Apartment segment "stirring up" the Da Nang market

Da Nang real estate market is recovering strongly as the apartment segment continues to "sell out" and become the focus of the market.

Following the success of FPT Plaza 1 and FPT Plaza 2 apartments, in 2024, Da Nang will see a series of apartment projects continue to be opened for sale on the market.

The heat of this product line is noted when the projects after opening for sale are all "sold out". Notable among them are projects invested by Sun Group such as Sun Symphony, Sun Cosmo, Sun Ponte.

Mr. Phan Minh Thang, Deputy Director of S-Germi Real Estate and Construction Joint Stock Company, said that the projects have selling prices of about 50-100 million VND/m2, equivalent to prices from 4 billion VND to over 10 billion VND/unit, depending on location. In particular, projects along the Han River or the sea have the best liquidity.

“Usually, after just one month of opening the shopping cart, customers have bought all the products,” said Mr. Thang.

General Director of SCD Real Estate Group Joint Stock Company, Mr. Nguyen Cong Nhu Nguyen shared that the "wave" of apartment investment started in mid-2023 with the FPT Plaza project, buildings No. 1 and No. 2, and is still continuing strongly.

“Most of the customers are investors from the North. Accordingly, these investors buy in quite large quantities, worth tens to hundreds of billions of VND. In particular, there is a project along the Han River on Nhu Nguyet Street, near Thuan Phuoc Bridge, where many foreign investors have invested,” Mr. Nguyen informed.

Commenting on the new wave of investment in the apartment segment, Mr. Ha Nghiem, Director of Da Nang branch - PropertyGuru Vietnam Joint Stock Company, the owner of the information website Batdongsan.com.vn, said that since the third quarter of 2024, the apartment segment in Da Nang has had a good growth rate in terms of price and interest level. The demand for searching and booking apartments in the Da Nang market increased by 45%, the selling price increased by 32%.

According to Mr. Ha Nghiem, a notable sign is the sharp increase in the number of searches for apartments in Da Nang from investors in Hanoi. “This search rate increased by 30% in the third quarter of 2024 compared to the previous quarter. This shows the strong attraction of the Da Nang market to investors from other provinces,” Mr. Nghiem assessed.

With the rapidly increasing demand for investment in Da Nang apartment products among investors in the North, many Da Nang real estate businesses have decided to organize project product introductions right in Hanoi, the most recent of which is the Nobu Residences Da Nang Project.

Explaining the reason why the apartment product line is "taking over" the Da Nang real estate market, Mr. Nguyen Cong Nhu Nguyen said that price and payment methods are the key factors that help the apartment segment attract customers.

According to Mr. Nhu Nguyen, although the Da Nang land market has seen local price increases in some places such as Hoa Xuan Urban Area, customers still choose apartment products to "put down money", because most projects use flexible payment methods in installments, plus preferential credit with low interest rates or 0% (due to interest support from the investor) until the project is completed.

“According to regulations, land projects in the city must complete the construction of houses on the land before they can issue certificates and sell them, with a one-time payment method and a selling price that is quite high compared to before. Meanwhile, if investing in apartment products, investors only need to spend 10-30% of the initial price, pay in installments, or apply a very low interest rate support policy. This means that with the amount of money to buy only 1 land product, investors can invest in 2-3 apartment products at the same time with a higher total profit margin when transferring to secondary investors, while investing less capital for each product. Or if paying the entire value of the product, investors will receive a large discount of 12-15% from the investor. When the project is completed, the value of the apartment will increase, and the profit will also be higher,” Mr. Nguyen explained.

Similarly, Mr. Tran Ngoc Thai, Deputy General Director of Regal Group, said that apartment products are becoming a new trend and leading the market. According to Mr. Thai, due to the new regulations on building houses in central urban areas, in the near future, low-priced land products in new urban projects will be very scarce and investors will choose apartments as an alternative product.

“In Da Nang, about 5-10 years ago, apartment products were quite strange to everyone, but now they have become familiar. In the context of tourism recovery, this segment has the effect of both living and renting, especially in the current trend of tourists traveling with families often having the need to rent apartments to live in rather than renting hotels,” Mr. Thai analyzed.

Source: https://baodautu.vn/batdongsan/phan-khuc-can-ho-chung-cu-khuay-dao-thi-truong-da-nang-d239608.html