Vietnam’s “Resort real estate” market collapses

A new report by real estate firm DKRA Vietnam said that the supply and consumption of condotels and resort villas fell by double digits in the July ~ September period as the ‘ghost month’ held investors back.

• Seaside Villa Projects – Only three new projects were released into the market during the third quarter of this year, supplying 86 new villas, down 95% compared to the second quarter of this year. 58 units were bought, down 96% over the second quarter. 

• In the Condotel / Resort segment, six projects were released, which added 2,605 new apartments into the market, a decrease of 32% over the second quarter

According to DKRA, the second quarter slowdown in resort real estate is a seasonal phenomenon and sales fell drastically during the third quarter because August coincides with the seventh lunar month, traditionally called the “ghost month.” This is a time when people avoid buying new things or engaging in important transactions in order to avoid bad luck.

DRKA says that they expect that supply and demand of resort real estate will increase during the October ~ December period. They expect to see growth in the sea villa segment since investors are showing interest in resort complexes that include beach villas and townhouses.