Savills report reveals most residential transactions Da Nang for investment and leasing.
With the presence of Premier Village Da Nang Resort and Naman Residences, the residential market, especially the villa segment, in Da Nang in the second quarter continued to be vibrant with a large supply outlook for the second half of the year, according to the latest report from Savills released on September 15.
The report stated that two villa projects - Premier Village Da Nang Resort and Naman Residences - supplied 150 dwellings in total. The villa stock in the city was 890 units from 16 projects. The primary market comprised 450 dwellings from ten projects, accounting for 50 per cent of total supply.
One new apartment project launched also provided 100 dwellings. There were 711 units from 13 projects in the primary market, up 5 per cent against the first quarter.
The absorption rate for villas and apartments also increased remarkably in the second quarter. A 12 per cent rise was recorded in villas due to the good sales performance of the Premier Village Da Nang Resort, seeing an average villa price of VND27.5 million ($1,210) per square meter, up 9 per cent quarter-on-quarter.
Meanwhile, the apartment market continued to show positive signs with an absorption rate of 18 per cent. The average price fell 5 per cent quarter-on-quarter due to lower prices in a new project in Son Tra district.
Projects whose developer had a strong reputation and were in close proximity to the beach and the city center generated good sales in the quarter. Most transactions in Da Nang were not for residing but for investment and leasing, according to the report.
With sound operations, Savills predicted that from the second quarter onwards 1,350 dwellings from 13 villa projects and 17,600 units from 21 apartment projects will enter the market. While Son Tra district continues to have the largest future villa supply, Hai Chau district remains the top apartment supplier, with a 75 per cent market share.