It is easy to see homestays for sale in Ninh Binh on real estate websites with the main reason that owners need to pay off bank loans.
A homestay in Ninh Binh
Most of the homestay facilities are situated near local famous tourist sites.
Homestay services strongly developed between 2016-2019 according to Ninh Binh’s homestay owners. However, since the pandemic ravaged Vietnam, they have been facing difficulties, forcing owners to sell.
Nguyen Thi Bac in Hoa Lu District said that her family borrowed nearly VND10 billion (USD434,782) to build a 1,000-square-metre homestay. From 2017 to 2020, the service’s business results were quite good. But since the pandemic occurred in 2020, they have endured big losses. In April this year, Bac decided to sell the homestay at VND8.5 billion to repay the banking loan.
Le Van Trong also from Hoa Lu District said that in December last year, he sold his 450-square metre homestay at VND15 billion (USD652,173). Lots of people called him to ask for more information about the facility, but no one bought it. He decided to lower the selling price to just VND12 billion but has still failed to find a buyer for the homestay. He still has to repay high interest bank loans every month.
According to the Ninh Binh Real Estate Association, the pressure for bank loans is the major reason for the sell-off of homestays. Most of the interest in the properties are real estate brokers.
Ninh Hai Commune ChairmanNguyen Van Hoat said that the locality is home to more than 100 homestay facilities with many having gone on sale over the past year. However, since late 2020, only two have been bought.