Real Estate in Da Nang Faces Challenges in 2024
Living conditions and the real estate market in Da Nang have become the topic of discussion lately. An increasing number of individuals are reaching out to real estate agent Tran Phuoc Hung, located in the Tâm Thanh Thoi district of Da Nang, to seek advice on affordable land purchases.
According to Hung, the current state of the real estate market in Da Nang is not booming yet, but it has already seen some transactions. This is a golden opportunity for individuals with a genuine need for housing to invest their money.
“In the early part of 2024, I have already sold 3 plots of land, with prices ranging from 1.2 to 3 billion VND. On March 18, I will be notarizing a land plot with a price tag of over 1.6 billion VND for a client,” said Hung.
In a report by the market research unit SPE.R, it is predicted that the real estate market in Da Nang is currently relying on the real housing demand. However, certain products such as shophouses, resort villas, and condotels continue to face challenges in terms of liquidity.
In addition, there are numerous abandoned shophouses in the Dien Ngoc ward of Da Nang, which have yet to attract investors for operation. This situation further deteriorates the quality of the projects and diminishes buyers’ trust.
Regarding condotels, many developers are no longer fulfilling their interest payment commitments, causing investors to bear losses and struggle to sell their properties.
Co-founder of SPE.R, Tran Trong Vu, stated that in 2024, the supply of new land plots will be limited, and secondary products will dominate the market. The supply of apartments and condominiums will be relatively abundant, with primary sales prices trending upward, while the secondary market will remain stable.
Properties such as rental apartments and villas will still be in high demand in 2024 due to a stable cash flow, limited supply, and increased rental yield.
On the other hand, the supply of resort real estate such as condotels and villas will be scarce, with low liquidity and profitability, especially for condotels.
As per SPE.R’s report, in 2024, the Northwest and Lien Chieu districts will see a relatively high supply of new products, but the liquidity will mostly be concentrated in secondary products. Shophouses, high-end apartments, and villas will face difficulties, while affordable secondary land plots will be more sought after.
In the Hoa Xuan – Cam Le district, the supply of new products in 2024 will mainly focus on villas and shophouses. However, the liquidity will mostly be concentrated in affordable secondary land plots, catering to genuine housing needs and investment. Clear price growth is expected to begin in the second quarter, with stronger liquidity towards the end of the year.
For the South Da Nang area, including the South district of Ngũ Hành Sơn and the Dien Ngoc ward of Quang Nam province, the supply of products will mainly consist of FPT Plaza apartments, with prices suitable for stable liquidity, similar to 2023. The secondary land market will have relatively low liquidity, with a preference for affordable prices, which have already experienced significant decreases, serving the housing needs.
The Dien Nam – Dien Ngoc area will continue to face difficulties in terms of both liquidity and potential price increases, as confidence in legal matters and future potential remains low. This region, like the Northwest, will experience low liquidity and price fluctuations but with more promising prospects compared to 2023.
Co-founder of SPE.R, Tran Trong Vu, believes that in the coming period, the real estate market in Da Nang will have a large supply of condominiums as property developers finalize legal processes and gradually start selling from the third quarter onwards.
Notably, Da Nang is currently leading the country in terms of the number of social housing units, with over 15,000 affordable homes. At the beginning of 2024, the local government publicly announced the first phase of social housing sales. However, the reality is that the demand for these units is still not fully met.
Explaining this issue, Vu revealed that social housing in Da Nang is mainly concentrated in the Lien Chieu district, while there are almost no new projects in the southern and southwestern parts of the city.
“The real estate market in Da Nang faced difficulties and challenges in 2023, but it is expected to have more bright spots in 2024. The recovery of the real estate market may not achieve a breakthrough, but it will bring forth many new opportunities,” shared Vu.
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