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In the tourist season, how is the real estate market in Da Nang?

According to a report on the residential real estate market in Da Nang and surrounding areas of DKRA Vietnam, in May, the supply of new land plots increased over the same period but still at a relatively low level, with about 22 products being brought to market. New supply concentrated in Da Nang, Quang Nam and Thua Thien Hue provinces continued to record only a short supply in the month.
Besides, the market demand was quite low, with about 9 products sold successfully, although the investor launched many market stimulus programs such as 10.5% - 16% discount for customers. The primary price level did not change much, while the secondary market recorded a decrease of about 3% - 5% compared to the beginning of the year, but the liquidity was still quite low. According to DKRA, in the current difficult market conditions, there is unlikely to be a sudden increase in supply and demand in the short term.


Regarding the apartment segment, new supply continues to be scarce; this is the 3rd consecutive month that the market has yet to record new projects for sale. The primary selling price of the projects being sold continues to stay high due to the pressure of input costs.
Despite the scarce supply, market liquidity remained at a very low level. Secondary liquidity improved compared to April 2023, and transactions were mostly concentrated in projects that have been handed over, conveniently connected to the city center.
This unit said that the step-by-step removal of legal barriers, the cancellation of orders to suspend transactions in some projects, and the recent trend of reducing interest rates have partly helped to improve sentiment and market liquidity. The new supply of Grade A and luxury apartments in Da Nang may increase by the end of 2023, but short-term fluctuations are unlikely.
In terms of townhouses/villas, the supply in the month increased year-on-year to 85 units. However, it was only concentrated on one project in the Da Nang area. Particularly, Quang Nam and Thua Thien Hue maintain the scarcity of new projects for sale. The market demand is very low, equivalent to 5% of the total new supply. New projects have slow sales; meanwhile, more than 90% of the old projects previously open for sale did not record any transactions.
The primary selling price level continued to move sideways and did not have many obvious changes compared to the previous month. However, the secondary price decreased by 2% - 3% compared to April 2023, with most transactions focused on projects that have been handed over and have completed legal documents. The market supply and demand may increase in the coming months, but there will only be a few short-term fluctuations.
Regarding resort real estate in May, no new supply was recorded. Regarding the resort villa segment, DKRA said that new projects in the area continuously delayed sales implementation, while the primary project almost closed the cart without recording any transactions. It is expected that in the following months, the market will continue to fall into a state of "sleeping," and it will be difficult to recover in the short term.
Regarding the resort townhouse/shophouse segment, this unit said that the market fell into a " hibernation " state. The supply continued to be absent. Legal barriers and many projects changing sales deployment plans affected the new supply in the month. In the context of the general difficulties of the market, in the coming months, the townhouse/resort shophouse segment is expected to remain quiet.
The supply remains scarce regarding condotel products, and the market "freezes" when there are no new projects for sale in a row. However, the Government has introduced policies to remove obstacles, such as regulations on issuing pink books for Condotel, requiring banks to reduce lending interest rates. However, the market is still quite bleak. The condotel segment is expected to face many difficulties in the coming months, and it is difficult to see positive changes in the short term.

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