The central city of Danang licensed three real estate projects valued at US$635 million in the first nine months, accounting for up to 96.5 per cent of the city’s total foreign direct investment (FDI) in the period, state media said.
The largest project is a US$325-million hotel-trade complex by London-listed VinaCapital Infrastructure Fund, followed by Da Phuoc Urban Area worth US$250 million by South Korea’s Daewon Company and Ngu Hanh Son Resort worth US$78.1 million.
“The property market Danang is bustling”, said Richard Leech, director of CB Richard Ellis (CBRE) Vietnam, in a seminar held recently to review the city’s current real estate market.
The city is expected to have an additional 35,000 square meters of office space by the end of the year, compared to 20,000 square meters for lease with occupancy rates at 96 per cent by late 2006.
Office rental rates range between US$10 and US$15 per square meter per month, which is quite acceptable to investors, Tran Quoc, head of Thien Kim Company’s real estate section said, noting that rates might increase in the coming time, but only slightly due to abundant supply.
A Big C Shopping Centre is slated to open in November and the Indochina Riverside Mall is to debut at the end of December, which marks the warming real estate market.
The central city will be home to 500 villas, 3,200 hotel and resort rooms, 14 shopping malls, 800 condominiums, 275 serviced apartments and some 100,000 square meters of office space for lease by 2010, CBRE forecast. (Vietnam Economic Times, VNA)
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