Da Nang real estate market expects free trade zone effect

The real estate market in Northwest Da Nang is quiet, but is expected to soon become vibrant again with the construction of the Free Trade Zone.

In the period of 2018-2020, real estate in the Northwest of Da Nang (in Lien Chieu and Hoa Vang districts) has seen bustling trading activities. This is thanks to the general market context combined with the effects of major projects being implemented such as the High-Tech Park, Information Technology Park, La Son - Tuy Loan Expressway, Nguyen Tat Thanh extended road..., as well as information about the planning of Lien Chieu port.

Projects concentrated along the Cu De River such as Golden Hills, Gami Eco Charm, HomeLand Central Park... attract a large number of customers from all over. Land prices here have peaked and are as high as those in Hoa Xuan Urban Area (Cam Le District) at the end of the first quarter of 2019.

However, from 2020 to now, the market in the Northwest region has gradually cooled down. On the extended Nguyen Tat Thanh road, after more than 4 years, the Golden Hills project has new residential areas gradually forming in area A, while in areas B and C, many new townhouses are built in rough condition, unfinished and abandoned.

Mr. Nguyen Cong Anh, Head of Minh Khang Real Estate Office, said that although the Lien Chieu port construction project has been implemented for the past 2 years, the market in the Golden Hills Project area and Northwest Lien Chieu has almost no fluctuations.

“Currently, the transaction situation in the Golden Hills area is very gloomy, mainly focusing on secondary products (products for resale) from the group of buyers for residence, while there are almost no investment buyers. Many investors previously bought land to wait for Lien Chieu port to be built with the hope of increasing prices, but land prices not only did not increase, but also decreased,” Mr. Nguyen Cong Anh shared.

Similarly, Mr. Vo Trong Phung, Director of Bold Land Company Limited, commented that after the land fever period, the Northwest area of Da Nang is basically stable in terms of planning, with only the Lien Chieu Port Project and Lang Van Tourist Area being the two major unfinished projects, so the market here has not fluctuated much.

However, many investors and brokers still highly appreciate the potential of the Northwest region, when recently, Da Nang City announced information about the construction of a free trade zone, in which many proposed locations are concentrated in the Northwest region.

Specifically, location 1 will form a logistics and production area of about 536 hectares located west of the Hai Van tunnel bypass to the end of Truong Dinh village (Hoa Lien commune, Hoa Vang district). Location 2 will form a production area of about 538 hectares in the expanded high-tech zone (Hoa Ninh commune, Hoa Vang district). Location 3 will form a commercial service area of about 132 hectares in the area oriented as a duty-free zone (Hoa Nhon commune, Hoa Vang district). Location 4 is a proposed sea encroachment area of about 250-1,000 hectares in Da Nang Bay.

Although not yet oriented in construction planning, investors all agree that this 4th location will be connected to Lien Chieu seaport under construction to facilitate the transportation of goods.

The Government has directed and assigned a deadline for Da Nang to complete the project and dossier to establish the Da Nang Free Trade Zone by December 2024, and send it to the Ministry of Planning and Investment for appraisal and submission to the Prime Minister for decision.

The People's Committee of Da Nang City said that after its establishment, the Free Trade Zone will enjoy policy mechanisms such as investment policies in economic zones and duty-free zones.

Mr. Nguyen Cong Nhu Nguyen, Chairman of the Board of Directors of SCD Real Estate Group Joint Stock Company, Member of the Executive Committee of the Vietnam Real Estate Brokers Association, believes that the formation of a free trade zone will not only create a boost to attract investment from large enterprises to the Northwest Lien Chieu area, but also create momentum to warm up the real estate market here, when the infrastructure of this area is invested synchronously and completed.

For his part, Mr. Nguyen Cong Anh assessed that each market area has its own unique values, and the Golden Hills and Gami Eco Charm areas in the future will be a highlight for the entire urban infrastructure of the Northwest region of Da Nang.

“In terms of economic value, currently those two locations have a lot of land fund, and investors in those two areas are mainly from other provinces. However, due to the economic recession and difficult market, investors have not had many new activities. In the near future, when Lien Chieu port, La Son - Hoa Lien expressway are completed, and the Free Trade Zone comes into operation, the cash flow in this area will certainly be reactivated,” Mr. Nguyen Cong Anh predicted.

Source: https://baodautu.vn/batdongsan/thi-truong-dia-oc-da-nang-ky-vong-vao-hieu-ung-khu-thuong-mai-tu-do-d230451.html