HCM CITY (VNS)— The third quarter saw five three-star hotels with 372 rooms enter the market, increasing the total three- to five-star stock by 7 per cent compared with the previous quarter, to more than 4,430 rooms, according to the latest report from Savills Vietnam.
In particular, the three-star segment's stock was up 15 per cent quarter-on-quarter.
The report said average occupancy was 68 per cent, 7 percentage points higher than Da Nang's.
However, it fell slightly by two percentage points quarter-by-quarter due to the performance of new hotels.
The average room rate of the overall market was VND1,621,000 (US$80) per room per night, a drop of 6 per cent compared with the second quarter.
This was due to lower prices offered by new three-star hotels in an attempt to boost their occupancy rate.
In the third quarter, the overall revenue per available room of three- to five-star hotels was VND1,108,000 per room per night, down 8 per cent from the second quarter.
This was mainly due to the overall revenue per available room of each grade falling 4 per cent compared with the previous quarter.
In the first nine months of 2012, the number of visitors to Khanh Hoa Province, where Nha Trang is located, reached more than 1.7 million, up 6 per cent compared with the same period last year.
Of that figure, the total number of foreigners rose strongly by 27 per cent year-on-year, while that of domestic visitors rose only slightly by 1 per cent.
As of the third quarter, 17 three- to five-star hotels were recorded as future projects. They are expected to supply more than 2,700 rooms.
In the fourth quarter, the hotel market was expected to receive two new projects, with a total of 398 rooms.
As of the third quarter, Nha Trang's total number of villas and townhouses was more than 1,710 dwellings from eight projects.
This included 440 dwellings from the primary market and 1,270 from the secondary market.
In the primary market, the west area of Nha Trang, including wards Phuoc Hai and Vinh Thai, accounted for the largest stock with 78 per cent market share.
Due to the current difficulties in the real estate market, the villa and townhouse sector had a soft performance.
In the third quarter, the absorption rate in the primary market was only 5 per cent.
In the secondary market, the average price dropped sharply by 19 per cent compared with the second quarter.
The price of villas and townhouses varied widely from VND1.3 billion to VND17 billion per dwelling.
Construction progress has become an important driver for a project's success in the difficult economy.
Currently, buyers prefer projects with completed infrastructure and ready-to-move-in dwellings.
Demand from Ha Noi and HCM City investors has also fallen, while real demand from local buyers drove the market in the third quarter. — VNS