Resort real estate supply is forecast to improve in 2024. Photo: DH

Rebound is not yet completed

According to data from the General Statistics Office of the Ministry of Planning and Investment, approximately 1.4 million international visitors visited Vietnam in December 2023, a rise of 11.2% over the previous month and a 93.9% increase over the same period last year. Vietnam tourism would attract 12.6 million foreign visitors in 2023. This figure is 3.4 times greater than the aim of 8 million visits in 2022.

The government's recent open policies toward the tourist industry have established circumstances for domestic tourism to thrive, with the goal of totally restoring tourism activity prior to COVID-19. However, the recovery of the tourist sector connected with resort real estate development continues to encounter several challenges due to the effect of numerous variables such as legal, administrative, and funding constraints.

According to the Vietnam Real Estate Brokers Association (VARS), 4Q23 has grown more hectic owing to reports of a number of projects, Kick off events, and large-scale sales openings that were lacking in previous quarters.

However, resort real estate has had the greatest impact, with prices continuing sliding into "long falls." However, according to Decree 10/2023/CP-ND, there is a chance for "rebirth."

Statistics showed around 913 new real estate supplies will be introduced to the market in 4Q23, which is comparable to supply in 3Q23 and only 30% less than the same time last year. The current major supply is beach apartments, which are dispersed throughout the North, Central, and South areas such as Quang Ninh, Phu Quoc, and Da Nang.

Supply did not match expectations since certain large-scale projects had to temporarily halt sales owing to legal issues.

More thrust is needed for resort real estate to quickly break out again. Photo: DH

Needing more thrust

Experts believe that resort real estate is inextricably linked to the tourist business. The intimate connection between these two sectors creates tremendous opportunity for resort real estate at a time when tourist demand, both local and international, is on the rise.

Ms. Pham Thi Mien, Deputy Head of VARS Market Research and Investment Promotion Consulting Department, stated that in 2024, tourism industry supports, such as visa loosening policy, combined with the 2% VAT reduction policy for goods and services, and many other support programs, will be a driving force for investors to accelerate resort real estate supply, increasing it by about 20% over 2023.

Furthermore, beach apartments will be the highlight of resort real estate since they both answer the urge for ownership and can be rented out to generate cash flow.

Decree No. 10/2023/ND-CP, issued April 3, 2023, in particular, removes legal hurdles to issuing ownership certificates for resort flats, workplaces linked with resorts... There will be some amount of absorption in the near future, giving investors and property owners hope.

Meanwhile, Mr. Nguyen Chi Thanh, Permanent Vice Chairman of VARS, stated that the Vietnamese economy in general, and the real estate industry in particular, are anticipated to face numerous obstacles and hurdles in 2024. With resort real estate, public investment and planning in roughly 40 provinces and cities in 2023, and more in 2024, will alleviate real estate challenges.

"However, it is still required to explore regulations to synchronously grow related industries and disciplines such as tourism and services to guarantee that the real estate market will develop thoroughly in "quality." This is a critical step in regaining the trust of customers and investors in resort real estate," Mr. Thanh remarked.