Vietnam’s Resort Real Estate Faces Slow Recovery in 2025
Vietnam’s resort real estate sector has faced a prolonged downturn since 2022, and while 2025 brings signs of recovery, experts believe a full rebound remains distant.
Key issues include:
- Unresolved legal hurdles slowing investor confidence.
- Large inventory backlog, with unsold properties weighing on the market.
- Weak investment demand due to concerns over profitability and liquidity.
According to DKRA Group, around 6,500 new resort real estate units are expected to launch in 2025, nearly three times the supply of 2024. However, this remains far below the peak levels of 2018-2019.
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Despite ongoing challenges, 2025 is expected to show gradual improvement:
- Supply growth: Vietnam’s resort real estate inventory will rise by 80%, with nearly 8,000 new units hitting the market.
- Legal reforms: Policies like Decree 10, which clarifies ownership rights for condotels and officetels, are boosting market confidence.
- Tourism revival: As Vietnam’s tourism industry strengthens, demand for resort properties is expected to slowly recover.
However, experts caution that the market is still fragile, with legal issues not fully resolved and many investors adopting a wait-and-see approach.
Key Factors Limiting a Strong Rebound
Legal Uncertainty Slows Investment
- Ownership regulations for resort properties remain unclear, delaying buyer decisions.
- Many investors are waiting for legal frameworks to fully stabilize before committing capital.
Land Prices & Cost Pressures
- Rising land prices and commercial lease rates are increasing development costs.
- Higher costs reduce profitability, making it harder for developers to attract investors.
Oversupply & Investor Skepticism
- After years of rapid expansion, many resort projects remain underutilized.
- Investors are wary due to past financial disputes over promised rental returns.
Investment Trends & Future Outlook
While the overall resort real estate market remains weak, some segments are showing potential:
Condotels: With new legal clarifications, condotel units may see renewed investor interest.
Tourism hotspots: Areas with strong infrastructure and international tourism growth will recover faster.
Selective high-end projects: Only premium locations with proven rental demand will attract serious buyers.
However, the market is unlikely to return to 2018-2019 levels anytime soon. Experts predict it could take several more years for resort real estate to regain full momentum.
A Slow Road to Recovery
While 2025 brings gradual improvements, Vietnam’s resort real estate sector still faces major hurdles. Investors should remain cautious, focusing on legally secure properties in top-performing tourism locations.
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