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Hanoi elite swoop in on Da Nang property

Released at: 08:24, 14/06/2015

Hanoi elite swoop in on Da Nang property

People of means from capital and northern provinces major players in central city's real estate market.

by Thu Hoang

Rich people from Hanoi and the north have recently been picking up large amounts of property in Da Nang, adding some heat to the city’s real estate market during its recovery from long-lasting crisis.

According to figures from the Dat Xanh Mien Trung Company under the Dat Xanh Group, in the first five months of this year it sold 500 land lots, half of which were purchased by people from Hanoi. “The number of investors from Hanoi pouring money into property in Da Nang has definitely been on the rise,” said Mr. Tran Ngoc Thanh, CEO of Dat Xanh Mien Trung.

It seems that these investors have returned to investing in property as interest rates on bank deposits have become less attractive.

In line with the overall recovery in Vietnam’s residential market, Da Nang is also in better health these days, according to a CBRE report on the city for the first quarter. The market was more active, with new projects launched, changes in sales strategies being adopted by existing developers, and a positive attitude among buyers.

According to the report, in the first quarter new supply pushed up the average asking price at mid-end and affordable projects by 9.3 per cent and 3.2 per cent, respectively, quarter-on-quarter.

Price adjustments at existing units and high asking prices for units on upper levels at Fusion Suites saw average prices in the high-end segment rise to $1,696 per sq m, or 2.2 per cent higher than in the previous quarter.

In terms of sales activities, the market recorded approximately 50 transactions in the primary market, nearly double the result in the first quarter of 2014.

Investors, however, also appear to be more careful, recalling the bitters days of the city’s real estate market in the past.

During 2009 to 2011, speculators pouring money into property in Da Nang pushed up housing prices by three or four times compared with the initial price offered by developers.

Speculators also paid deposits on property in the city without giving due regard to legal ownership papers.

According to a CBRE report released in 2011, 80 per cent of purchases of apartments and villas in Da Nang at that time were made by people from Hanoi. Shortly after, when real estate in Hanoi and Ho Chi Minh City both went into freefall, property in Da Nang was also significantly affected, with prices falling by 30-50 per cent. 

Source: Vietnamnet

  • TAGS
  • richer
  • Hanoi
  • buy
  • property
  • Da Nang
  • speculator

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