The successful auction of many residential land lots and the revival of the real estate market in the fourth quarter of 2024 are positive signals about land fund exploitation and the strong recovery of the Da Nang real estate market in 2025.

Tourist apartments and condominiums are becoming prominent segments and leading the Da Nang real estate market with increasing supply. IN PHOTO: The tourist service area along the Han River (Sun Cosmo Residence) on the eastern end of the Tran Thi Ly Bridge. Photo: HOANG HIEP

Many large land plots to be auctioned

In the last 4 days of 2024, the Land Fund Development Centre under the Da Nang Department of Natural Resources and Environment coordinated with the Viet Nam Auction JSC to successfully auction 7 more subdivided residential land lots with a total land use fee of VND 51,592 billion, VND 2,321 billion higher than the starting price. Thus, in November and December 2024, the units successfully auctioned 46 residential land lots with a total winning bid of VND 265,631 billion, VND 23 billion more than the starting price.

Director of the Land Fund Development Centre Huynh Tan Quang shared that the unit set a target of collecting VND 200 billion for the city budget from residential land auction activities. In fact, the centre’s collection exceeded the target by more than VND 65 billion.

This result not only contributed to the city budget to serve investment and development, but also promoted the local real estate market. Currently, the municipal People's Committee has approved the auction plan for 59 subdivided residential land lots. The Department of Natural Resources and Environment is determining the starting price for the land lots that will be auctioned in the coming time.

Mr. Huynh Tan Quang said that the land lot for the construction of the 110kV Khue Trung Transformer Station is urgently carrying out procedures for auction in the first quarter of 2025.

In addition, three other land lots have been approved by the municipal authorities for the auction plan and the decision to auction the land use rights. They are a land lot coded A2-1 in the Tho Quang Aquatic Service Industrial Park; a commercial - service land lot A1-14 in Area C in residential area south of Cam Le Bridge; and a land lot for the Hoa Xuan Sports, Entertainment and Commercial Complex project in Hoa Xuan Ward, Cam Le District.

There are 3 commercial - service land plots that have completed legal procedures, and are being prepared to submit an auction plan in the form of paying land rent at once for the entire lease term. They are land plot A1-1 on Vo Van Kiet Street (An Hai Nam Ward, Son Tra District); land plot A-1 in the resettlement area at the end of Bach Dang Dong route (Nai Hien Dong Ward, Son Tra District); and land plot at 16 Bach Dang.

In addition, there are 2 land plots that are being developed in detail: the land plot for the Hoa Xuan Creative Space project and the Da Nang International Fireworks Festival Complex project. Also, a land plot is under site clearance to call for investment in the Hoa Phuoc Wholesale Market project (Hoa Vang District).

The abovementioned large land plots and many other land plots will be under auction in the coming time.

The establishment of the Da Nang Free Trade Zone in the coming time is positive information, increasing investors' interest in Da Nang real estate. IN PHOTO: Real estate on both sides of the Western Ring Road 2 - one of the roads connecting the functional areas of the Da Nang Free Trade Zone. Photo: HOANG HIEP

Real estate market forecast for strong recovery

According to the Da Nang Statistics Office, after a long period of difficulties, the demand for buying, selling and investing in real estate in Da Nang has gradually recovered. Real estate business activities recorded a growth rate of 69.7% after difficulties and obstacles in the capital market, and in regulations on administrative procedures were handled. The number of real estate transactions increased rapidly in the fourth quarter of 2024.

Revenue from services and real estate business calculated for final consumption increased by 24.9% compared to 2023, whilst the final consumption segment (rental and purchase of houses) had a growth trend.

In general, tourist apartments and condominiums are becoming prominent segments with increasing supply, in which, it has led to an increase in the added value of real estate business services in the fourth quarter of 2024 with 16.48%.

Development investment capital in the city increased due to the growth of production and business as well as the revival of the real estate market. Notable among them were high-end apartment and resort real estate projects. A number of major projects in the city achieved high implementation values ​​in 2024, including TTC Plaza Da Nang, the Filmore apartment complex, the Han River tourism service area, the social housing apartment complex at plots B4-1 and B4-2 of Bau Tram Lakeside Green Urban Area, the apartment complex east of Tran Hung Dao Street, and the Han Peninsula Da Nang River Complex project, and the Estuary Tuyen Son Complex.

Also according to the Da Nang Statistics Office, the real estate market only began to show positive signs in the fourth quarter of 2024. Many real estate projects are facing difficulties in capital sources and cannot sell products. Legal procedures of some projects are slow to implement, and the supply of some real estate segments is still scarce.

However, the real estate market is gradually being cleared of obstacles and is expected to recover strongly in the coming time after resolving the frozen corporate bond market and implementing more regulations of the 2024 Land Law and guiding documents.

Da Nang’s real estate market is expected to receive positive developments from the implementation of Resolution No. 136/2024/QH15 of the National Assembly on the organisation of urban government and piloting a number of specific mechanisms and policies for the development of the city (effective from January 1, 2025). In particular, the establishment of the Da Nang Free Trade Zone in the coming time is positive information combined with positive signals from tourism activities that will increase investors' interest in Da Nang real estate, contributing to boosting local socio-economic growth.

Reporting by HOANG HIEP - Translating by M.DUNG