Unreasonably high prices of real estate across Da Nang are now falling after a ‘land fever’ spreading rapidly several months ago.

Da Nang’s property market is expected to bounce back from the current slowdown.

Several months ago, land prices skyrocketed in burgeoning urban areas which boast synchronous infrastructure systems, and in new residential areas, industrial parks, and already planned resort areas.

According to many domestic real estate experts, the property ‘bubble’ was mainly attributed to the rapid growth of the national Gross Domestic Product (GDP), and the loose credit which is the practice of making credit easy to come by, either through relaxed lending criteria or by lowering interest rates for borrowing.

One reason is that land was speculated as most of the land buyers are speculators who purchase and do nothing but wait for a chance to resell the land plots in the hope of reaping the highest possible profits.

The high demand for land purchases several months ago was also attributed to rumours of the implementation of large-scale projects in the city.

Currently, the ‘land fever’ is being cooled down; however, the prices of real estate are falling by only between 30 and 50 million VND, and this demonstrates the fact that the city’s real estate market is maintaining sustainable and stable growth.

According to an experienced real estate expert, the current real estate slowdown would last until late this year, and early next year would see this lucrative aspect bouncing back with more active engagement by domestic and foreign investors thanks to its great potential.

At present, Da Nang nationally ranks 13^th in term of population density, whilst its total area ranks 59^th. 

In particular, the city is seeing an upward trend in the number of immigrants from other localities nationwide, whereas there are no signs of increasing supplies of properties from now until late this year. 

Moreover, the city is seeing a growing number of land buyers, mainly from such big cities as Ha Noi and Ho Chi Minh City. They show their keen interest in pouring their money into Da Nang which boasts impressive economic growth, the great tourism development potential, and of course, the top priority given to promoting the infrastructure progress.

Currently, the city is focusing on implementing its key campaign ‘2018: The Year of Investment Promotion’.

Accordingly, there are a large number of urban infrastructure development and tourism projects which are either under construction or will be deployed in the coming time. 

These include the ongoing the 2^nd stage of the Tien Sa Port upgrade project, the soon-to-be-built Lien Chieu Port, the Ngu Hanh Son Cultural and Historical Park, a project for connecting Vo Chi Cong with Tan Tra Beach, and an array of urban traffic improvement projects.

These projects are expected to partly bring more positive changes to the city’s urban face.

The advantages pointed out above are expected to make the Da Nang property market more inviting to domestic and foreign investors, thereby leveraging this lucrative aspect to bounce back and thrive in the coming time.