By Peter Frieske, Managing Director
Da Nang is positioned as a prestige real estate and resort real estate destination. The city targets to transform itself into one of the major socio-economic hubs in Vietnam and Southeast Asia as a whole, as well as a regional financial center.
The real estate market in Da Nang currently offers excellent investment opportunities for both local and foreign investors.
Do you plan to buy property in Danang, Vietnam? Wondering if you can buy real estate in Da Nang as a foreigner?
CVR is here to assist homebuyers by giving answers and solutions to these commonly asked questions about the real estate market in Da Nang.
Continue reading or get in touch with our experienced agents to learn more about some of the most commonly asked questions by our clients from all over the world!
Commonly asked questions about Danang real estate market
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Q: Can I buy real estate property as a foreigner in Danang, Vietnam?
A: Yes! Vietnam revised its law on real estate in 2015 allowing foreigners to purchase property with only a valid visa to enter the country. Since 2015 foreign direct investment in ocean view apartments, city-center condos, beach villas, and golf villas has exploded as an investor for investors across Asia and worldwide.
More details at: Buying property in Vietnam as a Foreigner
- Q: Danang Real Estate – price per square meter: Is it worth investing?
A: Da Nang represents an incredible opportunity for real estate investment. Currently prices range from USD $1,500 – $5,000+ per square meter.
There are a lot of reputable projects selling currently for $2,000 – $3,000 per square meter that show great potential for capital gains as prices continue to rise year on year.
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Q: What is your view of the current state of real estate in Da Nang? And what is your expectation for the next 5 to 10 years?
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A: The COVID pandemic has been quite difficult on the real estate market in Da Nang with some sale prices dropping as much as 30% over the last 2 years. Land prices were hit the hardest, while luxury condos and villa properties were more resilient with on average 10-20% price decreases.
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Over the last 6 months, the outlook for Vietnam real estate has dramatically improved with the ongoing reopening of tourism in Vietnam with a full reopening scheduled for March 2022. This has led to a quick rebound, though there are still opportunities to purchase at “COVID pricing” floating around the market.
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Prior to the pandemic, sale prices were appreciating in Da Nang by around 5-10% per annum. I expect this to continue in the next 5-10 years especially given the supply drought that COVID caused with many developers putting their new projects on hold until the pandemic subsides.
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Q: What is the average price per square meter in the different areas of Da Nang? I have seen very wide ranges of prices online which did not seem right.
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A: Prices generally match with quality (Grade A, B, or C) as well as location. Grade C projects generally do not get approval to sell to foreigners and are more often Vietnamese low-income / subsidized housing projects. Grade B projects (Son Transfer Ocean View, Monarchy) can be under USD $2,000 per square meter, while Grade A projects (Azura Luxury Apartments, Ocean Suites, Hyatt Regency) generally range from USD $2,000 – $4,000 per square meter with beachfront projects being on the higher end of the pricing spectrum.
Prior to the pandemic, some new builds were selling at up to USD $5,000 per square meter (Soleil Wyndham, Royal Da Nang).
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Q: Which areas would you recommend with the highest potential for price appreciation? and with the most comfortable lifestyle for a family? (Initially, we would come over for our vacations and would probably move here in the medium to long term. I am not planning on renting out at this point)
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A: For the highest appreciation, I would recommend looking at the beach resorts of Da Nang as the most popular investment opportunities for both residences as well as holiday-style, nightly rental options. Currently, the most interesting beachfront resort project is Shantira Beach Resort Hoi An with pricing ranging from USD $2,000 – $3,000 per square meter. This is significantly lower than the majority of existing beachfront resort projects which start at the USD $3,000 per square meter mark and show a good opportunity to capture the COVID pricing with a project that will be operational by the end of the year.
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Q: What are measures against the impact of typhoons to be aware of for properties? Or any issues that are specific to Vietnam/Da Nang?
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A: Typhoons historically do not pose a large threat to developments in Da Nang as the buildings are designed and constructed with provisions in mind to limit any damages from wind, rain, and flooding. Projects also are required to carry project-wide natural disaster insurance in case of any ultra-extreme storms in the future. You are also able to purchase individual homeowners insurance which covers any potential damages due to natural disasters. To date, no projects have been seriously damaged or destroyed by the typhoons in Vietnam. Most of the storms come from the east and generally hit the Philippines first and are greatly reduced in severity and size by the time they make landfall in Vietnam.
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Q: How Much Does a Danang Condo Cost?
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A: General price ranges from USD $1,500 – $5,000+ per square meter depending on location and project quality.
Overall, studio units start from USD $70,0000.
One bedrooms from USD $85,000
Two bedrooms from USD $150,000
Three bedrooms from USD $280,000
- Check out some of the condos for sale in Da Nang at CVR!
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Q: How Much Does a Danang Villa Cost?
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A: Given the low supply of villa projects in Da Nang the starting prices are slightly higher than condos.
Smaller villas (1 – 2 bedrooms) starting from USD $500,000
Larger villas (2 – 4 bedrooms) ranging from USD $700,000 – USD $1,500,000
Absolute beachfront villas starting at USD $1,600,000
- Check out some of the houses and villas for sale in Da Nang at CVR!
Read more: VIETNAM: Top Real Estate Questions Answered
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What’s the next step? Speak with a professional!
CVR can assist you in analyzing your options available for buying or selling a home in Vietnam! Our staff of fully licensed agents is here to answer your questions and provide you with free, objective advice on how to get the greatest deals on your sale or purchase. -
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As always, CVR is at your service and happy to provide help anyways we can!
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