Central Coast – The “Core” of the New Real Estate Cycle
The year 2024 marks a promising new chapter for the real estate market as positive signals begin to reshape investor confidence and expectations. Notably, the real estate market in the coastal provinces of Central Vietnam is expected to be the “core” of this new cycle. This assessment was shared by a representative of Batdongsan.com.vn at the largest real estate exhibition of 2024, “Prosperity Partnership in the New Cycle,” organized by Regal Group.
In the Da Nang real estate market, apartments are leading in terms of both price growth and level of interest. Source: Batdongsan.com.vn
Da Nang, in particular, has been appraised for its impressive economic growth, vibrant tourism industry, and the prospects of a free trade hub. It is a city that has always been sought after by investors due to its attractive real estate price appreciation potential. In Q3 2024, apartment prices in Da Nang witnessed a 95% increase compared to Q1 2023. This surge can be attributed to the emergence of numerous high-rise apartment projects in the area.
Leading the pack with a nearly 600% increase in interest is the real estate market in Quang Binh, which is showing strong signs of growth thanks to inter-regional trade infrastructure, tourism advantages, and large-scale international projects. Among these, the Regal Legend project (Bao Ninh 1 Urban Area) stands out with its groundbreaking constructions and modern infrastructure connections, creating a new landmark in Dong Hoi.
The arrival of the first tower, Regal Residence, has propelled Dong Hoi’s real estate market to new heights, making it an exciting new investment destination. Source: Regal Group
In Thua Thien Hue, interest in private homes and land lots saw a significant spike in Q3 2024. The province’s real estate and tourism potential is further bolstered by its status as a centrally-governed city and a distinctive heritage urban area of Vietnam. The real estate market in Quang Nam is also showing clear signs of recovery, especially in the land lot segment. The provincial government is focusing its resources on accelerating urbanization, creating favorable conditions for the real estate market.
Binh Dinh is another province taking the lead in infrastructure development to enhance the competitiveness of its real estate market. Meanwhile, in Phu Yen, interest in private homes and land lots is experiencing a positive outlook and is expected to increase. According to the master plan, by 2030, Phu Yen aims to become a center for green maritime economy coupled with high-quality tourism and services.
These factors, along with the advantages of natural landscapes, a thriving population, and unique cultural heritage, will present opportunities for the recovery and development of the Central Coast real estate market.
Increased Interest and Selling Prices Across All Property Types
According to the latest report from Batdongsan.com.vn, the real estate market in most Central provinces witnessed a surge in interest in Q3 2024 compared to Q1 2024. Notably, Da Nang and Quang Binh experienced significant increases in both interest and selling prices across all property types.
Central coastal cities have seen a notable increase in interest for apartments. Source: Batdongsan.com.vn
For apartments, the central coastal cities have experienced a notable increase in interest. In Q3 2024, Quang Binh led the demand for apartments with a 516% increase compared to Q1 2024, followed by Thua Thien Hue (65%), Da Nang (45%), and Binh Dinh (23%).
Selling prices for apartments in Da Nang and Quang Binh have also increased by 32% and 41%, respectively, in the last two years. Notably, searches for Da Nang apartments by Hanoi-based investors have grown significantly, accounting for a large proportion and increasing by 90% in Q2 2024 compared to the previous quarter. This partly demonstrates the appeal of the Da Nang market to investors from other provinces.
For private homes and land lots, interest has increased, but selling prices have fluctuated and have not fully recovered. Da Nang recorded a 12% increase in land lot selling prices compared to Q1 2023, while house prices witnessed a significant surge in interest in Phu Yen and Binh Dinh. Selling prices for houses in many Central provinces improved in Q3 2024, with increases ranging from 2% to 53% compared to Q1 2023.
The popularity of Central coastal projects was evident at the real estate exhibition introducing Regal Group’s key projects for 2024-2027, attracting nearly 1,500 investors nationwide. Source: Regal Group
Explaining this phenomenon, Mr. Ha Nghiem, Director of the Da Nang Branch of Batdongsan.com.vn, attributed it to the improving and developing infrastructure in Central Vietnam, which acts as a crucial catalyst for the growth of the tourism and real estate industries. This lays the foundation for the region to become a leading tourism hub in the country.
Additionally, according to the Consumer Psychology in Real Estate Report for the second half of 2024 by Batdongsan.com.vn, project legality and construction quality are two critical factors when choosing a project. Therefore, in today’s dynamic market, developers who excel in legal compliance, provide quality products, and offer potential for good cash flow will have a distinct advantage in attracting investors.
