, the whole market recorded about 2,500 transactions over the past year. The absorption rate on new supply reached about 50%. More than 80% of the transaction volume was contributed by a project in Nha Trang City (Khanh Hoa).

Customers are increasingly cautious in searching for information and choosing projects. Transactions are mainly concentrated in condotel projects with selling prices under 3 billion VND/unit, long-term ownership resort products serving the purpose of staying in areas with strong tourism recovery.

From an expert perspective, Mr. Le Dinh Chung, a member of the VARS Market Research Working Group, pointed out a series of positive factors that are affecting the recovery speed of the resort real estate segment.

Including the growing economy; the number of tourists, especially international tourists, has increased sharply; the Government has been actively implementing measures to achieve the goal of tourism being a key economic sector by 2030.

Along with that, legal issues related to condotels and resort villas are being resolved. Projects are being developed and restructured towards product diversification.

In addition, Mr. Chung also pointed out 4 existing factors that are hindering the recovery speed of this market.

First is the excess supply of high-end resorts in some destinations. Second is the low room booking rate in some areas, reducing the attractiveness to investors. Third is that some condotel projects are still entangled in legal issues. Finally, many resort real estate projects still follow the traditional model.

NSupply expected to increase by 80% 

Forecasting the development of the tourism and resort real estate market in 2025, VARS representative said that this segment will have more positive signals, especially condotel products when operating projects are granted certificates.

It is estimated that supply will increase by about 80% compared to 2024, expected to be released when investors complete adjustments in selling prices and policies. The main supply is serviced apartments in key tourist areas.

In addition, some areas still have excess supply of high-end resorts that have not been put into operation due to incomplete infrastructure and utilities.

Demand in 2025 is expected to continue to improve when the legal corridor is completed in the context of tourism and retail recovering positively. Long-term resort villas or tourist apartments in projects with clear operating plans in provinces and cities with developed tourism will still receive much attention.

Primary prices are forecast to remain high, but will be adjusted more appropriately. Resort villa prices will remain stable in some areas with excess supply of high-end products. Long-term resort villa prices in key tourist areas will continue to grow by about 15% per year thanks to sustainable rental cash flow.

In addition, some investors will show determination in restructuring their investment portfolios.

Regarding the buying and selling situation, transactions are forecast to continue to improve. Liquidity is concentrated in long-term resort villa products or tourist apartments with suitable investment rates in areas with good infrastructure and a stable number of international visitors.