For the rest of 2022, the Da Nang real estate market is expected to be affected by the impacts of the COVID-19 pandemic. In reality, it can be realised that the halting of some tourism activities across the city due to the coronavirus waves over the two past years caused the real estate to lose its stimulus. However, with the encouraging signals in the segment of luxury apartments and branded residences recorded over recent times, the city’s real estate market is still on right track to keeps its development pace.

For 2022, the supply of land real estate in Da Nang will continue to grow in the southern part of the city. Photo: NAM PHUONG

High-class apartments, branded residences in great demand

According to a recent report released Savills Vietnam Co., Ltd, a real estate consulting unit, in Viet Nam, Da Nang leads supply; globally, it is one of the top 20 cities for branded residence projects. This hub of tourism is dubbed as a ‘resort paradise’ with many outstanding high-end apartment projects on offer at very reasonable prices and lots of development prospects in the future.

Investors are willing to spend money buying branded residences from reputable projects with the expectation of both owning the property and enjoying the space, utilities and international standard services as well.

Over the past time, Da Nang has been preparing to deploy a series of important infrastructure projects in a bid to generate a momentum to leverage Da Nang's economy and create a push for the local real estate recovery, in which luxury real estate will emerge as a highlight and potential development track for Da Nang.

In addition, the municipal administration is also completing the Da Nang Master  Plan for its major developments for the 2021 - 2030 period, with a vision towards 2050.

Under the plan, Da Nang will focus on developing itself on three main pillars: tourism, hi-tech industry and marine economy.

According to the Da Nang tourism recovery plan, the local real estate will also become more attractive and in the sights of investors.

Despite an unfavorable market due to the COVID-19 pandemic, with many businesses were hesitant to make the debuts of their projects, the Da Nang-headquartered Dat Xanh Mien Trung JSC confidently launched two high-end residential projects in 2021 and 2022, and both of them achieved impressive sales achievements.

Specifically, the Regal Pavillon- a shophouse project southwest of the Tuyen Son Bridge, Hoa Cuong Nam Ward, Hai Chau District brought Dat Xanh Mien Trung a revenue of more than VND1,500 billion VND after only one sales session.

Then, right from the beginning of the year, the Regal Victoria eco-villa project south of Hoa Hai Ward, Ngu Hanh Son District also record a similar achievement, marking the development of luxury real estate with very high international standard quality.

In anticipation of the return of investors, a number of high-end apartment projects are being offered for sale.

In early 2022, the Danh Khoi Group announced the development of Aria Da Nang project covering a total area of 7ha, comprising four hotel apartment towers with a combined total of 838 apartments, 28 Villa, 204 hotel rooms.

Located in an intersection on two 'wonder' road axes, one side facing Truong Sa road, the artery road of 'UNESCO heritage journey' and an expensive view towards Non Nuoc Beach. Aria Da Nang, BW Signature Collection By Best Western brings all its strategic elements together to become a resort masterpiece, luxury entertainment with 6 modern utility complexes and beautiful natural landscape

In a similar vein, The Filmore Da Nang project on the extended Bach Dang route (near the APEC Statue Garden) is a luxury apartment project that has been officially introduced exclusively by the Asia Bankers Club in Hong Kong (China).

There are 25 stories and 206 units in total, with 61 limited foreign quotas. The sizes of condos range from 484 to 1,259m² available in multiple options such as 1 BR, 2 BR, Dual-key condos, Sky Terrace, and 3BR loft. The condos are fully fitted and furnished, there will be a swimming pool, gymnasium and multi-purpose function rooms available to its residents. The estimated completion date is April in 2023.

In the city’s northwest area, invested by Asiana Paramount company under Gotec Land, the Asiana Luxury Residences Da Nang at land lot No A1, Nguyen Tat Thanh coastal street, Hoa Hiep Nam Ward, Lien Chieu District, is also open for sale and it is being well hailed by domestic customers.

Covering an area of more than 4,300m², the project consists of two 33-storey-plus-three-basement buildings offering a combined total of 487 luxury apartments with an optimal sea view.

The new development is also designed with sufficient utilities such as a commercial centre, a swimming pool, an outdoor playing area for children, a high-class restaurant and a campus for strolling.

Asiana Da Nang is expected to be completed in 2023.

The supply of land plots in 2022 in the city mainly develops in the area along the Co Co River. Photo: TRIEU TUNG

Land plots can only be traded according to real housing needs

In 2021, the consumption of residential land plots across the city was quite low than in 2020. The supply of land plots is mainly concentrated along the two banks of the Co Co River.

Also last year, trading activities on ‘the secondary market’ were less active and the liquidity was quite low.

The secondary prices’ recorded an average decrease of about 5-10% as compared to 2020.

Since November 2021 with the lifting of many COVID-19 curbs and the reopening of many services, real estate companies have also embarked on implementing previously-planned business strategies.

As revealed by the representative of a real estate company, the housing segment has increased by 3 - 5%.

In particular, the best deals are now recorded in the Hoa Xuan area based in Cam Le District at about 5% whilst the downtown areas are still lower. The number of potential customers is quite large and mainly secondary investors.

As surveyed, currently, the land plot in the northwest area adjacent to the Golden Hills urban area and in Hoa Xuan has increased slightly, about 5%.

Accordingly, the land of the Hoa Xuan urban area ranges from 20 - 21 million VND/m² whist plots with beautiful locations like riverside ones cost over 30 million VND/m².

Real estate products that meet customers' criteria such as legal transparency and well-implemented infrastructure are always well applauded by customers.

In terms of prices, although there has been an increase, investors and construction owners have not achieved high profits because the continuously soaring land fund exploitation and construction costs.

As predicted by many experts, the Da Nang real estate market will see a potential price hike in the near future.

Reporting by TRIEU TUNG – Translating by ANH THU