Da Nang apartment prices rise to $3,200 per square meter

In a recent report it said the apartment absorption rate in the central city was relatively steady at 50%.

According to local real estate consultancy DKRA, the highest price was around VND150 million per square meter, with the most expensive apartments being in Hai Chau District.

In Son Tra and Ngu Hanh Son districts, prices exceeded VND80 million, it said. In Ngu Hanh Son, among the top destinations in the city, they cost VND50-65 million.

According to David Jackson, CEO of Avison Young Vietnam, the city's apartment market is driven by its infrastructure, tourism and economic development.

Many developers are focusing on the high-end segment, convenience and design, and costs of construction materials have increased sharply, and these are driving up prices.

Tran Trong Vu, co-founder of SPE.R, a company that researches the real estate market in the central region, said the city is an attractive destination for tourists and foreign professionals, which spurs demand for owning and renting large apartments.

An SPE.R survey found that the average rents are VND3.5-4 million per month for a studio apartment and VND4.5-5.5 million for a one-bedroom unit. Many apartments of these kinds have been built recently.

Bank deposit interest rates are still low, causing many investors to turn to property, especially apartments. Like Hanoi and HCMC, Da Nang too has seen apartment supply shrink this year.

DKRA said the number of apartments offered for sale in Da Nang in the first quarter was 1,300, down 11% quarter-on-quarter. More than half were in Ngu Hanh Son.

Vu said many real estate developers are wrapping up legal processes for construction, and so supply is likely to improve from the third quarter. He said housing demand remains high since the city’s population is growing at 2.5% a year. But many other property segments such as resort, villa and townhouse remain mired in difficulties.

DKRA predicted liquidity in both primary and secondary markets to improve compared to the end of last year, but ruled out any sudden hike in the short term.