Thursday , June 20 2024

30,000 beachfront villas, shophouses on the shelf

Vietnam’s coastal tourist localities currently have roughly 30,000 beachfront villas, shophouses and townhouses, priced at tens of billions of dong a unit, in inventory.

Real estate consultancy DKRA Vietnam said the total inventory of coastal properties had by the end of June been approximately 30,000 units, including 15,000 beachfront villas.

Specifically, 2,400 beachfront villas have been opened for sale but have not been sold, and some 12,600 others have not been launched yet due to the dormant real estate market.

By the end of June, some 15,000 beachfront shophouses and townhouses had been inventory.

Specifically, nearly 2,500 units have been opened for sale but have not yet been purchased and some 12,400 others have not been launched yet.

According to the consultancy, only beachfront shophouses and townhouses were sold in the second quarter of this year, falling by 97% against the same period last year.

Over 80% of project developers have had to adjust selling prices and sales policies to boost sales, but the results have not been satisfactory.

In the face of cash flow pressure, many developers have offered discounts of up to 40-50%.

In the second quarter, only 50 beachfront villas were sold, down 95%, with the average selling price of VND30 billion (US$1.27 million) per unit in the South, and the most common selling price of VND15 billion in the North.

A real estate company based in Ho Chi Minh City, which is implementing many resort projects in Ba Ria – Vung Tau Province and Phu Quoc Island in Kien Giang Province, said its sales of beachfront villas, shophouses and townhouses with selling prices of VND15-20 billion per unit in the last six months have dropped to the lowest level in the last five years. The weak demand led to the inventory of more than 90%.

Similarly, a real estate company listed on the Ho Chi Minh Stock Exchange, which has many projects in central and southern coastal localities, said its beachfront villa inventory is 95% now.

As noted by VnExpress, in the first two quarters of this year, the beachfront real estate market continued to see few transactions of large-value properties and low liquidity of this segment which started in 2019, the longest period of low liquidity among all segments.

The latest report of the Vietnam Association of Realtors (VARS) showed in the second quarter, high-end beachfront properties, priced over VND10 billion, had almost no transactions.

The selling price of beachfront properties remained flat in the first six months of this year.

The highest selling price of nearly VND200 million per square meter was recorded in the South.

The most common selling price in the North and the central region was around VND80 million per square meter.

Vo Hong Thang, deputy director of R&D at DKRA Vietnam, stated the inventory of beachfront villas and townhouses until the second quarter is at an alarming level, but there is no solution to improve sales amid the liquidity crisis in the whole real estate market.

He forecast the beachfront property market will need at least three more years to find the balance and gradually show significant positive signals.

The real estate market will not improve in the coming months, he said.

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