Danang Real Estate Market: Commonly Asked Questions Answered by CVR
By Peter Frieske, Managing Director Da Nang is positioned as a prestige real estate and resort real estate destination. The
Read moreBy 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!
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
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.
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.
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.
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.
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).
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.
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.
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
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
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