The Danang Property Market: A Surprise Surge in Transactions, Up by 60%

According to DKRA Consulting, the Da Nang real estate market and its vicinity in August have not recovered evenly across all segments.

In the land segment , the primary supply in August 2024 did not fluctuate much from the previous month. The projects are mainly located in Quang Nam and Da Nang. Thua Thien Hue province continues to face a scarcity of supply.

The overall demand for the land market remains low, ranging from 2% – 15% of the total primary supply. Da Nang leads the market consumption, accounting for 71% of primary consumption. Transactions are mainly allocated to products with completed infrastructure and legal documents, priced below VND 50 million per square meter.

The apartment segment was also the brightest segment in the Da Nang market and its vicinity last month. Specifically, the primary supply increased by 8% from the previous month, mainly in Da Nang. Notably, primary consumption increased by 59% from the previous month, concentrated in the districts of Da Nang. Thua Thien Hue and Quang Nam continue to lack new supply.

The significant improvement in primary consumption was mostly due to the next phase of a project launch in Son Tra district, Da Nang. Primary and secondary selling prices remained stable, and secondary transactions focused on projects that have been handed over, with clear legal documentation and convenient transportation to the city center.

According to DKRA Consulting, in the next month, with some investors stepping up their communication efforts in preparation for new launches, there could be improvements in new apartment supply, focusing on the Ngu Hanh Son district area.

The shophouse/villa segment : The supply was recorded to have decreased by approximately 5% from the previous month, but it increased slightly by about 9% from the same period last year. Da Nang is the leading locality in the market regarding total supply and primary consumption, accounting for 48% and 100%, respectively.

The overall market demand remains low, equivalent to only 3% of the previous month. Many projects have closed their carts to adjust their sales policies, which has also caused the market liquidity to be subdued this month.

In this segment, Da Nang continues to lead the market, accounting for 48% of the total supply and 100% of primary consumption in the month. Primary selling prices tend to remain stable compared to the same period. Bank support policies, interest rate incentives, and grace periods are still widely applied by many investors.

The secondary market for shophouses and villas recorded a price decrease of 4% – 8% compared to the end of last year. The decline mainly focused on groups of long-term projects with slow construction progress and incomplete legal documentation.