Da Nang Property Market: Immediate Recovery Expected

If it is effectively cashing in on its socio-economic development conditions to become a tourism and commercial centre, Da Nang will certainly attract a large number of people from other places like Hanoi and HCM City to live. And so, the dullness of the Da Nang property market will be soon over and the buoyancy will soon come.

 

According to Mr Dam Quang Tuan, Chairman of Da Nang Real Estate Association, the Da Nang property market is unlikely to collapse or "plummet". Given its advantages, the leading market in the central region will recover quickly.

 

He pointed out that Da Nang City is endowed with unique potentials and advantages to develop the property market, with the long beach - rated one of six most beautiful beaches on the planet. The beach, lying in proximity to the downtown, will serve as a momentum for the city to develop ecological tourism and vacation property.

 

Most importantly, property prices in Da Nang are considered very low in the country. “Although the special interest of domestic and foreign investors has increased the prices of real estate in city by 30 - 40 percent on average, this hike, I think, is reasonable in a special market like real estate,” Tuan said.

 

He noted that the increase in property prices in Da Nang is completely reasonable and necessary as it accords with general trends and reflects investors’ right valuation in real estate in Da Nang. Importantly, prices are not driven up by groundless reasons.

 

Tuan admitted that the Da Nang property market is now lacklustre. “However, in my opinion, all business sectors must have hot and cold periods and the real estate sector is no exception. The Da Nang market is also affected by general trends in the country and this situation is explicable,” Tuan said.

 

Da Nang or any other localities in the country is affected by tightened credit policy of the Government in couple with rising inflation, which inhibits cash flows from running into the real estate market, he explained.

 

Besides, residents in Da Nang do not have very high come, the city’s population is small, and the residential land area is vast; thus, the demand for housing land is not high. A large majority of property investors in Da Nang come from Hanoi, Ho Chi Minh City and other localities. When the real estate market in Hanoi slumps, the investor sentiment will be affected and their investment decisions will be more precautious, leading to a substantial decline in demand.

 

“But I still think this tough time is just temporary. With envisaged positive financial and economic data like stabilised deposit rates, gold prices and USD/VND exchange rates in couple with central and local supporting policies, many will return and boost investment into the Da Nang real estate market - a safe, effective investment channel. Then, with its geographic advantages, economic growth and social stability plus reasonable prices, the Da Nang real estate market will rebound strongly,” Tuan affirmed.