According to the Khanh Hoa provincial Association of Real Estate Brokers, hotels have received a high number of requests for room booking cancellations from clients.

The director of a real estate trading floor in Nha Trang City said the local property market is connected closely with tourism development.

DKRA Vietnam, a market analysis firm, reported that beachfront villas are in short supply with only 16 villas available in Q1, just 3 percent of the previous quarter and 8.5 percent of the same period last year. Only four products were sold, just 1.6 percent of the quarter before.

Only one project was open for sale in Q1 (January) which provided 82 condotels, or 3.9 percent of the previous quarter and 4.7 percent of the same period last year. Only 25 products were sold, down by 95 percent and 98 percent, respectively.

Only one project was open for sale in Q1 (January) which provided 82 condotels, or 3.9 percent of the previous quarter and 4.7 percent of the same period last year. Only 25 products were sold, down by 95 percent and 98 percent, respectively.

Da Nang has the highest inventory level with only 9 percent of supplies having successful transactions.

The condotel markets of Binh Dinh and Khanh Hoa were also gloomy with the absorption rate hovering around 22-26 percent only. The liquidity was the most satisfactory on Phu Quoc Island of Kien Giang province and Ba Ria – Vung Tau, but the absorption rate was just 40 percent.

The supply of condotels may increase sharply in the time to come. In Khanh Hoa, for example, about 15,500 condotels will be launched on the market in 3-5 years.

According to the Khanh Hoa Construction Department, in 2019, there were almost no condotel projects in the province. In early 2019, the real estate prices decreased by 10 percent and decreased further in the second half of 2019 by another 20-30 percent.

According to real estate experts, most condotel project developers committed very high profit rates of 8-12 percent. However, there is no regulation which ensures the fulfilment of the investors’ promise.

Future

Nguyen Manh Ha, chair of the Vietnam Real Estate Brokers’ Association, said condotel has become the gloomiest real estate market segment following the failure to implement the commitments about profits by the developer of Cocobay Da Nang and other legal problems.

Dang Hung Vo, a respected real estate expert, said solving legal problems is the major solution for the condotel market. Many new kinds of properties have appeared in the market, including condotel, officetel and shophouse. Meanwhile, the 2013 Land Law doesn’t have detailed provisions on the land use regime for such multi-functional products.

Mai Lan

Red books won’t determine the survival of condotels: experts

Real estate experts believe that the condotel growth will not depend on state agencies but on investors.

More regulations needed to promote condotel market development

Detailed regulations are needed to promote a healthy condotel market, which has been going off-track for years due to an unclear legal framework, experts have said.