Da Nang real estate prices set a new milestone: Hanoi's rich seek apartments while Da Nang people prefer private houses and land

The level of interest in Da Nang real estate has increased sharply, surpassing the previous peak and the selling price has set a new milestone. Specifically, the appearance of many high-end apartment projects in recent times has pushed the average price up. The selling price of land and private houses also shows signs of increasing.

Da Nang real estate prices set new milestone

According to information at the event “Overview of Da Nang Real Estate Market 2024” by Batdongsan.com.vn, the number of searches for real estate for sale in Da Nang in the second quarter of 2024 increased by 44% compared to the previous quarter and exceeded the peak of 2023. In addition, the price level of real estate for sale in Da Nang set a new milestone. This can be explained by the appearance of many high-end apartment projects in recent times, causing the average price to increase.

Specifically, The Filmore Da Nang is leading in apartment selling prices with an average of 120 million VND/m2. Three projects of Sun Group including Sun Symphony Residence, Sun Ponte Residence and Sun Cosmo Residence have prices ranging from 55 – 70 million VND/m2. The price base of some other projects such as The Sang Residence or Peninsula Da Nang is also from 50 – 56 million VND/m2.

Accordingly, apartments have the most outstanding growth. Specifically, the number of listings for sale of apartments in Da Nang in the second quarter of 2024 increased by 56% compared to the first quarter of 2024, the level of interest and the asking price also increased by 39% and 14% respectively. According to a survey of brokers, 55% said that the Da Nang apartment market is gradually recovering and 27% said that this type is growing strongly.

Mr. Ha Nghiem – Director of Da Nang branch of Batdongsan.com.vn commented: “The supply of luxury apartments next to the Han River is a boost for the Da Nang real estate market with prices and quality different from previous projects”.

In terms of demand, the trend of buying apartments in Da Nang for short-term trading has decreased compared to investing for living and renting. Specifically, 64% of brokers participating in the survey said that short-term trading has decreased compared to the previous period, more than 50% said that the demand for buying for living and investing is increasing.

This trend also goes hand in hand with expectations of profitability. Mr. Ha Nghiem said: “With the price level of Da Nang apartments not being low, buyers and investors also have certain expectations. Their biggest expectation lies in the rental cash flow from Da Nang’s tourism growth. From 2020-2021, due to the impact of the Covid-19 epidemic, Da Nang only welcomed 1 to 3 million visitors each year compared to nearly 9 million visitors in 2019. The city is aiming to attract about 8.4 million visitors in 2024. Therefore, many people believe that tourism will still have the potential to recover and increase again, promising stable apartment rental yields.”

Mr. Ha Nghiem said that this is not an unreasonable expectation, because in the first half of 2024, Da Nang is one of the few cities with good apartment rental rates and rental yields, from 4.2 – 4.5%.

Land and private houses in Da Nang also have positive signs. The growth rate of interest in land and private houses in this locality is among the top in the country. Specifically, the number of searches for land and private houses in Da Nang in the second quarter of 2024 increased by 41% and 55% respectively compared to the first quarter of 2023. At the same time, the selling price of land and private houses in Da Nang also showed signs of increasing. Specifically, the average selling price of land in Da Nang in the second quarter of 2024 was 33 million VND/m2, an increase of 10% over the same period last year. Private houses are being sold at an average of 61 million VND/m2, an increase of 9%.

According to this unit’s survey of hundreds of brokers in Da Nang, the volume of real estate transactions in this city has improved with common product values ​​of about 2-4 billion VND. Accordingly, 73% of brokers said that real estate transactions were stable or increased in the first 6 months of this year compared to 2023.

Hanoians speed up search for apartments in Da Nang

Although the interest in Da Nang apartments from Da Nang people still accounts for the largest proportion, the strongest growth rate of interest comes from Hanoi investors. Accordingly, the number of searches for Da Nang apartments from Hanoi people is increasingly large and increased by 90% in the second quarter of 2024 compared to the previous quarter.

According to the survey, only 28% of those looking for apartments in Da Nang are from Da Nang, the rest are from other areas. Meanwhile, the rate for land and private houses is from 40 – 42%, reflecting the high demand for real housing of local people.

However, Da Nang people have also become more open-minded towards apartments. 26% of the brokers participating in the survey revealed that Da Nang people have changed and are proactive in learning about apartments, 59% said that they are more interested in apartments than before but still prioritize land or private houses.

For Da Nang people who are interested in apartments, the main reason is that they expect good rental income. In addition, they also pay attention to living experience, amenities, location and good infrastructure. As for those who are not open to apartments, the main reason is because there is still a lot of land in Da Nang and the price is still quite good compared to apartments, besides the inherent mentality of not wanting to live in apartments due to concerns about fire and explosion and pink books.

In general, the Da Nang real estate market is having development opportunities, with the positive shift of apartments and the sustainable growth of land and private houses.

Source: cafef.vn