Bill Gates Returns to Vietnam: Surprising Real Estate Prices in Da Nang
After 18 years, billionaire Bill Gates has made a return trip to Vietnam, choosing Da Nang as his destination. Despite its potential as a tourist hotspot, the real estate market in Da Nang has been stagnant, with prices comparable to those in less developed provinces.
A Personal Trip to Da Nang
Arriving on a private plane on March 4th, Bill Gates has chosen to stay at a 5-star resort in Son Tra District. This visit marks his first return to Vietnam since 2006 when he met with representatives from the IT industry. During that trip, Gates also visited Bac Ninh Province and enjoyed local delicacies such as “trau” and listened to “quan ho” singing.
During this visit, Gates plans to explore Da Nang and Hoi An for about 5 days, taking the opportunity for a personal vacation.
Da Nang: The City of Bridges
Da Nang, known as the “City of Bridges,” has the potential to become a leading economic, political, cultural, and social center in the Central Highlands region. With its abundant natural resources and skilled workforce, Da Nang has become a top destination for domestic and international tourists.
However, while Vietnam’s tourism paradise attracts the super-rich, the real estate market in Da Nang remains lackluster, affecting not only the luxury resort segment but also all other market segments.
Stagnant Real Estate Prices in Da Nang
After years of stagnation in the resort real estate market, land prices in Da Nang remain relatively low. Prices range from 22-60 million VND per square meter in various districts. For example, in Ngu Hanh Son District, prices range from 22-30 million VND per square meter, while in Son Tra District, prices range from 55-70 million VND per square meter.
Compared to other coastal cities like Nha Trang and Ha Long, real estate prices in Da Nang are still relatively affordable. In Nha Trang, outskirts land prices reach 50-70 million VND per square meter, and in the city center, prices are even higher, often exceeding hundreds of million VND per square meter.
In fact, real estate prices in some areas of Da Nang are on par with those in less developed provinces such as Bac Ninh, Bac Giang, Vinh Phuc, Nam Dinh, and Thai Binh. With around 2-3 billion VND, one can own a beautiful plot of land in Da Nang. Meanwhile, in Tan Hung (Bac Giang), land prices for land parcels reach 35 million VND per square meter, equivalent to 3.5 billion VND per plot. In Tiền Hải (Thai Binh), land parcels can reach 5-6 billion VND per plot. Similarly, land prices in Vinh Phuc range from 5-7 billion VND per plot.
However, despite these low prices, the supply of real estate in Da Nang remains low. According to a market report, new supply in the residential land segment has decreased by approximately 26% compared to the previous year. This is the lowest level in the past five years. The new supply is concentrated in Quang Nam and Da Nang, accounting for 58% and 42%, respectively.
The Future of Da Nang’s Real Estate Market in 2024
According to Tran Trong Vu, a member of the Real Estate Market Research Task Force at the Vietnam Association of Realtors in Da Nang, the real estate market in Da Nang still has room for growth. There will be a large supply of apartments in the coming years as real estate developers finalize legal procedures and begin sales in the third quarter of 2024.
In particular, Da Nang is currently leading the country in the number of social housing units, which are affordable for low-income individuals. However, the supply still falls short of meeting the demand.
Furthermore, the city’s development plan for 2021-2030 focuses on expanding the urban area in the northwest, aiming to reduce population density in the city center. This expansion will make the northwest area a key development area in the Da Nang market.
Despite the slow recovery, the primary market prices have remained stable thanks to supportive policies such as interest rate assistance, principal payment deferment, and payment schedule flexibility. This provides a glimmer of hope in the current stagnant real estate market and a great opportunity for investors with available capital and long-term vision to participate in Da Nang’s real estate market.
To stay updated on the latest news in the business world, visit Business Today.