Da Nang is now seeing a downward trend in the number of real estate trading transactions because the prices of properties across the city have been falling after a ‘land fever’ spreading rapidly several months ago.

Given the rapid growth of service and tourism in coastal areas, the prices of land lots there, despite a slight decrease, are now still much higher than in other local locations.

Three months ago, as many as 100 makeshift real estate trading offices were set up along the pavements of internal routes in an eco-urban area to the south of Cam Le District’s  Hoa Xuan Ward.

The majority of these officers’ owners act as an intermediary between parties in real estate sale, transfer, lease, sublease and lease purchase transactions. But now, these offices are seeing a few clients.

Meanwhile, many real estate trading floors where real estate sale, transfer, lease, sublease, or lease purchase transactions are carried out are also facing the same slowdown situation.

In a similar vein, the number of clients who come to notary offices across the city for property transactions-related paperwork is now still modest.

Many local real estate experts noted that the ongoing excess supply of properties is now pushing land prices down in many areas.

Many makeshift real estate trading offices located along the pavement of a street in Cam Le District seeing a small number of clients

Mr Nguyen Than Binh, a property broker touting for business in the Hoa Xuan eco-urban area said, between 12 million VND and 14 million VND per m2 is now set for land lots along 7.5m-wide internal routes at this venue, down between 1 million VND and 3 million VND against April.

However, given the rapid growth of service and tourism in coastal areas, the prices of land lots there, despite a slight decrease, are now still much higher than in other locations.

The ‘land fever’ reported in March and April this year is mainly attributed to the allure of many international large-scale events held from late last year until early this year, including the Da Nang Investment Forum 2017, the APEC Economic Leaders’ Week 2017, and the ‘Talk of Spring 2018’ programme.

Of note, before, during and after these important events, the city authorities made appeals for domestic and foreign investment in such large-scale projects as the deep-sea Lien Chieu Port, a railway route connecting Da Nang with Hoi An, the expansion of the area of the existing Xuan Thieu Tourist Area in Lien Chieu District’s Hoa Hiep Nam Ward.

Many property buyers are reluctant to buy land lots now because they believe that the land prices would be decreased in the coming time.

On the other hand, property traders are secure about the hope that this lucrative aspect would bounce back, and thrive in sustainable manner in the next months.

Mr Tran Van Quoc, a property broker from Lien Chieu District, said, 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 Da Nang Hi-tech Park, the soon-to-be-built Lien Chieu Port, and the Software Park No 2.

Furthermore, such world-class financial institutions and investment groups as the World Bank (WB), the Asian Development Bank (ADB), VinaCapital and Indochina highly appreciate Da Nang’s great real estate development potential.

It is hoped that investment inflows from foreign countries worldwide, especially Singapore, Japan and South Korea, would be poured into Da Nang in the coming time.

The city now has more than 50 real estate projects under construction, with over 50,000 apartments, penthouses and villas, and many such large investors as Vinacapital, Alphanam Luxury, SunGroup, Trung Nam, Hoa Binh, An Thinh and Vingroup.

Of this, the city has some 800 villas and 7,700 condotels. The market has seen a boom in a range of projects, from middle-income apartments to resorts, as well as diversified products such as condotel, officetel and shophouses.

The city’s Department of Construction said it had promulgated a document in April to correct property transaction and trading activities in the city. It said it would regularly update information about projects that were approved, and were eligible for sale in future on its official websites.