Since the beginning of 2024 until now, the Da Nang real estate market has changed positively with many projects starting construction and resuming operations. The total number of real estate transactions increased from the same period last year, especially in the second quarter. The city is continuing to remove difficulties and obstacles in an effort to promote the real estate market.

In the first 6 months of 2024, the Da Nang real estate market has shown signs of improvement. Photo: HOANG HIEP

Rise in transaction numbers

According to a report released the Da Nang Department of Construction on the housing situation and the real estate market in Da Nang in the second quarter of 2024, the da Nang People's Committee has carried out the tasks assigned by the Vietnamese government on a number of solutions to promote the real estate market to develop in a sustainable manner, focusing on removing difficulties and obstacles facing businesses and people in implementing real estate projects across the city.

Thanks to that, in the first half of 2024, the Da Nang real estate market has shown signs of improvement with many projects starting construction and resuming operations.

Accordingly, the municipal Department of Construction has granted construction permits to many new commercial housing projects such as Capital Square 2 Urban Area, Han River Tourist Service Area, Apartment Complex on HH3 land in the mixed-use land east of Tran Hung Dao Street, Olalani Riverside Tower Resort and Luxury Apartment and MIA Plaza Apartment Complex.

In the second quarter of 2024, a total of 3,618 apartments and individual houses were traded, up by 71% from the first quarter of 2024 and up by 62.6% from the same period in 2023.

The municipal Department of Construction has approved 10 applications eligible to rent social housing and 316 others eligible to buy social housing, contributing to solving the housing needs of beneficiaries of social housing policies according to regulations in this quarter.

However, according to a report on the residential real estate market in Da Nang and its vicinity in the second quarter of 2024 announced by DKRA Consulting (a brand of research and development consulting services of DKRA Group Joint Stock Company) on July 18, most of the supply of residential real estate in the Da Nang market and its vicinity came from inventory of old projects, the market has not recorded any active debut of new projects.

Except for the apartment segment, the overall demand for the remaining segments has not shown any signs of a strong breakthrough.

Specifically, in the segment of land lots, the overall demand in the whole market remained low, transactions mainly arose in the group of products with completed infrastructure and legal documents, implemented by reputable investors in the market.

The apartment segment recorded a 2.5-fold increase in primary supply compared to the same period last year with 16 projects launching sales, supplying the market with a total of about 2,484 apartments, most of which were concentrated in Son Tra District), and the primary consumption rate recorded a more positive signal, reaching 52% of the total primary supply, equivalent to more than 1,300 apartments.

The Da Nang real estate market has shown positive changes with many projects starting construction and resuming operations. A housing construction project in the city is nearing completion. Photo: HOANG HIEP

Increasing supply and demand

As forecasted made by DKRA Consulting, in the third quarter of 2024, the new supply of land in Da Nang and surrounding areas increased slightly from the second quarter, mainly in Da Nang and neighbouring Quang Nam.

Demand in the land segment is expected to increase slightly at the end of the year and the primary price level will not fluctuate much. In the apartment segment, new supply in the third quarter is expected to remain at the same level as in the second quarter of 2024 with the primary selling price level not having many fluctuations or possibly slightly increasing due to input cost pressure.

According to DKRA Joint Stock Company Investment Director Vo Hong Thang, as a whole, the real estate market in the past three months has not recovered evenly in all segments. However, the market still received many positive attractions from policies, laws and traffic infrastructure.

In the third quarter, the residential real estate market in Da Nang and surrounding areas will have clearer recovery prospects, depending on each segment.

The Land Law, Housing Law, Real Estate Business Law, and Credit Institutions Law coming into effect from August 1, 2024 will remove many difficulties and obstacles for projects and are expected to bring many positive changes to the real estate market in the coming time.

The Da Nang Department of Construction will task itself with regularly monitoring and reminding investors to implement project progress as previously scheduled, recommending organisations and individuals participating in real estate transactions to carefully study the legal status of the project.

In addition to granting new construction permits, the cited department has appraised the feasibility study reports for investment in many new real estate projects. With the city completing the approval of urban zoning plans, many real estate projects will continue to be appraised, granted construction permits, thus supplementing supply as well as promoting the real estate market.

According to Director of the Department of Construction Phung Phu Phong, real estate, commercial and social housing projects in the city have been added into the Da Nang Master Planning and specified in zoning plans, urban development, housing development programmes and plans. This is an important basis for the city to deploy or call for even more investment, requiring investors to implement housing projects according to planning, programmes and plans.

Reporting by HOANG HIEP - Translating by A.THU, P.TRA