Danang is rapidly emerging as Vietnam’s next economic hub with a slew of large-scale infrastructure projects, creating strong potential for urban expansion, industrial development, and high-value real estate. The city’s real estate market is entering a new cycle of growth, according to experts. However, this cycle depends on the implementation of policies specific to Danang as well as general land and real estate laws.
In the first half of 2025, the Danang market sold approximately 1,400 apartments.
Market Positive Recovery
Danang witnessed limited new apartment supply during the 2021-2023 period, as the market entered a quiet development cycle. However, since the beginning of 2024, the market has been recovering with positive growth momentum continuing into 2025, with approximately 1,100 new apartments released for sale. The primary market supply exceeded 4,000 units, with an absorption rate of 54%.
The average primary apartment selling price in Q2 2025 reached VND 77 million/sqm. According to Do Thu Hang, Senior Director of Advisory and Research at Savills Hanoi, the high average primary selling price in the market is mainly due to the prime locations of new projects, developed by reputable investors with full amenities and upgraded delivery standards.
Customer Base Structure
The Danang apartment market attracts various customer groups, including active investors from Hanoi and Ho Chi Minh City, especially in the luxury segment. Meanwhile, local residents prefer mid-range projects in convenient locations for long-term living.
Additionally, the market has gained interest from customers in many other provinces due to increased employment, investment, and quality of life opportunities. The administrative merger of Quang Nam province into Danang city not only expanded the urban boundaries but also marked a significant turning point in the region’s housing and infrastructure development.
Addressing concerns about potential future apartment supply outpacing actual market demand, Ms. Hang emphasized the need for careful consideration based on product characteristics, location, and timing of development. She noted that the sale of approximately 1,400 apartments in the first half of 2025 is a positive sign, and with the official merger with Quang Nam, Danang now boasts the country’s longest coastline, exceeding 215 km. This facilitates the connection of development areas, fosters the formation of new growth poles, diversifies real estate products, and enhances the city’s appeal to investors and homebuyers.
Furthermore, the new supply in the second half of 2025 through 2027, with approximately 12,300 new apartments from 19 projects, reflects developers’ confidence in the market’s recovery and long-term growth potential.
A range of macroeconomic factors also positively support the market, such as the recent approval of the Free Trade Area and the International Financial Center in Danang. Ms. Hang assessed that the Danang apartment market is still in the early stages of recovery, with supply and demand at initial levels. As the macroeconomic foundations strengthen, the market’s growth potential in the medium and long term is significant, especially with continued improvements in infrastructure, policies, and investment attractiveness, thereby boosting housing and real estate demand across the board.
While apartments are a relatively new product in Danang, they have been studied and developed for several years. Ms. Hang advised investors to consider location, legal framework, and developer reputation. For long-term living, choose projects that offer convenient transportation and are located in central or coastal areas. For investment or rental purposes, pay close attention to the developer’s operational capabilities, the completeness of amenities, and the ability to attract foreign tourists and experts.
With its infrastructure advantage, Danang operates two airports – Danang and Chu Lai, providing numerous connectivity and economic development opportunities. This is also a significant advantage for projects targeting short and medium-term rental customers, especially apartments near the beach, city center, or major transportation routes.
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