According to a real estate company from Ho Chi Minh City, the demand for luxury coastal real estate has declined. Over the past five years, the demand for townhouses, resort villas and shops by the sea in the price range from 15 to 20 billion dong ($630,000- 840,000) has reached its lowest level. In the first half of 2023, more than 90% of luxury coastal properties remained unsold, which created a significant financial burden for developers.
According to the report of the Research and Development (R&D) department of DKRA Group, sales of coastal townhouses and shops in the second quarter of 2023 decreased by 97% compared to the previous year, and sales of villas by the sea for the same period fell by 95%.
Wo Hong Thang, Deputy Director of DKRA Group, noted that problems with oversupply and liquidity in the luxury real estate market have persisted since 2019. According to him, the recovery is likely to begin with residential facilities that meet the basic needs of people, while resort facilities may need more time to restore the balance. "It is expected that the market will take several years to recover," the expert added.
Source: The Star