Living based on “real housing demand”
These days, Mr. Tran Phuoc Hung, the office of Tam Thanh Thoi real estate (Ngu Hanh Son district, Da Nang city) has received many calls and messages for advice to get an affordable land.
According to Mr. Hung, at this time, the Da Nang real estate market is not really bustling but there have been transactions. In particular, this is the “golden” time for people with real housing needs to “spend money”.
“Since the beginning of 2024, I have sold 3 plots of land, priced depending on the segment, ranging from over 1.2 to 3 billion VND. On March 18, I will notarize a plot of land for over 1.6 billion dongs for a customer,” Mr. Hung added.
Resort real estate (condotel, villas…) are hard to have new supply. Photo: N.T
In the report on the real estate situation in Quang Nam – Da Nang in 2023 and the forecast for 2024 by the market research unit SPE.R, it is also assessed that Da Nang real estate is living based on “real housing demand”.
It is worth noting that product lines such as shophouses, resort villas, and condotels will continue to face difficulties in liquidity.
Along with that, shophouses in Da Nang, Dien Ngoc ward (Dien Ban town, Quang Nam province) are still deserted and have not shown signs of investment exploitation. This makes this product line become devalued, reducing the quality of construction and losing the trust of buyers.
For condotel products, many investors no longer commit to interest payment, making many investors suffer losses, “not being able to hold, not being able to sell”.
Mr. Tran Trong Vu, co-founder of SPE.R, said that in 2024, land will have limited new supply, second-hand products will still dominate. Apartments and condominiums will have a relatively abundant new supply, primary selling prices tend to increase, secondary market prices are stable.
Rental apartments, villas… are product groups that have been noticed since 2023, they will still be the trend in 2024 due to stable cash flow, limited supply, and rental-based price growth.
Resort real estate (condotels, villas…) will have a hard time finding new supply, still facing great difficulties in liquidity, exploitation efficiency is still at a low level, especially for condotels.
Liquidity is falling into secondary land, condominiums
According to the report by SPE.R, in 2024, the Northwest area – Lien Chieu (Lien Chieu district, a part of Hoa Vang district) has a relatively large new supply compared to other areas, but liquidity will mainly fall into secondary products.
The difficult types of products in 2024 are shophouses, luxury apartments, villas; the favored products will be secondary cheap land.
FPT Plaza 1 and 2 apartment complexes panorama (in Ngu Hanh Son district, Da Nang city). Photo: N.H
For the Hoa Xuan – Cam Le area (located in Cam Le district and the West of Ngu Hanh Son district), the new supply in 2024 will focus on villas and shophouses.
However, liquidity will mainly fall into secondary land products serving real housing needs and investment. Clear price growth will start from the middle of Q2, stronger liquidity by the end of the year.
For the Nam Da Nang area (South of Ngu Hanh Son district and the projects in Dien Ngoc ward, Quang Nam province), the supply will focus on FPT Plaza apartments, with suitable prices and stable liquidity like in 2023. Secondary land market liquidity is relatively low, still prioritizes low prices, has decreased deeply, and serves housing needs.
The Dien Nam – Dien Ngoc area will still face many difficulties in liquidity and price increase as confidence in legal issues and future potential is still very low.
This is also an area that depends on the general market like the Northwest, liquidity and price fluctuations will also be at a low level but more promising than 2023.
Regarding the potential of Da Nang and Quang Nam real estate in 2024, the co-founder of SPE.R said that the market will have a large supply of apartments in the near future when real estate investors are completing legal procedures and gradually opening sales from Q3.
In particular, Da Nang is the leading province in the country in terms of the number of social housing supply, affordable prices with over 15,000 units. In the first week of 2024, the locality has also publicly announced the sale of the first social housing. However, in reality, it still cannot fully meet people’s demands.
Explaining this issue, Mr. Vu said that social housing in Da Nang is currently mainly concentrated in the Lien Chieu area, while in South and Southwest of the city, there are almost no new projects…
“The Da Nang real estate market in 2023 continued to go through difficulties and challenges, however, it is forecasted to have more bright spots in 2024. The recovery of the real estate market will be difficult to make a breakthrough, but will be interspersed with many new opportunities,” Mr. Vu shared.
