Properties in Da Nang are actually increasing in value thanks to efficiently promoting the city’s geo-economic postition, its strong urban and social infrastructure, rich natural resources. Da Nang has been named among 20 hottest property markets in the world, according to the latest buyer and seller survey by property group Savills Viet Nam.

Investors show keen interest in real estate projects in Da Nang’s coastal areas. IN THE PHOTO: the image of the Cocobay Entertainment and Tourism Complex and Co Co riverside area in Ngu Hanh Son District. Photo: TRIEU TUNG

Trends in buying a second home coming back

Da Nang has seen a boom in branded products for real estate, and trends in buying a second home are making a comeback, according to the latest survey results released on June 1 by Savills Vietnam, the largest international property manager in Viet Nam. Da Nang has been named among 20 best markets in the world for real estate investments in the Savills Vietnam rankings. In the context of post-COVID-19 recovery, second home market segment in Da Nang is expected to witness lucrative growth.

Da Nang has emerged as one of the leading destinations in the world for international brands in the field of resorts and hotels as the city is expected welcome additional high-end projects in this field over coming years. In 2022, Da Nang real estate market will thrive due to the participation and expansion of operations of international brands. The expansion of the flagship Marriott Hotels brand’s portfolio across Viet Nam is the most typical example. In addition, Da Nang will see a boom in resort projects and luxury apartments, including Fusion Resort & Villas, Le Méridien Resort & Spa and The Filmore.

According to Mr. Nguyen Duc The, the Senior Housing Sales Manager of Savills Vietnam, the participation and expansion of international hotel and resort brands in Da Nang showed signs of thriving, thereby heightening the city's position in the international arena and building its global reputation. The presence of international brands in Da Nang will help the city earn trust from foreign investors to pour money in their branded projects. Therefore, buying a second home in Da Nang will become more popular than ever. According to Savills Vietnam’s survey report, Da Nang has witnessed a jump in the number of international visitors after Viet Nam’s national government lifted coronavirus restrictions on international flights for fully vaccinated passengers and reinstated pre-pandemic entry and exit procedures for foreigners and Vietnamese living overseas from March 15. This will result in an increase in demand for second homes in Da Nang.

Second homes come in many different types of real estate, including houses, apartments, hotels or villas. According to Savills Vietnam, second home market segment in Da Nang is very attractive to investors as the city has created a favourable investment environment with attractive sales policies, and economic benefits of buying a new home depending on the types of real estate. The main target group seeking second homes in Da Nang will be retirees or international experts working in Viet Nam.

Apart from the purpose of living, buyers consider a second home as a channel to make a profit or accumulate assets in the long term. Therefore, they often look for high-end projects developed and managed by professional brands like Marriott or Accor. These brands will provide high quality services that commensurate with their values, thereby helping buyers feel more secure to rent out their properties when they donot want to stay in these homes. Da Nang’s real estate market is attracting great deal of attention from investors. Residential property transactions are now not busy but still carry out in the Hoa Xuan Eco-urban area, areas adjacent to Quang Nam Province, especially projects along the Co Co River.

Future prospects

Like other big cities in Viet Nam, such as Ha Noi and Ho Chi Minh City, Da Nang offers high-quality services and utilities that are commonly found in major cities but ensure amazing experiences for visitors, thereby making Da Nang unique and special, said Mr Nguyen Duc The from Savills Vietnam. This comes with the presence of international real estate brands in Da Nang, making the city more attractive to foreign investors.

Mr. Them highlighted the importance of sustainability in the process of the design and the performance of real estate projects to their long-term strategies. The focus must be on promoting strengths of each locality in developing large- scale projects in efforts to master growth momentum.

“The main purpose of tourists is to explore natural landscape in the places they visit. Therefore, project developers must give special attention to conserving the natural landscape and geography while carrying out their projects for sustainable development in harmony with nature”, Mr Them added.

Da Nang has launched Tourism Stimulus Programme 2022 themed ‘Enjoy Danang” which is an important driving force for the increase of domestic and international arrivals in the city. Hence, resort real estate, especially luxury segments, will benefit from this programme. Besides, Da Nang boasts huge potential for the development of high-rise buildings.

Da Nang targets to become a coastal tourism hub in Viet Nam and Southeast Asia which is a promising direction for the future of Da Nang’s real estate market.

Reporting by Trieu Tung – Translating by H.L