Realty market shift restores confidence

Following a challenging period, Vietnam’s hospitality real estate market is entering a phase of deep adjustment.

- By Trang Le

Recent macro turbulence has not only exposed limitations of the previous growth model but has also accelerated a transition towards more sustainable development, anchored in genuine value and operational efficiency.

One of the most significant changes lies in developer strategies. Rather than relying on fixed profit commitments, many developers have shifted towards revenue-sharing structures or outright sales models that allow investors to operate assets independently. This transition helps ease cash flow pressure while establishing more realistic expectations in a market that increasingly demands transparency and accountability.

JLL notes that guaranteed return schemes of 8-12 per cent, once widely adopted, are now revealing structural weaknesses. Projects developed with high leverage while maintaining fixed return commitments often face declining investment efficiency. Many projects have also encountered operational challenges due to insufficient hospitality management experience, contributing to an erosion of investor confidence. Restructuring financial and operational models to ensure a sustainable operation of the projects has therefore become critical for restoring market stability.