In the first months of 2024, the real estate market in Da Nang was still quite gloomy, with low transactions. The already-approved adjustments to the Da Nang Master Plan in some urban areas bring many expectations to promote the local real estate market to rebound for the rest of 2024.

The adjustments to the zoning plan along the Han River and the eastern bank is forecast to create a boost for Da Nang real estate. Photo: NGUYEN THUAN

Mix of light and dark colours

It can be said that the Da Nang real estate is quiet due to the general impact of the entire ‘post-COVID-19’ market as well as the fluctuating world economic situation and decline in many large countries that are Viet Nam’s important economic economies such as the the US, EU and China.

However, it is also noted that there are many positive points worth hoping for from the land lot market which bottomed out in the first and fourth quarters of 2023 with a decrease of 20-25% in the southern area of Da Nang, belonging to large projects such as the Hoa Xuan urban area, the southern part of Hoa Xuan, FPT, the south part of Cam Le.

Likewise, in the northwestern part of the city, prices suffered a plunge of 30-40% from the ‘peak’ time in 2022 in such projects as Lakeside, Golden Hill and Kim Long. Along with that was a low liquidity level of only about 15-20% compared to the same period in 2022.

By the fourth quarter of 2023 and early 2024, the market grew slightly again with an increase of VND 200-400 million/product and liquidity was more abundant, reaching nearly 50% compared to the level recorded in 2022. Through recording transaction data, it is believed that Da Nang land prices are moving ahead to surpass the bottom in the next stage.

With regard to the apartment market, secondary apartment prices in early 2023 decreased by nearly 20% compared to the 2022 period and are maintaining a flat price market without recording a return to growth. When it comes to liquidity, the number of transactions is not high, mainly serving real housing needs and buying and renting needs. The positive point is that rental prices now remain the same as in 2022 and do not decline like other real estate segments.

At the end of 2023, the Da Nang administration approved a zoning project along the iconic Han River to attract more international tourists, creating green space for residents and tourist attractions. This has brought positivity to projects that have been and are being implemented in this area.

Typically, Sun Group’s The PANOMA (Cosmo) project located right in the center of this planning successfully sold more than 70% of the products in just the second half of 2023. The shophouses (commercial townhouses) is still at a deep discount and there are no clear signs of stopping the decline. 

As surveyed at projects such as Lakeside Inffinity, Me Linh, Pavillon, Nguyen Sinh Sac and Le Van Duyet, the prices decreased by 30 - 40%  The number of apartments with residents is very small, only 5-10% of each project and the rental prices only yield 1.5-2%/year and gradually become unattractive to investors.

Da Nang real estate is forecast to grow more in the next period. Photo: NGUYEN THUAN

The driving force for major change comes from planning

According to many predictions, the real estate market in Da Nang and surrounding areas continues to be quiet in most segments. However, many macro policies of the national government and Da Nang authorities provide motivation for the real estate market recovery.

Since the beginning of 2024, the Da Nang government has been disbursing funds for key projects that bring big changes to the real estate market. Firstly, work started on the Lien Chieu Port project and the infrastructure serving the port, a road directly connecting Lien Chieu Port with the National Highway 1A, the Hai Van - Tuy Loan bypass at the end of 2022.

Secondly, the planning of the subdivision along the Han River and the eastern bank has been kicked off with a total area of up to 6,644 hectares with multiple purposes such as a central urban subdivision; a riverside and coastal tourism gateway; national and international conference centres; a financial centre High quality education and a training centre in the central region; cultural - sports and medical centre. The total population of the entire subdivision by 2030 is likely to be about 484,000 people.

Thus, major changes in the city's planning is contributing to changing Da Nang’s socio-economic face, creating a driving force to promote the key economic development of tourism - trade - services. This will create a big impact on the Da Nang real estate market. Real estate in this area will quickly recover and grow, especially land real estate and products serving accommodation and tourism.

As for next push, at the end of February 2024, the FPT Da Nang Urban Joint Stock Company (FPT City) launched the development of the FPT Plaza 3 apartment building in FPT Da Nang Technology Urban Area. A total of nearly 1,300 apartments in 2 buildings, FPT Plaza 1 and FPT Plaza 2, were previously put into use, creating a highlight of a potential modern ecological urban area for the southern part of Da Nang.

In his assessments about the current market, Mr. Tran Trong Vu, who now works at the Da Dang - Quang Nam real estate market research unit, said: "2024 is still a difficult year for real estate when doing business. The world economy has not yet recovered, but there will be more bright spots than in 2023.

The recovery of the real estate market will hardly create a breakthrough, but will be intertwined with many new opportunities. As noted, the level of recovery will be different in each segment at each time. Most segments will continue the trend of reducing supply, focusing more on product quality and pushing market demand, focusing on near-central areas to serve security needs.

Reporting by NGUYEN THUAN - Translating by A.THU