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Why is resort real estate supply shortage?

Real estate hill resort

According to market research units, the number of foreign visitors, mainly from Asian countries, will continue to look to the Vietnamese market, creating conditions for the development of resort real estate. However, the supply of this type is in short supply.

Great potential but lack of supply

Over time, Vietnam tourism has made significant improvements. Michael Piro, Managing Director of Indochina Capital Corporation, said that the annual rate of growth (CAGR) of international visitors of Vietnam’s tourism in the recent five years is on par with Thailand. This is the “leverage” to stimulate real estate development thrive.

In addition, the economic growth, the higher living standards, the demand for convalescence has also increased, opening up more potential to develop resort real estate.

However, the supply of this type of real estate is in short supply, especially the resort segment, luxury hotels. A detailed analysis of the supply of resort hotels located within a two-hour radius of the city center reveals the difference between supply and demand. Specifically, there are more than 7,500 standard 4-5 star hotels in Nha Trang and Da Nang, welcoming 4 million visitors each year in each locality.

According to statistics, only about 800 hotels meet five star standards from Phan Thiet to Vung Tau, while these areas welcome more than 20 million visitors annual resort.

Vietnam has a lot of tourism potential but lack of real estate supply
Vietnam has a lot of tourism potential but lack of real estate supply

It is noteworthy that the real estate projects in the domestic tourism now only focus mainly on “resort” but not really focus on “travel” and “entertainment”. The market lacks the diversity of product types, repeats existing models, rather than grasps new trends and models. This is also the cause of the country’s tourism growth slower than many countries in the region.

In Asia countries such as Singapore, Thailand, Malaysia, Indonesia, … the type of real estate resort, tourism combined entertainment was invested by the government in 1990 in parallel with tourism development. This makes the synchronism in tourism, bringing the convenience for visitors when visiting, exploring, experience.

According to experts, resort real estate is one of the new segments and completely different from other forms of real estate. Travel is not merely sightseeing, but it is also linked to other needs such as relaxation, health care, entertainment, shopping … The type of real estate tourism, entertainment associated with accommodation and recreational activities will be a solution to wake up the tourism potential of Vietnam.

Real estate hill resort will be the new direction

After a long time focusing on real estate resort, the next time, real estate hill resort will be the new direction. Where the terrain is more unique, the more interested in tourists and therefore the potential for tourism is also greater.

Real estate hill resort
Real estate hill resort will be the new direction.

In addition, the General Statistics Office showed that the number of tourists and staying in mountainous areas is about 5 days longer than the 3 days of sea tourism. Clients of the real estate segment in mountainous areas are mainly people with high economic conditions, want to look for nature, breathe fresh air, fresh.

Despite the many opportunities, experts also warned that hilly resort property is not a playground for everyone. Representing a business development resort in the mountains in Sapa said that the cost of construction investment for a project located in the uplands often have to multiply the coefficient of 1.6 or higher and depending on the terrain , infrastructure construction. As a result, initial investment costs will frustrate retail investors.

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Why is resort real estate supply shortage?
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