In a report on the Da Nang real estate market in the first quarter of 2023, real estate services group DKRA said: The delay in licensing new projects and the simultaneous inspection of projects in Da Nang and surrounding areas has caused many projects to be temporarily suspended. This has greatly affected the supply and liquidity of the market in recent times.
For example, in the land segment, in the first quarter of 2023, the Da Nang market and surrounding areas recorded 2 projects opening for sale with a supply of about 33 plots, a significant decrease compared to the same period in 2022.
Da Nang resort real estate "hibernation" lasts for a long time. (Photo: SD)
The absorption rate of new supply reached 15% (about 5 plots), only 2% compared to the same period last year. The secondary price level in the quarter recorded a decrease of 8% - 12% compared to the same period last year.
Newly launched projects are mainly concentrated in Quang Nam , accounting for about 90.9% of the total market supply. Thua Thien Hue continues to record no new supply. The primary price level has not fluctuated compared to the previous launch.
The apartment segment recorded 2 projects opening for sale in the last quarter, with a new supply of about 126 units, down 28% compared to the previous quarter but up 40% compared to the same period in 2022.
New supply in the quarter was concentrated in the Da Nang market, while Quang Nam and Thua Thien Hue continued to have a shortage of new supply. The absorption rate of new supply reached about 23%, equivalent to 29 units, down 33% compared to the same period last year.
The new supply of townhouses/villas in the Da Nang market and surrounding areas has decreased significantly due to the inspection of a series of real estate projects. In the first 3 months of 2023, the new supply of townhouses/villas came from a single project in Quang Nam, with about 12 units for sale, only 18% compared to the same period last year. The absorption rate of new supply reached 42% (about 5 units), down 86%.
This is the lowest consumption level in the past 5 years. The primary selling price level increased by 2% - 3% compared to the previous quarter and increased by 14% compared to the same period, along with policies to support interest rates, principal grace period, payment extension, rental commitment, etc. to stimulate market demand.
In the secondary market, liquidity is recorded at a low level, transactions are mainly focused on projects that have handed over houses, have complete legal procedures and selling prices under 5 billion VND/unit.
The resort real estate segment recorded no new supply opening for sale in the quarter in all segments. Most of the current market supply comes from inventory of previously opened projects. Primary selling prices did not fluctuate much.
In the resort villa segment, the market has not recorded any new supply for sale for 9 consecutive months. Market demand is very low, more than 60% of projects have closed their portfolios, and no transactions have been recorded. The primary price level ranges from 9.1 to 131 billion VND/unit. The revenue sharing trend continues to be widely applied and gradually replaces the profit sharing form due to the transparency of cash flow.
The condotel segment in the first quarter of 2023 did not record any new supply as many investors were more cautious in implementing sales. By the end of the first quarter of 2023, there were about 669 condotel units in inventory. The primary price level did not fluctuate much compared to the previous quarter and the same period last year. Primary liquidity was quiet as most projects had closed their inventory.
DKRA forecasts that the supply of land plots in the second quarter of 2023 will increase slightly compared to the first 3 months of the year, fluctuating around 90 - 120 plots, mainly concentrated in Quang Nam and Da Nang. The Thua Thien Hue area continues to experience a shortage of new supply.
Primary prices remain stable compared to the first quarter of 2023 and there are unlikely to be any price increases in the short term. Projects with complete legal procedures, good locations, meeting market requirements, etc. will attract the attention of investors.
In the apartment segment, new supply in the second quarter of 2023 may increase slightly compared to the first quarter, fluctuating at 200 - 300 units, mainly concentrated in Da Nang.
The information about the loosening of policies and the State Bank's interest rate cuts will help the general demand recover, but it will be difficult to make a sudden change in the short term. The proportion of supply of class A and luxury apartments is forecast to increase in the second quarter of 2023.
“However, the main segment of the market is still class B and class C apartments with prices ranging from 30 - 40 million VND/m2. The primary selling price level continues to be high due to pressure from input costs, loan interest, project legal costs, etc.,” DKRA emphasized.
Source
Comment (0)