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Inventory condotel up to 90%

Thursday - 05/07/2018 21:19
In the second quarter, the absorption of condominium condotel plunged sharply, pushing up supply by 60-91%.
A reputable real estate brokerage company in Vietnam has just announced the development of condotel resort apartment market from Da Nang to Phu Quoc in April, May and June of 2018 with inventory surging up. The market launched 2,100 units but only absorbed 850 units.

Absorption rates by region are of concern. Phu Quoc and Ba Ria - Vung Tau have the best liquidity in the market but the absorption rate is only 39-40%, equivalent to the inventory level of 61-60%.

Meanwhile, the remaining sea-tourism cities have a lower rate of absorption of condotel apartments, respectively (26%), Binh Dinh (22%), Da Nang (9%). . Thus, the inventory of condominiums apartments in these three provinces is 74-78-91% respectively.

A reputable real estate brokerage company in Vietnam said that the old and new condotel supply in the market is quite plentiful but the absorption is quite low. Meanwhile, the supply may continue to increase sharply in the coming time with many projects being put into the market more than 1,000 units.

With condotel demand is not increasing, the risk of excess supply may occur. In addition to the tremendous inventory challenges, now is the time when hinges on the part of owners demonstrate how to execute these commitments and profitability.

Previously, in the third quarter of 2017, HCM City Real Estate Association (HoREA) has written to the Ministry of Construction special attention to the potential instability of condotel apartment market, the new investment model quickly and rapidly to create a fever recently.

According to the preliminary statistics of HoREA from 2014 to 2017, there has been a fever of investment in the development of a new type of tourism real estate product from developed countries. Hotel and villa projects in resorts (also known as condotel). Products are being developed in the coastal areas, islands, including Nha Trang, Da Nang, Phu Quoc are three areas are growing hot.

In 2016, the total supply of condotel apartments has reached 16,000 units. In the period 2017-2019, it is estimated that about 27,000-29,000 condotel apartments will be sold on average each year. Most of the products have an area of about 45m.

Source: Vnexpress newspaper

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