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[VNECONOMY] Despite recent challenges in the resort real estate market, opportunities continue to exist for forward-looking investors. By the time the market fully rebounds and enters a strong growth cycle comparable to other leading destinations in the region, owning a high-potential property asset may no longer be easily attainable…

After a period marked by both internal and external market challenges, Vietnam’s resort real estate sector is now projected to enter a more positive phase of recovery and transformation…

According to the Vietnam Association of Realtors (VARS), real estate supply in 2025 is expected to increase by approximately 80% compared to 2024. The market is gradually seeing a broader release of inventory as developers complete adjustments to pricing structures and sales policies. However, new supply continues to be concentrated primarily in serviced apartments located within major tourism destinations. At the same time, demand is showing signs of improvement as the legal framework becomes increasingly refined, alongside the strong recovery of the tourism and retail sectors.

IMPROVING DEMAND

Primary prices remain relatively high, though they are expected to become more aligned with market realities. Resort villa prices are stabilizing in destinations with an oversupply of luxury inventory, while long-term ownership resort villas in key tourism markets are still recording annual growth of around 15%, supported by sustainable rental income streams. Transaction activity has also improved, with liquidity primarily concentrated in long-term ownership resort villas and tourism apartments with accessible investment levels, particularly in destinations benefiting from strong infrastructure and stable international visitor arrivals.

Mr. Luu Quang Tien, Deputy Director of the Dat Xanh Services Research Institute, believes that 2025 promises a more optimistic outlook for the resort real estate sector. Positive market sentiment is expected to strengthen developer confidence, especially among projects that have completed legal procedures and are now more prepared to launch sales activities.

Sharing a similar perspective, Mr. Le Dinh Chung, CEO of SGO Homes, stated that the resort property segment is likely to continue recovering and attracting investment throughout 2025, driven by several supportive factors: economic growth, a sharp increase in tourist arrivals — particularly international travelers — and ongoing efforts to resolve legal issues surrounding condotels and resort villas. In parallel, many projects are being restructured and developed with a more diversified product strategy to better adapt to evolving market demand.

However, experts also note that investors and buyers are becoming increasingly cautious when evaluating projects and seeking information. Market activity currently remains focused on condotels priced below VND 3 billion per unit, as well as long-term ownership resort products designed for accommodation purposes in destinations experiencing strong tourism recovery.

SOLUTIONS FOR A MORE SUSTAINABLE MARKET

Regarding the resort real estate segment, Mr. Vo Hong Thang, Deputy CEO of DKRA Group, commented that although the legal framework has shown encouraging progress, unresolved issues still remain. As a result, many investors continue to adopt a wait-and-see approach rather than committing capital immediately.

For this reason, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), emphasized the importance of implementing comprehensive solutions to ensure the market develops in a transparent, healthy, and sustainable direction.

For condotel developments serving tourism purposes, the association has proposed that the Ministry of Construction coordinate with the Ministry of Culture, Sports and Tourism to further refine construction standards and regulations. While current standards for hotel rooms, serviced apartments, and villas within resort developments under the 2017 Tourism Law are approaching international benchmarks, existing regulations for condotel construction are still not fully aligned with market realities.

In addition, the Ministry of Construction and the Ministry of Natural Resources and Environment are encouraged to support local authorities in issuing ownership certificates (“pink books”) linked to land-use rights for condotel units, with lease terms of up to 50 years, in accordance with the 2023 Real Estate Business Law and the 2024 Land Law.

For condotel projects originally developed on residential land that were later converted into commercial and tourism land — or projects that have since been rezoned back into residential land — the association has proposed granting ownership certificates to investors and buyers once financial obligations related to land use have been fully completed.

Notably, the Ministry of Construction is also considering proposals to allow foreign individuals to purchase or lease-purchase condotel units in tourism and resort projects located outside areas related to national defense and security. The policy is expected to improve liquidity, attract additional investment capital, and support the sustainable development of Vietnam’s tourism industry as a strategic economic sector making it a key economic sector in accordance with Resolution 08-NQ/TW dated January 16, 2017 of the Politburo.

According to Dr. Nguyen Van Dinh, the Vietnamese government continues to position tourism as a key pillar of the national economy, creating significant opportunities for tourism and resort real estate investment. Many major corporations are already pouring capital into this market through large-scale resort developments. In the near future, as tourism experiences stronger growth momentum, opportunities for resort and tourism real estate will become even more promising 

“In the current market environment, where resort real estate still faces challenges, opportunities remain open to forward-looking investors. But once the market fully recovers and develops at the same pace as other leading destinations in the region, entering the market will become far more difficult. By then, property values will have surged substantially, and acquiring premium assets will no longer be easy,” Dr. Dinh added.

Source: vneconomy.vn