Tourism real estate developments in Đà Nẵng, a popular tourist destination in central Việt Nam, where sales of condotels have reached a 10-year low. — VNA/VNS Photo
The condotel market is facing liquidity issues, with sales at their lowest level in six years in the first quarter of the year.
Around 90 per cent of condotel projects in the country saw no sales during the period, according to a report by property consultancy DKRA Group.
Out of the 4,800 condotel units available for sale nationwide, only 64 units were sold in the period, representing just 1.3 per cent of the total.
In popular tourism destinations such as Đà Nẵng, condotel sales have plummeted to a 10-year low, it said.
Developers are trying to boost demand by offering various support policies, but they are still struggling to attract buyers.
One of the main reasons for the lack of sales is the high prices of condotels, which remain around VNĐ150 million ($6,000) per square metre.
Developers are hesitant to lower prices due to heavy investments in high-end projects targeting affluent customers, experts said.
They also predicted it could take five to seven years for the condotel market to recover fully, as slow economic growth and limited tourism revenue continue to impact the sector.
They said residential properties which meet essential needs will bounce back sooner than resort properties such as condotels.
A lack of a legal framework for condotels, along with developers failing to fulfill profit commitments for investors, has contributed to low confidence and demand among buyers.
To rebuild trust, experts recommended establishing specific regulations for condotel standards and ensure developers keep their profit commitments.
While a decree was issued last year allowing ownership titles for condotel buyers, further guidelines are needed to facilitate the market’s recovery, experts noted.
Currently, there are over 240 tourism property projects with more than 114,000 condotels valued at VNĐ297 trillion (US$11.8 billion) nationwide, according to the Vietnam Real Estate Association.
These properties are mainly situated in key tourism markets such as HCM City, Hà Nội, Đà Nẵng, Bình Định, Khánh Hòa, Bình Thuận, and Bà Rịa-Vũng Tàu. — VNS