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Property

Commercial segment flourishing in Da Nang

Released at: 09:02, 05/01/2016

Commercial segment flourishing in Da Nang

Latest Savills report reveals a burgeoning commercial segment in central city.

by Quynh Nguyen

The commercial segment in Da Nang’s real estate sector saw a prosperous third quarter of 2015, especially retail, with rents and occupancy rates all increasing quarter-on-quarter, according to the latest report from Savills on the central city’s real estate market, released on January 1.

The report also put total retail sales in the first nine months of 2015 at approximately VND55 trillion ($2.42 billion), up 16.8 per cent year-on-year.

Total retail stock was 167,000 sq m; stable quarter-on-quarter. Average rents increased 7 per cent quarter-on-quarter due to higher rents being achieved at Vincom Ngo Quyen and Indochina Riverside Tower. Occupancy in Hoang Anh Gia Lai Lake View and Nguyen Kim Da Nang Supermarket both increased. Average occupancy increased by 1 ppt quarter-on-quarter.

Supply in the office segment, meanwhile, reached 85,000 sq m, a decline of 2 per cent quarter-on-quarter, as Trung Ky Plaza closed for renovations. Average rents were up 2 per cent quarter-on-quarter. Grade A average rents increased 7 per cent quarter-on-quarter and Grade B was up 4 per cent, while Grade C saw a 2 per cent decline.

Average occupancy reached 87 per cent, up 5 ppts quarter-on-quarter. The number of newly-established enterprises is considered to be one of the factors behind the increasing office supply.

According to the Da Nang City People’s Committee, in the first nine months of 2015 there were 2,393 newly-registered enterprises, up 38 per cent year-on-year, with registered capital of over VND8.6 trillion ($378.4 million).

Regarding the hotel segment, stock increased 7 per cent quarter-on-quarter due to the official ranking of four hotels: three four-star hotels and one three-star hotel. Average occupancy was up 3 ppts quarter-on-quarter, to 77 per cent. The average room rate (ARR) increased 8 per cent year-on-year.

Meanwhile, RevPAR grew 13 per cent year-on-year. ARR and RevPAR increased across all grades quarter-on-quarter and year-on-year. According to the Vietnam National Administration of Tourism, there were 1.5 million arrivals to Da Nang in the third quarter, up 24 per cent year-on-year.

  • TAGS
  • commercial
  • retail
  • hotel
  • office
  • Da Nang

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