In the first half of 2023, the freezing of the real estate market made the liquidity low as compared to the same period in 2022. But now, the residential real estate market in Da Nang and surrounding areas are witnessing positive signals about supply and demand in some key segments, as well as expected by experts and real estate businesses to recover from the end of the third quarter of 2023 onwards.

A coastal corner of Da Nang. Photo: HOANG HIEP

According to a report on the residential real estate market in Da Nang and surrounding areas in the second quarter of 2023 recently released by the DKRA Group JSC, the supply and demand of the whole market improved in comparison to the first quarter of 2023 but still modest as compared to the first quarter of 2023 with the same period in 2022.

Specifically, in the land plot segment, the primary price level did not change but the secondary market recorded an average decrease of 12-14%.

With regard to the apartment segment, most projects are forecast to postpone the sale opening schedule in order to complete the legal process as well as wait for positive signals from the market in the near future.

In the second quarter of 2023, there were about 700 condotels still in stock.

According to DKRA's forecast, in the third quarter of 2023, positive moves such as the removal of obstacles in legal procedures for real estate projects, reducing lending interest rates and accelerating disbursement of public investment capital in Da Nang and surrounding areas are projected to accelerate the recovery of the real estate market.

The supply of land plots in Da Nang and surrounding areas is expected to grow up whilst the primary price level remains stable and there is no chance of price hikes in the short term.

The primary selling price continues to stay high in the apartment segment. Regarding resort real estate, investors will continue to be cautious in bringing new products to the market and liquidity in this market is expected to face many difficulties.

At the seminar ‘Deciphering policies and macroeconomics for the second half of 2023 and making projections for 2024" held by the Real Estate Research and Training Institute (TRI) in Da Nang on July 28, the Head of TRI, Mr. Nguyen Duc Lap said: “In my opinion, in the short term, the liquidity of the real estate market will be restored. Now, there are good liquidity signals but it is unlikely that real estate prices will skyrocket immediately. The recovery really depends on locations and product segmentation”.

Ph.D Can Van Luc, the chief economist of the Joint Stock Commercial Bank for Investment and Development of Viet Nam (BIDV), a member of the National Financial and Monetary Policy Advisory Council, acknowledged, real estate in Da Nang has made “movements” and transactions came back, especially in social housing that saw quick sales. The real estate market is gradually recovering but more drastic solutions should be taken in the coming time.

“Till date, I have enough grounds to say that the real estate market will recover very clearly at the end of the third quarter and the beginning of the fourth quarter of 2023 because by that time, the national government-released supportive policies and programmes will exert its effectiveness to the fullest. On the other hand, in the fourth quarter of 2023, the economic recovery momentum of Viet Nam and the world at large will also be clearer," said Mr. Can Van Luc.

Also according to this economic expert, real estate prices will decrease only 3 - 5% as a way of transaction stimulation and bank interest rates will follow a downward trend in the coming time. Investors will launch many support packages, promotions and quick legal settlement. However, at the present, loan interest rates are high, financial risks are still present so real estate buyers should not use financial leverage to make land purchase.

Reporting by HOANG HIEP - Translating by A.THU