A number of condotel projects are located in coastal town Nha Trang, central Khanh Hoa Province. Photo by Shutterstock/Nguyen Phuc Thanh.
Resort real estate supply and sales fell to a five-year low last year, according to real estate consulting company DKRA Vietnam.
Supply of villas fell by 79 percent to 541, and only 239 were sold, an 88 percent decline, it said.
There were only three new condotel projects with a total of 525 units last year, a 95 percent fall. Sales fell by 96 percent.
The leading condotel markets like Khanh Hoa, Da Nang, Phu Quoc did not have any new project.
Leisure travel fell into the severest crisis in decades. The market is not expected to make a revival in 2021.
According to some experts, the situation in the resort real estate market in 2020 was partly caused by the changing investor sentiment due to the Covid-19 pandemic.
However, even before the pandemic, the level of investor interest in resort real estate remained low because of the incomplete legal status for these types of assets and the dispute that broke out over reneged promises of regular returns on investment.