Looking back at a year with many challenges and difficulties in the general economic environment, especially in the real estate sector. In the last quarter of 2023, with the strong intervention of the Government, ministries, departments to solve difficulties, remove obstacles in mechanisms, policies, administrative procedures, capital access… experts believe that the real estate market in 2024 will gradually recover.
The overall picture of the market will definitely have more new bright spots, especially in areas that still have room for development, with comprehensive planning, modern infrastructure, and affordable prices.
Come together to revive the market
According to Mr. Nguyen Duc Lap – Director of the Institute of Real Estate Research and Training, “The new regulations in the Housing Law, Real Estate Business Law have become a stepping stone for the market to become transparent and gradually recover. In the coming time, together with the passing of the amended Land Law, real estate will have a solid foundation to develop in a stable trajectory.”
On another aspect, a positive signal for the resort real estate segment in recent times is Decree No. 10/2023 of the Government on the amendment and supplementation of some articles of the guiding decrees on the implementation of the Land Law issued on April 3. This decree officially takes effect from May 20, 2023. According to Mr. Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, the issuance of this decree has a significant meaning in removing legal obstacles for the resort real estate segment. Specifically, for buyers of hotel apartments, resort holiday apartments (condotels), and lodging office units (officetels), as well as resort villas, which have been “in deep sleep” due to legal obstacles.
Economist Dr. Nguyen Minh Phong said that although there are still many difficulties and recovery rates are uneven across segments, the Vietnamese real estate market has overcome the most “extreme” period and is and will record more positive than negative trends in terms of total supply and demand, both inputs and outputs.
It is hoped that after the concentrated efforts to remove difficulties and the support policies of the Government, ministries, and localities, real estate market experts predict that the real estate market in 2024 will gradually recover in a positive and sustainable direction.
“Bright spots” in the resort segment
Currently, the deposit interest rate at banks is reaching a historically low level, causing many people to decide to invest in real estate to make effective profits from their idle money. Along with that, borrowing rates have also been adjusted down, creating favorable conditions for investors to access capital and increasing the liveliness of the market before a new growth cycle.
Mr. Mauro Gasparotti, Director of Savills Hotels, evaluates that investors are becoming more stringent and paying more attention to the developer’s capabilities and brand management rather than simply relying on media images or high-profit commitments.
In Nha Trang, KDI Holdings – the developer of Vega City Nha Trang project is still actively completing the final stages to hand over resort apartments to customers. A bright spot at Vega City Nha Trang is transparency and proper legality, which are rare qualities in today’s market.
As a relatively new real estate developer compared to many big names in the market, KDI Holdings always adheres to its own path when it comes to products and services for customers. Transparent legality is a solid foundation and a top priority for KDI Holdings. Mr. Do Tuan Anh, CEO of Vega City Nha Trang shares: “A company only succeeds when it maintains its reputation and trust with investors and partners. That is the sustainable success that KDI Holdings aims for. Therefore, right from the start, we determined that we must always build a solid foundation, and for real estate projects, the legal issue is the core factor of that foundation.”
With the goal of becoming a new international destination in Nha Trang – Khanh Hoa, Vega City Nha Trang will attract millions of tourists both domestically and internationally to experience hundreds of unique, new, internationally-standardized facilities such as accommodation services, entertainment, art such as the 6-star Gran Meliá Nha Trang resort, the Meliá Nha Trang hotel, Vega Continental Shopping Plaza facing the beach, the Hispania Nha Trang restaurant led by a Michelin star chef, the Shibui Japanese restaurant, the Dream Puppet show at the Đó theater, the yacht cruise across the bay with Vega Yacht…
Mr. Tuan Anh expects that with Decree No. 10/2023 of the Government, projects with complete legality and unique high-quality products, internationally standardized like Vega City Nha Trang will surely instill confidence in investors and bring them back to invest in the resort real estate segment which is evaluated to have great potential for development in Vietnam, thereby contributing to making tourism a spearhead economic sector.