Central city's real estate market still holds great potential.
Despite there being no clear changes in Quarter 1 the residential sector in particular and Da Nang’s real estate market in general remain attractive to property investors because the city now holds competitive advantages in real estate development, according to the latest report from Savills released on May 7.
In Quarter 1 there were no new villa or apartment projects. The villa stock was stable at 927 from 16 projects; unchanged since 2012. Compared with the second half of 2014, the primary market had eleven projects with 395 dwellings, down 5 per cent, and the secondary market had 16 projects with 532 dwellings, up approximately 4 per cent.
Villa Performance in Quarter 1
Meanwhile, there were approximately 3,100 apartments in stock from 14 projects. There were some 678 units from 12 projects in the primary market, down 14 per cent against late 2014. The secondary stock consisted of 2,431 units from 14 projects, up approximately 49 per cent against the second half of last year.
Apartment Performance in Quarter 1
Despite no signs of any increases, the residential sector is still an attractive destination for property investors. According to Ms. Do Thi Thu Hang, Head of Research at Savills Hanoi, Da Nang’s real estate market is still in a process of adjustment but is still considered to have potential because it now holds a competitive advantage.
Such advantages include its international airport welcoming many direct flights, as well as it having golf courses, casinos and many large scale entertainment centers, in addition to its beautiful coastline and close vicinity to heritage sites in central Vietnam. “With the Amended Housing Law to take effect from July 2015 it is expected that there will be new demand coming,” Ms. Hang said.
Da Nang previously welcomed its first five-star villas, Ocean Villas, invested by VinaCapital with capital of $57 million. VinGroup has also decided to invest in the Ngu Hanh Son Vinperal Villa project, with 134 units, construction of which is expected to start in the second quarter of this year.