The real estate market is going through a distinct transformation. Da Nang is a bright spot as the market is flourishing in many segments.

The Da Nang real estate market has been flourishing. IN PHOTO: The Hoa Quy new urban area. Photo: GIA PHUC

Bright spots in new growth cycle

According to Mr. Ha Nghiem, Director of the Da Nang branch of https://batdongsan.com.vn/, the real estate market in most of the central regional provinces tends to increase the level of interest in the third quarter of 2024 compared to the first quarter of the year.

In particular, Da Nang and Quang Binh are the two most prominent markets when both the level of interest and selling prices of mainstream real estate types have increased.

By type, the apartment segment has witnessed a significant increase in interest. Specifically, in the third quarter of 2024, the demand for searching and booking apartments in Da Nang rose by 45%, Thua Thien Hue 65%, and Binh Dinh 23% compared to the first quarter of 2024. The prices of apartments for sale in Da Nang and Quang Binh recorded an increase of 32% and 41% respectively in the third quarter of 2024.

As for private houses and land, the level of interest increased in most central regional provinces, however, the prices still fluctuated. Da Nang is a bright spot when recording a rise in land prices compared to the first quarter of 2023, from VND40 million/m² to VND45 million/m² (up 12%). As recorded at notary offices and "one-stop" administrative departments in districts, many people come to do procedures related to land and houses.

The apartment market in Da Nang continues to attract investors. This increase is said to be due to the appearance of many high-end apartment projects along the Han River in recent times.

According to Mr. Ha Nghiem, there is the sharp increase in the number of searches for apartments in Da Nang from investors in Ha Noi. This search rate increased by 90% in the second quarter of 2024 compared to the previous quarter, showing the strong attraction of the Da Nang market to investors from other provinces.

Da Nang is currently leading in real estate development thanks to its stable economy and many driving forces from large infrastructure projects. In particular, the pilot policy of establishing a free trade zone and a regional and international financial centre; and developing the logistics and semiconductor industries is indirectly expected to further promote the local real estate market. The economic development has led to strong growth in demand for resorts and housing, especially the high-end apartment segment serving high-income groups, experts, foreigners, young businessmen, etc. Da Nang has a strongly developed tourism ecosystem, so the real estate market has very high profit potential.

Surge in demand for shophouses, luxury houses

Chairman of the Board of Directors cum General Director of Regal Group Joint Stock Company Tran Ngoc Thanh shared that in recent years, the luxury real estate market is entering a period of strictness and fierce competition due to increasingly high demands from customers. The top criteria include prime location, convenient transportation; scientific, unique design; high-class utilities; superior quality; and long-term legality. This requires investors to have a clear development strategy, and a deep understanding of customer needs and tastes as well as market trends. Projects need to be built and implemented on schedule, ensuring quality and especially creating sustainable value for customers.

The demand for luxury housing in major cities, including Da Nang, is growing at a rate of 15% per year. However, the current supply does not meet actual demand. In the context of limited supply, luxury real estate is becoming an attractive investment channel, so reputable investors have begun to implement high-end housing projects to solve the supply - demand problem. Notable among them are Regal Group and Sun Property which have been completing luxury real estate projects in the city.

The attraction of customers to current real estate projects makes the Da Nang market at the end of 2024 grow in a new cycle.

Reporting by GIA PHUC - Translating by M.DUNG