A subdued market
According to the Ministry of Construction’s report on the housing and real estate market in Q2 2024, there were some notable new hotel and resort projects that entered the market across the country during this quarter. These include the 5-star Charmant Suite & Boutique Hotel in Can Tho, The HUB by Hotel Academy Vietnam in Ho Chi Minh City, and the Wyndham Garden Sonasea Van Don resort in Quang Ninh.
The leisure real estate market remains subdued. Photo: IT.
Additionally, there were some new leisure real estate projects launched during the quarter that are expected to add new supply to the market. These include:
In Quang Ninh: the Beverly Hills Ha Long project located on Hai Quan Hill, Bai Chay Ward, Ha Long City. This project has a scale of 10.8 hectares and offers a diverse range of real estate products, including villas, adjacent houses, hotel apartments, and high-class apartments. There are 138 villas with areas ranging from 250 to 450 square meters, 22 adjacent houses with areas from 80 to 100 square meters, 160 hotel apartments from 35 to 62 square meters, and 92 high-class apartments ranging from 62 to 128 square meters.
In Da Nang: Sun Symphony Residence, a project located along the Han River on Tran Hung Dao – Le Van Duyet Street, Son Tra District, Da Nang City. The complex consists of two subdivisions: The Sonata (low-rise) and The Symphony (high-rise).
In Thanh Hoa: The Pathway, part of the Sun Grand Boulevard project, located in Sam Son beach square. The Pathway comprises nine 20-story apartment buildings with a variety of apartment types, from studios to 3-bedroom units, Dual key, and Penhouse. The studio apartments have an area of 35 square meters, while the 1 to 3-bedroom apartments range from 54 to 79 square meters.
On Phu Quoc Island (Kien Giang province), a new project called Lagom Phu Quoc has been introduced to the leisure real estate market. It spans 1.1 hectares and offers 81 low-rise products, including quad-villas and twin-villas with a 2-story design.
The Ministry of Construction also provided information on the selling prices of some notable projects during the quarter. For example, shophouses/villas in the L’Aurora Phu Yen project were advertised at prices ranging from VND 85-130 million per square meter, while the Vlasta Sam Son project in Thanh Hoa province had selling prices of approximately VND 70-80 million per square meter.
In terms of condotel prices, the A La Carte Ha Long project with a permanent red book was advertised at VND 45-65 million per square meter, the 5-star plus The Song project in Vung Tau with a 50-year land lease was offered at VND 35-45 million per square meter, and the Flamingo Cat Ba project in Hai Phong City with a red book was priced at around VND 60 million per square meter.
“The leisure real estate market for sale in the quarter is assessed to remain subdued and show no signs of recovery,” the Ministry of Construction’s report stated.
Selling at a loss
According to surveys conducted by reporters on various real estate trading websites, there were quite a few advertisements for the sale of leisure real estate in many localities such as Quang Ninh, Da Nang, Nha Trang (Khanh Hoa), Phu Quoc (Kien Giang), and Ba Ria – Vung Tau. Most of these advertisements were for hotel apartments (condotels) being sold at a loss, ranging from hundreds of millions to billions of VND.
Advertisement for the sale of a hotel apartment in Ha Long, Quang Ninh, at a loss of VND 500 million. Screenshot.
For instance, a 57-square-meter sea-view hotel apartment in a project in Ha Long, Quang Ninh, is being advertised for sale at a loss of VND 500 million. According to the seller, the apartment was previously purchased for VND 4.1 billion, but due to the subdued market conditions and the need for investment capital, they are willing to sell it at a loss. The family had previously advertised the apartment for sale but had not found a buyer.
DKRA’s market report for July 2024 also indicated that the condotel segment continued to face challenges. No new supply or sales were recorded during the month.
Additionally, many condotel projects are still entangled in legal issues, causing delays in sales activities and limiting the market’s supply. Overall demand in the market remains low, with primary consumption focusing on products priced below VND 3 billion per unit. Meanwhile, primary selling prices have not shown much change compared to the previous month.
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