Resort Real Estate Market - Good Opportunity for Investors in the US

Resort Real Estate Market - Good Opportunity for Investors in the US Resort Real Estate: Challenges Remain, but Opportunities Abound for Early Investors

Despite ongoing challenges, the resort real estate market still presents attractive opportunities for investors. However, once the market fully recovers and grows at a pace similar to neighboring countries, securing a valuable property will no longer be so easy.

A New Chapter for Resort Real Estate

After a turbulent period driven by both internal and external factors, resort real estate in Vietnam is projected to experience positive changes ahead.

According to the Vietnam Association of Realtors (VAR), the real estate supply in 2025 is expected to increase by around 80% compared to 2024. Supply is anticipated to expand further as developers adjust selling prices and policies. However, the majority of new supply will still focus on serviced apartments located in key tourist destinations.

On the demand side, a more complete legal framework and the ongoing recovery of tourism and retail sectors are fostering a gradual improvement in market demand.
Resort Real Estate Market - Good Opportunity for Investors in the US

Demand Begins to Recover

Primary prices remain relatively high but are being adjusted to better reflect market conditions. In some locations with an oversupply of high-end properties, resort villa prices have remained flat. However, long-term ownership resort villas in major tourism hubs continue to see a steady 15% annual increase thanks to stable rental income.

Transactions are also on the rise, primarily in the segment of long-term ownership villas or tourism apartments with reasonable investment costs in areas with strong infrastructure and consistent inflows of international visitors.

Mr. Luu Quang Tien, Deputy Director of the Dat Xanh Services Research Institute, believes 2025 will mark a more positive turning point for resort real estate. The improving market outlook is expected to boost investor confidence, particularly for projects with completed legal documentation.

Agreeing with this perspective, Mr. Le Dinh Chung, CEO of SGO Homes, stated that the resort real estate segment will continue to recover and attract investment in 2025. Several driving forces are accelerating this recovery, including economic growth, a sharp increase in international tourist arrivals, and gradual resolution of legal issues related to condotels and resort villas. Moreover, many projects are being restructured with a focus on product diversification.

Still, he noted: “Buyers are becoming increasingly cautious. Transactions are primarily concentrated in condotel projects priced under VND 3 billion per unit, or long-term resort properties used for residential purposes in areas where tourism is rebounding strongly.”

Solutions for a Sustainable Market

Addressing the challenges of this market segment, Mr. Vo Hong Thang, Deputy General Director of DKRA, remarked that while there have been positive legal developments, issues have not been fully resolved, leaving investors hesitant.

To promote a more transparent, healthy, and sustainable resort real estate market, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), emphasized the need for concrete policy actions.
Resort Real Estate Market - Good Opportunity for Investors in the US

For condotels specifically, HoREA recommends that the Ministry of Construction work with the Ministry of Culture, Sports, and Tourism to finalize construction standards and regulations. While current hotel room standards (without private kitchens) align closely with international norms as outlined in the 2017 Tourism Law, construction standards for condotels still do not fully reflect the real-world dynamics of the market.

Additionally, the Ministry of Construction and the Ministry of Natural Resources and Environment should assist localities in issuing land use right certificates (pink books) for condotels, with a maximum duration of 50 years, in accordance with Clause 1, Article 44 of the 2023 Real Estate Business Law and Article 149 of the 2024 Land Law.

In cases where land originally designated for residential purposes has been converted to commercial/tourism land—or where condotel projects were originally on commercial/tourism land but are now being reclassified as residential—HoREA proposes that certificates of ownership be granted once developers have legally converted the project and fulfilled all land-related financial obligations.

Furthermore, the Ministry of Construction is encouraged to submit a proposal to the Prime Minister to allow foreign individuals to purchase or lease condotel units in resort projects located outside areas critical to national defense or security. This would help boost liquidity, attract more investment, and support the long-term development of tourism as a key economic sector, in line with Resolution 08-NQ/TW dated January 16, 2017 from the Politburo.
Resort Real Estate Market - Good Opportunity for Investors in the US

Final Thoughts: Invest Early or Miss the Opportunity

According to Dr. Nguyen Van Dinh, the government’s strategy to position tourism as a pillar of the national economy presents significant opportunities for resort real estate investment. Some major corporations are already pouring capital into large-scale resort projects across the country.

“In my view,” Dr. Dinh shared, “while the resort real estate market still faces difficulties, this is exactly when investors should get in. If they wait until the market fully recovers and expands like in other countries, it will be much harder to secure a property. By then, prices will have soared, and ownership won’t come easily.”