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Savills: Da Nang real estate in good shape in 1H

Released at: 11:26, 07/09/2017

Savills: Da Nang real estate in good shape in 1H

Illustrative image (Source: brightland.vn)

Real estate consultant releases report on Da Nang's real estate market in first half.

by Ngoc Lan

Savills has released a report on Da Nang’s real estate market in the first half of this year.

In the hotel segment, total supply from 86 three- to five-star hotels was approximately 9,400 rooms, with five-star the best performer.

Average room rates increased 11 per cent year-on-year and revenue per available room (RevPAR) was up 22 per cent year-on-year.

Over 1,300 four- to five-star rooms will enter the market in the second half.

The report noted that in the apartment and condotel segments, there was one newly-launched condotel project in the first half. Total apartment supply increased 3 per cent year-on-year, with one newly-launched project.

Condotel absorption was relatively high, at around 70 per cent. High and committed yields reached 12 per cent per year and the more recent developer buy-back commitments are increasingly resonating with buyers. Large condotel supply, mainly from domestic developers, is expected to the end of the year and into 2018.

Meanwhile, the apartment average absorption rate was approximately 33 per cent. Primary prices averaged $1,690 per sq m, down year-on-year. Two projects will launch 1,200 apartments by year’s end.

The second-home villa market saw high absorption in the first half. Total villa stocks were 801 dwellings, of which 169 were from the primary market. Ngu Hanh Son district was the largest supplier, with 728 dwellings, representing a 91 per cent share, followed by Son Tra district with 73 dwellings, or 9 per cent.

Market-wide absorption was 81 per cent, and seven projects were fully sold.

Fully finished villa land prices were from $650 per sq m to approximately $3,000. Forty-five dwellings will enter the market in the second half.

Da Nang continues to be one of the leading local destinations for domestic and international tourists, according to the Savills report.

There were 3.2 million visitors in the first half, up 33 per cent year-on-year. International visitors were up 72 per cent year-on-year, to 1.2 million.

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