Da Nang real estate market shows signs of positive recovery

Since the beginning of 2024, the number of real estate transactions has increased significantly compared to the same period in 2023. In particular, many commercial housing projects, townhouses combined with business... have been started, implemented and completed, bringing signs of continued improvement in the real estate market in the coming time.

Some housing projects under construction in Hai Chau district bring positive signals to the Da Nang real estate market. Photo: HOANG HIEP

According to Deputy Director of the Department of Construction Tran Van Hoang, in the first quarter of 2024, the number of real estate transactions in the city was recorded at 2,117 apartments and individual houses, an increase of 145% over the same period in 2023 and an increase of 103.2% over the fourth quarter of 2023. Along with that, the city has 5 commercial housing projects licensed for new construction. "The real estate market in Da Nang city is starting to show positive signs, and is expected to gradually improve in the coming time," said Mr. Tran Van Hoang.

The Department of Construction also actively monitors and closely supervises the operation of social housing projects in the city; at the same time, it approves 25 applications that meet the conditions for renting social housing, 84 applications that meet the conditions for buying social housing, contributing to solving the housing needs of people and workers in the city. Along with that, the Department regularly monitors and reminds investors to implement the progress of projects according to plan; recommends organizations and individuals participating in real estate transactions to carefully study the legal status of the project, and only conduct transactions at real estate projects that meet the conditions for putting into business. The Department of Construction also reports to the Ministry of Construction on the implementation of the 120,000 billion VND credit program and difficulties and obstacles; From there, propose and recommend the Ministry to adjust the conditions for project investors to borrow capital from the 120,000 billion VND Credit Program to invest in social housing in the area.

According to the report on the real estate market in Da Nang and surrounding areas in the first quarter of 2024 by DKRA Group Joint Stock Company, the overall demand for the land segment recorded positive signs, with consumption increasing by about 30% compared to the end of 2023, secondary prices recorded a slight increase of 2-3%, liquidity had many positive changes... In the apartment segment, supply increased by 33% compared to the same period in 2023; new supply and consumption were mainly distributed in Ngu Hanh Son district. With a number of projects in Da Nang in the stage of receiving reservations and preparing to launch products to the market, the supply in the coming months is expected to have certain progress. The Government 's positive moves to remove difficulties for the market, especially difficulties in legality, capital sources, etc. are expected to create conditions to promote the recovery of the market in the coming time.

Mr. Vo Hong Thang, Director of Consulting and Project Development Services at DKRA Group Joint Stock Company, expects: “In the second quarter of 2024, the real estate market in Da Nang and its vicinity is expected to have certain developments, depending on each specific segment. The land market increased slightly, liquidity and secondary price levels recorded more positive signals than in the first quarter. For the apartment segment, with the move of some large projects being advertised for sale by the media, the new supply brought to the market in the second quarter is expected to have more positive changes than in the first quarter; liquidity in both the primary and secondary markets may increase”.

In the recent situation in the city, there are many housing projects (apartments, villas, townhouses combined with business) that have been licensed for construction, started construction, implemented construction or accepted reservations for apartments, investors expect these projects to lead the real estate market to grow. In particular, apartments are also a sustainable investment and real estate development direction that is suitable for the actual situation and housing trends of urban residents in the future. Director of Van Dat Real Estate Investment and Development Joint Stock Company Pham Van Sung said that due to increasingly limited land funds and increasing land prices, apartments are a real estate segment that not only solves housing problems, but also creates a suitable environment associated with a civilized lifestyle for urban residents at a reasonable cost.

Revenue from housing and land increased
According to the City Statistics Office, in the first 4 months of 2024, revenue from housing and land in the city reached VND 862.57 billion, accounting for 10.9% of the total state budget revenue in the city, 55.9% higher than the same period in 2023 (VND 553.249 billion). Retail sales of wood and construction materials increased by 18.3% over the same period. Due to increased construction demand, the prices of some construction materials increased, housing maintenance materials increased, rental housing prices and other housing-related services increased.

HOANG HIEP

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