According to DKRA Vietnam, in June, the price of land plots and townhouses on the Danang primary market showed signs of cooling down.

Tourism is the strength that helps the real estate market in Danang have more advantages to develop. The city possesses expensive location including mountains, the sea and many beautiful landscapes, with the number of domestic and international tourists coming to Danang increases year by year.

It is also the venue for many major international events such as the final round of Miss World Vietnam 2019, Techcombank Ironman 70.3 Asia Pacific champion, annual DIFF international fireworks festival, APEC conference 2017. Large-scale events attract tourists to the coastal city, dragging up the demand for staying.

 

Residents at a real estate project in Danang

 

According to Mr. Tran Ngoc Thai - Chairman of the Board of Directors of affiliates of Dat Xanh Mien Trung, as recognized by the company from 2017 to the present, the value of real estate in this area has many positive signs. For the first quarter, annual growth was 15-30% of the value, the second and third quarter were stable and maintained at 5-10%. The fourth quarter was considered a springboard for the market in the first quarter of next year, at 10-20%.

Earlier this year, Danang was also decided to approve the task of adjusting the master planning of the city until 2030, with a vision to 2045. The city chooses a Singaporean as a partner to formulate an overall planning of Danang up to 2030 with a vision to 2050. towards becoming a big, ecological and smart city, a center for start-up, innovation, creativity and a worthy coastal city of Asia.

 

 

Dragon Bridge - one of the famous places of Danang

 

Two places determined for urban development planning are the Southeast and Northwest of the city. The demand for housing of the local people and a part of those coming from other places to live and settle in the city is expected to increase, contributing to the growth of the real estate market.

 

However, facing great potential, Danang also has many challenges, manifested in the sign of slowing down recently. The Danang real estate market report recently published by DKRA Vietnam pointed out the signs of a slowdown in this coastal city. Accordingly, from the end of 2017 to the present, the shopping package has shown signs of cooling down in most segments. The price of land plots and townhouses on the primary market in June 2019 began to show signs of cooling down, about 10% lower than the previous months.

According to DKRA, in the condotel segment, from 2016 to 2018, Danang had 9,890 condotels of 12 projects launched and sold, reaching 75% (7,418 units), but from the mid- 2018 to the present, consumption has decreased significantly.

The reason for the recent decline in condotel segment, according to experts, is partly from the legal term of condotels is not clear. Accordingly, this type of real estate has not yet been granted a land use right certificate, making customers worried about risks when deciding to invest.

In addition, the reason also comes from the lack of credibility of many investors when they do not comply with customer commitments. “This cause the loss of trust in the market, the real estate transactions thereby are more slowdown, customers are gradually cautious and more careful before making decision on investment, "an investor said.

One of the condotel projects in Danang viewed from the Han River

 

Facing many concerns about the situation of Danang real estate market, many experts said that the market at this time is in need of purification and adjustment to create momentum for development of the next stages. In this period, reputable investors implementing quality projects will gain the advantage.

Phong Van - VnExpress.net