Da Nang: Apartment market shows positive signs

DNVN - On October 17, DKRA Consulting (under the real estate services group DKRA Group) announced a report on the housing real estate market in Da Nang and its vicinity in the third quarter of 2024, showing that the primary consumption rate of the apartment segment has positive signals.

According to DKRA Consulting, in the third quarter of 2024, the primary supply of residential real estate in the Da Nang market and surrounding areas has significantly improved, recovering in most key segments. However, the overall demand is modest, mostly concentrated in projects with completed infrastructure, legal documents and implemented by reputable investors.

According to DKRA Consulting, the primary consumption rate of the apartment segment in the Da Nang market and surrounding areas in the third quarter of 2024 showed positive signs.

Typically, in the land segment, DKRA Consulting recorded 16 primary projects introduced to the market with a primary supply of more than 1,100 plots, an increase of 45% over the same period last year. Market liquidity recovered positively, primary consumption increased by 80% over the same period in 2023.

However, the overall market demand remains low, accounting for only about 8% of the total supply. Transactions are mainly in projects with completed infrastructure, legal documents, and red books. Quang Nam continues to lead the primary market when the total supply - consumption reaches 81% and 54% respectively.

Primary supply of townhouses/villas increased by 22% YoY but was still low compared to the period before 2019. The market received a primary supply of about 867 units from 11 projects launched for sale. The absorption rate reached 9% (about 82 units), up 1.6 times over the same period last year. Transaction volume was concentrated locally at 1 newly launched project in the quarter.

Notably, old projects all have slow sales or closed their inventory, with no transactions recorded. The primary selling price level remains stable, while the secondary market recorded an average price decrease of 4% compared to the end of 2023. The decrease is mainly concentrated in projects that have been implemented for a long time, are behind schedule, and have not completed legal procedures.

In that context, the apartment market recorded a 32% increase in primary supply compared to the same period in 2023 with 15 projects launching sales, supplying the market with nearly 2,300 apartments, mainly concentrated in Da Nang. The primary consumption rate showed positive signals, reaching about 47% of the total primary supply, equivalent to 1,058 units and 2.8 times higher than the same period. Transaction volume was concentrated in projects in the Class A apartment segment.

According to DKRA Consulting's forecast, the new supply of land plots in the Da Nang market and surrounding areas will have many improvements in the last quarter of the year, fluctuating around 100 - 150 products, mainly concentrated in Quang Nam and Da Nang.

In the apartment segment, new supply in the fourth quarter is expected to increase, reaching about 2,000 - 3,000 units. Most of the supply is concentrated in Da Nang, while Quang Nam and Thua Thien Hue continue to maintain a shortage of new supply.

According to DKRA Consulting, the recovering economy, the improved legal system, the cooling down of real estate loan interest rates, the good support from preferential payment policies, discounts, and support for bank loan principal and interest grace periods, etc. are factors expected to create a recovery for the real estate market in Da Nang and surrounding areas in the near future, however, there will be few breakthroughs in the short term.

Hai Chau

Source: https://doanhnghiepvn.vn/kinh-te/da-nang-thi-truong-can-ho-co-tin-hieu-tich-cuc/20241017100531287