Recently, the real estate market in Da Nang has received positive signals about supply and demand in the apartment segment, especially social housing apartments.

In the fourth quarter of 2023, real estate experts and researchers are expected to accelerate the recovery of the market thanks to a handful of positive moves such as removing obstacles in legal procedures for real estate projects, reducing lending interest rates, and speeding up capital disbursement.

The Saigon - Da Nang Investment Corporation-developed social housing project at the Bau Tram Lakeside Green Urban Area project in Hoa Hiep Nam Ward, Lien Chieu District.

Apartment segment starts recovery

According to the report on the residential real estate market in Da Nang and surrounding areas released by the DKRA Group Joint Stock Company, in the third quarter of the year, only the apartment segment recorded some positive signals, the remaining segments saw a significant decrease in both supply and demand.

Specifically, as for the land segment in Da Nang and surrounding areas, only 3 projects were opened for sale with a supply of about 54 plots, a significant decrease compared to the second quarter and the same period in 2022. The ratio of consumption to new supply reached 19% (about 10 plots), only representing 2% compared to the same period last year. Secondary liquidity was recorded at medium and low levels, with an average decrease of 8-10%.

Meanwhile, the apartment segment recorded five projects in Da Nang, providing a total of about 406 units to the market, 2.8 times higher than in the second quarter and 4.5 times higher in the same period in last year.

The overall market demand recorded a positive recovery as the percentage of consumption to new supply reached 57%, equivalent to 232 units, 3.6 times higher than in the second quarter and 5.4 times higher than the same period in 2022.

However, there are also many apartment projects that continue to postpone their opening dates to complete legal compliance according to regulations and wait for positive signals from the market at the end of the year.

Meanwhile, the townhouse and villa segments did not record new supply. Many projects in the segments continuously postponed sales implementation time due to the general influence of the market as well as unresolved legal bottlenecks.

The resort real estate segment continued to record no new supply for sale in the third quarter. Most of the current market supply comes from the inventory of previously opened projects, especially the Condotel segment having a number of secondary listings with prices reduced by 10%-15% compared to the contract price from customer groups using financial leverage.

According to forecasts from DKRA Group, in the fourth quarter of 2023, the supply of land segment in the real estate market of Da Nang and surrounding areas may increase slightly compared to the third quarter. Primary price level continues to move sideways. The secondary price level has not achieved a more positive signal than in the third quarter.

In the apartment segment, new supply may fluctuate at 300-500 units. New supply and demand of the townhouse and villa segment may increase slightly compared to the third quarter. Primary price levels continue to remain stable. Liquidity in the secondary market continues to move sideways. With resort real estate, it is expected that supply will continue to remain low, market liquidity will still face many difficulties and it is unlikely to have short-term mutations.

According to the report released by the Dat Xanh Real Estate Services JSC (Dat Xanh Services) on research on Viet Nam's residential real estate market in the third quarter and the first 9 months of 2023 in Da Nang, the supply mainly comes from existing projects. The number of new projects opened for sale and the transaction situation improved compared to the second quarter of 2023, mainly coming from The Sang Residence and Sun Cosmo Residence (Sun Group) projects with a new supply of apartments of just over 400 products. 

In the third quarter, the real estate market recorded no increase in actual transactions, but customer psychology has improved, the rate of customers searching for real estate increased, especially products serving real estate needs.

The Da Nang real estate market is showing signs of recovery. Photo: NAM TRAN

Property recovery expected in second quarter of 2024

The real estate market has reached the final stage of the recession and is now starting to go through the bottom, analysts forecast.

Dr. Pham Anh Khoi, Director of the Institute of Economics - Finance - Real Estate Research under the Dat Xanh Real Estate Services JSC, forecasted that in the fourth quarter of 2023, the real estate market will not have a sudden growth, but will definitely have better growth than with the fourth quarter of 2022. The property sector will begin to recover in the second half next year, he predicted.

Lawyer Nguyen Quang Tam, who is a real estate legal expert at the Institute of Real Estate Research and Training under the Viet Nam Association of Real Estate Brokers, remarked that his unit has been authorised by the municipal Department of Construction to train and issue certificates for real estate brokers.

“During the training process, we regularly and promptly convey current land law policies to organisations, individuals, investors, real estate brokers, buyers and sellers, with the aim to simultaneously improve their professionalism to meet the development requirements of the real estate market” he added.

He noted that, with regard to the purchase and sale of real estate formed in the future in Da Nang and Quang Nam Province, he regularly updated projects eligible for sale according to legal regulations to investors and brokers to avoid cases of mass lawsuits, complaints, and denunciations when buying real estate in projects that are not eligible for sale.

Reporting by NAM TRAN - Translating by M.DUNG