Da Nang seaside land prices double in Q2

By Dang Khoa   July 18, 2018 | 11:54 am GMT+7
Da Nang seaside land prices double in Q2
Vo Nguyen Giap Street in Da Nang City. Photo by VnExpress/Nguyen Dong

Economic and infrastructure growth and lack of new supply in condo segment the reasons, according to the Vietnam Association of Realtors.

A recent report by the Vietnam Association of Realtors (VARs) said the prices of land along the Da Nang coastline doubled in the second quarter of this year though no transactions were reported. 

The association added that prices in the central street of Vo Nguyen Giap are now listed at around $13,000 per square meter.

On smaller streets in various parts of the city, the going rates are now $4,300-8,600, though again there were few transactions.

The report attributed the increases to Da Nang’s steady economic growth, and claimed prices are still in a “reasonable range.”

It also credited local authorities with improving infrastructure and giving the city a more modern appearance.

But it said no new housing developments have come into the market in the last six months due to legal disputes between developers and the city.

Since the second quarter of 2017 official land prices on the city’s outskirts have also seen a 30 percent rise. The average price is now $430-650 per square meter.

In the second quarter, only 800 apartments came into the market and these were from past projects, with 80 percent of them being snapped up in the last six months. This supply shortage has caused a spike in condo prices, with a square meter now costing $1,300-3,400.

A tightening of regulations has caused investors to shy away from further exposure, and it is feared speculation in the market could trigger a bubble.

Vacation homes also faced a supply shortage, especially in the condotel segment. The report said this segment saw the largest number of second-quarter transactions: 300. 

No new condotels came into the market in the quarter, VARs said. 

No villa transactions were reported either.

But investors remain very hopeful since Da Nang is tweaking some urban plans to revive stalled projects.  

Many projects remain on hold due to legal problems with authorities. Others are in limbo because their lame-duck developers lack funds to go ahead.

 
 
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