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VietNamNews

Da Nang real estate market shows signs of life

Update: September, 08/2012 - 09:58

HA NOI — Liquidity in the apartment market in central Da Nang City partly improved while the segment of offices for lease saw a reduction in rent for the second quarter, according to the latest report on the Da Nang real estate market released by the Savills Viet Nam Company Ltd on August 28.

Savills Viet Nam, one of the leading real estate services providers in Viet Nam, said that by August, no new projects had entered the market, but the current stock had increased slightly due to the additional launch of one project in each sector.

The sale status of the whole apartment market increased slightly by 1 per cent to 50 per cent compared with the first quarter. The price range varied from VND14 million to VND62.48 million per sq m.

Approximately 1,200 apartments from three projects would enter the market by 2013.

Hai Chau District was the biggest future supplier of apartments in terms of number of units and projects, while Son Tra was expected to be the largest future supplier of villas with 700 dwellings from four projects.

Meanwhile, the average rent of offices for lease decreased by 2 per cent quarter-on-quarter but overall occupancy reached 86 per cent, an increase of 10 per cent. The total stock was unchanged quarter on quarter, remaining at approximately 80,000sq.m.

In the second quarter, offices took up 8,550sq.m of space, the highest level over the last year due to the efficient performance of most of Hai Chau's existing office buildings.

In 2013, two projects would provide a total of approximately 10,400sq.m of office space.

The Da Nang hotel and resort market consisted of 3,100 rooms at 29 hotels and resorts, increasing 7 per cent against the first quarter.

The second quarter was the peak season for domestic visitors so the average occupancy for the overall market increased 7 per cent quarter-on-quarter.

Six projects were expected to come online in the remaining quarters of 2012, providing approximately 900 rooms.

The total stock of Da Nang's retail market was approximately 100,000sq.m, a 1 per cent decrease quarter-on-quarter but increasing 32 per cent year-on-year.

The average rent also saw a 3 per cent quarter-on-quarter decrease while the average occupancy rate was 88 per cent, increasing by 1 percentage point compared with the first quarter of this year.

In the near future, Da Nang's retail market was expected to welcome big retailers such as Parkson and Lotte Mart, said Savills Viet Nam.

Vo Van Cuong, standing deputy chairman of the Da Nang Real Estate Association, said the city property market could recover if the interest rate was not more than 10 per cent for loans and 5-7 per cent for deposits. With these interest rates savings could flow into the property market.

The market was expected to start recovering as of the second quarter next year, Cuong said.

Da Nang has many ways to recover the property market, including increasing air routes, flights, visitors and entertainment areas and setting stable land prices. — VNS

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