Around 7,800 units were available for purchase in the primary market, and 40% was snapped up.
Nearly 80% of the transactions were for condotels in the central region, with Khanh Hoa Province alone accounting for 54%. The Vietnam Association of Realtors (VARS) confirmed the numbers.
Condotel supply rose 40% from 2023 as of the end of last year.
Prices in the central region start at VND34 million (US$1,345) per square meter. The figures are at VND36 million in the north and VND55 million in the south.
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Cocobay condotel project in Da Nang City, central Vietnam. Photo by VnExpress |
Vo Hong Thang, deputy CEO of DKRA Group, said that compared to 2023, the condotel segment showed growth in some areas, driven by the recovery in property and tourism.
There were nearly 17.5 million foreign visitors and 110 million domestic travelers last year, according to the Vietnam’s National Authority of Tourism.
Besides Hanoi and HCMC, provinces like Khanh Hoa and Quang Ninh and Da Nang City reported impressive growth in tourist numbers, aligning with their large condotel supply in recent years.
But Thang said condotels remain mired in problems legal uncertainty and lack of returns.
Many developments are also progressing very slowly or not at all due to lack of funding, eroding investor confidence in the short term, he added.
VARS chairman Nguyen Van Dinh echoed these concerns, noting that the condotel segment is struggling with oversupply of high-end properties.
Low occupancy rates, often only 30-50%, further diminish their appeal to investors, he added.
This year, new supply is expected to remain similar to last year, ranging from 2,500 to 3,000 units, mostly in the southern province of Ba Ria-Vung Tau and the northern province of Quang Ninh.
Developers are likely to maintain high pricing for condotels due to rising development costs, but could offer incentives such as discounts and interest rate subsidies to stimulate demand.
