Week 47/2024 – Central Vietnam Real Estate News Summary

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   1. Da Nang Real Estate Market: Forecasting Trends And Investment Opportunities.

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1. The Da Nang real estate market is experiencing positive recovery post-pandemic, with rising demand for buying and renting, particularly in housing and resort sectors. Investors are keen on coastal projects and new urban areas, supported by improved transportation infrastructure.

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3. Da Nang’s advantages include its favorable location, beautiful landscapes, and quality living environment, making it attractive to both investors and homebuyers. Experts anticipate continued growth in the market, driven by infrastructure development and supportive local policies.

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   The rental segment, especially for apartments and vacation villas, is also rebounding, thanks to increased demand from tourists and workers. However, challenges like rising land prices, uneven liquidity, and competition from new projects persist. Investors should consider location, product type, and potential returns carefully.

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   Lastly, there is a growing emphasis on sustainable, environmentally friendly projects, with investors prioritizing energy efficiency and environmental protection in their developments.

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Source: batdongsan.com.vn

2. Contrast Direction For Apartment Market: Low End Product Shriveled, Luxury End Thrives.

The real estate market in Vietnam is experiencing contrasting trends, particularly in the condominium sector. A recent report by Batdongsan.com.vn highlights a significant shift toward high-end and luxury apartments, which are increasingly dominating the supply in major cities. In Hanoi, the share of high-end (55-80 million VND/m²) and luxury apartments (over 80 million VND/m²) rose from 6% combined in Q1 2020 to 70% in Q3 2024, while the proportion of affordable apartments (under 35 million VND/m²) plummeted to less than 1%. Similarly, in Ho Chi Minh City, high-end and luxury apartments constituted about 51% of the market by Q3 2024, compared to just 28% for affordable options.

Price trends indicate that luxury apartments in Da Nang are witnessing notable increases, unlike the major cities where prices have stabilized. As of Q3 2024, luxury apartment prices reached 132 million VND/m² in Hanoi, 121 million VND/m² in Ho Chi Minh City, and 111 million VND/m² in Da Nang. The interest level in luxury apartments varies across these cities, with Da Nang showing a significant rise.

Nguyễn Quốc Anh from Batdongsan.com.vn notes that Hanoi leads in searches for luxury apartments. Key factors driving consumers toward high-end real estate include services and amenities (34%), profit potential (25%), and maintenance management (23%).

Source: cafebiz.vn

3. Hanoians Search For Apartments And Condotels In Da Nang The Most In The Country.

According to Batdongsan.com.vn, Hanoi investors dominate interest in Da Nang’s apartment and condotel markets, with a 30% increase in Q3 2024 searches compared to Q2. Interest from Ho Chi Minh City also rose 20%. Condotels in Da Nang saw growing demand and a 22% price increase year-on-year due to tourism and economic growth. Luxury apartments also performed well, with prices rising by 14% in 2024.

The supply of high-end apartments surged from 38% in Q1 to 62% in Q3. Branded residences, offering premium services, are emerging as key drivers, attracting global brands like Nobu Danang. Da Nang’s vibrant tourism and improved infrastructure support investor confidence, with expectations of high rental yields and long-term growth in this recovering market.

Source: cafef.vn

4. Establishing Financial Centers In Ho Chi Minh City And Da Nang.

The Politburo has approved the creation of an International Financial Center in Ho Chi Minh City and a Regional Financial Center in Da Nang. These centers will operate under specialized management and competitive policies phased over time, aligned with international standards.

Key policies will be implemented by 2030, with full adoption by 2035, adjusted to Vietnam’s context. Dedicated governing bodies will oversee operations, and collaboration between central and local authorities is essential. The initiative aims for innovation, strong political commitment, and coordinated efforts for transformative development.

Source: cafeland.vn

5. Strong Surge In Land Plot Demand Driven By New Policies And Limited Supply.

October saw a significant rise in demand for land plots, with searches increasing by 29% year-over-year, according to Batdongsan data. This growth is fueled by rising apartment prices, a 25-30% increase in new land price tables, and stricter regulations on land subdivision, prompting investors to shift focus to land plots.

Experts predict that policy changes, including the Land Law 2024, will continue driving land prices up by 2-5% in the coming months. However, the market remains risky, requiring investors to have long-term capital and thoroughly research before making decisions.

Ho Chi Minh City leads the recovery with a 16% rise in searches and a 10-20% increase in prices compared to last year. Neighboring provinces like Ba Ria – Vung Tau, Long An, Dong Nai, and Binh Duong also show strong growth.

Source: vnexpress.net

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