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Last updated: Friday, December 07, 2018

 

Da Nang Real Estate: Situation and Direction of Sustainable Development

Posted: Tuesday, September 18, 2018


According to statistics, there are more than 50 real estate projects in Da Nang. The total number of apartments, semi-detached houses and villas is about 50,000 units.

Reality

In 2018, the real estate market in Da Nang city has made great changes thanks to the advantage of a series of groundbreaking infrastructures, as well as the fact that many routes are easily connected to the central area, and some projects suspended for years will be restarted by investors. Apartment projects targeting middle-income customers will be favoured by investors. In 2018, mid- and high-end product prices did not fluctuate much, the possibility of price increase is very low.

The real estate market in Da Nang in 2018 is expected to be better than 2017 due to a number of supporting factors, including policies and decrees related to new project planning and especially more efficient real estate market segment.

After the APEC event ended successfully with the participation of major economies such as USA, Russia, China, Japan, Korea and Canada, the experts considered APEC 2017 a breakthrough in the process of socio-economic development of Da Nang. This is an opportunity for Da Nang to fully exploit its strength of tourism and new real estate projects in 2018.

Along with the proliferation of new types of real estate, such as: shophouse, condotel, officetel in Da Nang, according to investors in 2018, land will continue to be the preferred segment and most likely will spark an “explosion” of transactions. In Da Nang, there are two areas in which land and townhouse projects will “explode”, the South and North West, because these projects contains sustainable growth conditions, while the bridges are built to create a vital artery, expanding the urban space to the South. As a result, it is convenient for residents of this area to go to workplaces, as well as entertainment spots in the city center or Hoi An ancient town.

The property market in 2018 will develop stably, as the government has tools to manage and monitor. The first bright spot that can be seen in the market is the inventory of real estate is on the decline. In addition, there have been changes in policy to make Vietnam's property market more attractive to foreign investors. This can be seen through the fact that the influx of domestic and foreign investments into real estate is rising. Many foreign investors from Japan and Korea are interested and they need an open and transparent mechanism to invest in Da Nang city.

The development trend of Da Nang city is moving towards mixed projects of entertainment services, especially night entertainment, food shopping and large-scale art shows, to attract and retain visitors.

On April 27, 2017, the Da Nang People's Committee issued Official Letter 3073/UBND-SXD to adjust the transactions and real estate business in the city. It assigned the Department of Construction to regularly update information on real estate projects approved by the People's Committee of the city, the area with transferred land use rights that was invested in infrastructure for residents to build their own houses under Decree 11/2013 / ND-CP and eligible projects to sell houses in the future on the City Portal and website of the Department of Construction. At the same time, it also assigned the Department of Information and Communications, Da Nang Radio Television, Da Nang Newspaper, City Police to coordinate implementation.

Orientations and solutions
- The legal system needs to be completed in order to promote and manage the real estate market in a way that it can develop stably, sustainably and healthily. This solution includes the proposal to unify the property registration system, registration of land use rights and property rights on the land in a scientific way, simple procedures, and computerisation of the registration system for people to voluntarily register, to be protected by the State and to easily exercise their property rights in accordance with the law.

- Regarding the planning work, it is necessary to renovate the planning, socio-economic development planning, branch development planning and urban and rural development planning, to ensure the development of the real estate market according to projects, with a plan and overcome spontaneous urban and real estate development.

-Strengthening the role of state management in the exploitation and efficient use of land resources to control and regulate the real estate market for sustainable development. In this solution, the form of land use right auction will be strengthened to regulate the market and increase the state budget’s revenue, as well as to unify the management of conversion of land use purpose.

- Re-structuring the real estate market, develop diversified kinds of real estate goods, especially housing to suit the market demand, overcome the difference between supply - demand in the property market, actively stabilize the market and contribute to promoting economic development and ensuring social security.

-Completing tax policies, fees and charges related to real estate to encourage the effective use of real estate, official transactions on the market and to limit speculation tax evasion, increasing State’s revenue.

-Improving the organisational structure and capacity of real estate market participants to ensure that the real estate market operate in a healthy and professional manner, particularly, encouraging foreign investors and corporations to invest in high-end real estate.

- Building a unified information system on housing and real estate market in accordance with Decree 117/2015 / NĐ-CP of the Government, from the central to local level, as the basis for policy making, real estate market management; providing information to ensure that the real estate market operates in a open and transparent manner.

- Improving the efficiency and effectiveness of state management of the real estate market in disclosing public procedures and services related to the registration of ownership, ownership transfer, real estate sale, copies of real estate records, land allocation, and land lease.

Mr Nguyen Van Nam
Deputy Director of Da Nang Department of Construction








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