After removing difficulties and obstacles in the market, capital and procedures, in the first nine months of 2024, Da Nang has increased construction and real estate trade activities, including 8,670 apartments and individual houses traded, a high increase compared with the same period in 2023, signaling positive growth of the whole real estate market.

Many real estate projects in the city are under construction, bringing about a boom in construction activities and the real estate market. The TTC Plaza Da Nang Complex Project is being focused on construction to ensure the progress of handing over the four floors of the podium to build the Aeon Mall commercial centre. Photo: H.H

Real estate business revenue reaches VND 3,217 billion

Since the beginning of 2024, the Da Nang Department of Construction has granted construction permits to 13 commercial housing projects combining trade and services (real estate projects) with a total investment capital of about VND17,000 billion. Many real estate projects in the area have been under construction, combined with the municipal Department of Construction actively inspecting and issuing notices of projects with future housing that are eligible for sale, which has promoted real estate business activities.

The Da Nang People’s Committee has directed the implementation of solutions to remove difficulties and obstacles, so from the first quarter of 2024, the Da Nang real estate market has begun to show positive signs with the number of real estate transactions being 2,117 apartments and individual houses.

In the second quarter of 2024, the city’s real estate market changed positively with many projects starting construction and resuming operations and the total number of real estate transactions reached 3,618 apartments and individual houses, an increase of 71% compared to the first quarter of 2024. In the third quarter of 2024, despite entering the low season of the market, the number of real estate transactions still reached 2,935 apartments and individual houses (equal to 81% compared to the second quarter of 2024), an increase of 38.6% compared to the first quarter of 2024 and an increase of 128% compared to the same period in 2023.

In addition, at the end of September and the beginning of October, the city had a number of housing projects formed in the future that were eligible for sale such as the Han River Apartment Complex project, Dong Do Group Joint Stock Company, FPT Palza 3 Apartment (FPT Da Nang Urban Joint Stock Company) which are expected to continue to promote the growth of the Da Nang real estate market.

In addition, according to the report on the socio-economic situation in the third quarter and the first nine months of 2024 of the Da Nang Statistics Office, in the first nine months of 2024, the total revenue from real estate business for consumption reached VND3,217 billion. Real estate business activities, after removing difficulties and obstacles in the market, capital and procedures also increased investment value with a growth rate of 19.4%, the real estate business price index went up by 4.59%.

According to the assessment of the Statistics Office, issues related to construction activities and the real estate market are gradually being removed from obstacles and difficulties and are expected to recover strongly in the coming time after resolving the frozen corporate bond market and the 2024 Land Law takes effect.

Along with that, it is expected that the Da Nang real estate market will receive positive developments when the city’s authorities coordinates with ministries and branches to actively implement Resolution No. 136/2024/QH15 of the National Assembly on the organization of urban government and pilot a number of specific mechanisms and policies for the city’s development, including the establishment of the Da Nang Free Trade Zone. The positive information, combined with positive signals from tourism activities, will increase investors’ interest in Da Nang real estate.

The Da Nang Landmark Tower Complex of Commercial Center and Apartments is currently under construction. Photo: H.Hc

Total construction production value reaches VND18,156 billion

From the first months of 2024, the Da Nang People’s Committee has focused on directing and urging the implementation of key and important socio-economic infrastructure projects and construction investment projects from private capital, in order to contribute to promoting the city’s economic growth.

Many large projects across the city achieved high implementation value in the first nine months of 2024 such as the Nguyen Kim Complex High-rise Centre project (TTC Plaza Da Nang), The Filmore apartment building, the Han River tourism service area, the social housing apartment complex at land plots B4-1 and B4-2 of Bau Tram Lakeside Green Urban Area (The Ori Garden).

In the second and third quarters of 2024 alone, the Nam O Eco-tourism Area project had a fairly high implementation value, about VND120 billion; the Han River Tourist Service Area project was implemented in two quarters, reaching about VND280 billion. Since the start of construction, the investment capital value of this project has reached nearly VND400 billion.

The total production value of the construction industry in the first nine months of 2024 at current prices was at VND18,156 billion. Compared to the same period in 2023, the value in the State-owned enterprise sector went up by 186.4%, the non-State enterprise sector up by 8.5%, foreign-invested enterprises up by 5.1%, and household construction up by 5.2%.

The investment value in the construction industry increased sharply with a growth rate of 215.6%. The prices of raw materials and fuels used for construction are tending to stabilise and decrease slightly compared to the same period in 2023, thereby helping to reduce pressure on the construction industry.

Notably, the added value of the city’s construction industry in the third quarter of 2024 has improved significantly, with an increase of 11.56% over the same period in 2023, contributing to an increase of 7.19% in the added value of the construction industry in the first nine months of 2024 compared to the same period last year. In particular, the construction of all types of houses increased by 9.17%%, the construction of civil engineering works climbed by 22.34% and specialised construction plummeted by 14.17%.

According to the municipal Department of Construction, currently in the city, construction is being accelerated on many large projects while many more are expected to kick off construction or enter the completion stage, especially large real estate projects on housing.

Accordingly, the added value of the specialised construction sector will go up, contributing to the continued growth of the construction industry as well as the real estate market in Da Nang.

Reporting by HOANG HIEP - Translating by A.THU