Da Nang’s real estate market remains subdued despite being a tourist hub

According to a report by DKRA Group, the new supply and primary segment of the apartment market in the central region saw a respective increase of 28% and 29% compared to 2022, mainly distributed in Danang.

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According to this agency, real estate in the Da Nang area and its vicinity is expected to see significant improvements from the second half of 2024.

In particular, the apartment segment has shown positive growth signals compared to 2022. Specifically, the DKRA Group report indicates that the primary market has 14 projects (one new project). Throughout 2023, the Da Nang area and its vicinity have a supply of 1,731 units, a 29% increase compared to the same period the previous year. Among them, 734 units have been sold, a 66% increase compared to the same period the previous year. The absorption rate reached 42%.

Based on observations, 100% of the primary supply in 2023 is concentrated in Da Nang city, with Ngu Hanh Son district accounting for the majority – up to 67%. The highest primary apartment sales price belongs to Hai Chau district with a price of 170 million VND/m2, followed by Ngu Hanh Son district with prices starting from 84.8 million VND/m2.

However, apartment transactions in Da Nang and its vicinity mainly involve mid-range projects with prices ranging from 50-60 million VND/m2 that have completed legal procedures and are developed by reputable investors with strong financial resources.

According to the DKRA Group, primary apartment prices are expected to increase slightly by 3-5% in future phases of the projects but are supported by various policies such as quick payment discounts, principal deferments, and interest subsidies from the investors. On the contrary, most sellers in the secondary market actively offer popular discounts of 2-6% compared to the beginning of the year to boost liquidity.

In the forecast for 2024, the apartment segment in Da Nang and its vicinity is expected to have a slight increase, ranging from 800 to 1,000 units, with the majority of the supply concentrated in Da Nang.

According to the Central Vietnam Real Estate Brokers Association, in 2023, the real estate market in Da Nang specifically and Central Vietnam in general still faces stagnation, with only a few projects being successfully sold but in limited quantity. Since the end of 2023, when interest rates cooled down and money gradually entered the market, mainly for ongoing projects, the market has begun to show more positive signals.

Except for the apartment segment, which has received some positive signals, most other segments in Da Nang and neighboring provinces are still in a downward trend, both in supply and demand.

It has been observed that from mid-November 2023 to the beginning of January 2024, in Da Nang, many large-scale real estate projects have been initiated and restarted after a long period of interruption due to the pandemic and financial constraints. Recently, Da Nang City has requested expediting the implementation progress, completing investment procedures, and commencing numerous project constructions in 2024.

According to experts, from the end of 2023 to the beginning of 2024, the removal of legal obstacles for real estate projects, reduced interest rates for loans, the effort of businesses, as well as the effectiveness of expected policies, will accelerate the recovery pace of the Da Nang real estate market and its surrounding areas.

SOURCEcafef
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