Townhouses and resort shophouses are "ignored"
Speaking with Nguoi Dua Tin , a representative of DKRA Real Estate Services Group confirmed that it had published a report on the Residential and Neighboring Real Estate Market for the third quarter of 2023.
According to DKRA, the land segment in the third quarter of 2023 in the Da Nang City market and surrounding areas recorded 3 projects opening for sale with a supply of about 54 plots, a significant decrease compared to the second quarter and the same period in 2022.
The absorption rate of new supply reached 19% (about 10 plots), only 2% compared to the same period last year.
Transactions occurred mainly in product groups with an average price of VND 10.8 million/m2.
Primary price level has not fluctuated much compared to the previous opening sale.
Discount policies, profit commitments, bank support... continue to be applied by investors to stimulate market demand.
Secondary liquidity is recorded at an average - low level, with an average decrease of 8% - 10% mainly in projects that have been implemented for a long time but have not completed infrastructure and legal procedures.
The apartment market recorded 5 projects in Da Nang City being opened for sale in the quarter, providing the market with about 406 units, 2.8 times higher than the previous quarter and 4.5 times higher than the same period in 2022.
The A and C class apartment segments led the new supply, accounting for 52.5% and 47.5% of the total new supply in the market, respectively. The projects for sale were concentrated in Ngu Hanh Son and Lien Chieu districts.
Overall market demand recorded a positive recovery, with the consumption rate on new supply reaching about 57%, equivalent to 232 units, 3.6 times higher than in the second quarter of 2023 or 5.4 times higher than in the same period in 2022.
Most projects continue to postpone their opening dates to complete legal procedures and wait for positive signals from the market at the end of the year.
The townhouse and villa segment in the market of Da Nang City and surrounding areas did not record any new supply in the quarter.
Many projects continuously postpone sales implementation time due to general market impact as well as unresolved legal bottlenecks.
Market demand is low, primary consumption is about 19% compared to the same period, transactions are concentrated in projects with complete legal documents and developed by large investors.
While land, townhouses, shophouses... are all quiet, the apartment and condominium market in Da Nang City has high purchasing power.
Primary selling prices have not fluctuated much compared to the same period.
Preferential policies, discounts, interest rate support, rental commitments, etc. continue to be widely applied to increase liquidity.
In the secondary market, selling prices continued to trend sideways compared to the previous quarter but decreased by 3% - 6% compared to the beginning of the year. Most transactions focused on projects that had handed over houses and completed legal procedures with selling prices ranging from 3 - 5 billion VND/unit.
The resort real estate segment continues to record no new supply opening for sale in the third quarter of 2023 in all segments. Most of the current market supply comes from inventory of previously opened projects.
In the resort villa segment, the market has not recorded any new supply for sale in over a year. Overall market demand is low, primary consumption has decreased by approximately 59% compared to the same period, transactions are mainly concentrated in projects that have been handed over and are managed and operated by 4-5 star international units.
Shophouses in Da Nang City and neighboring areas recorded no transactions in the third quarter of 2023.
Primary prices remain high, ranging from VND9.1 to VND131.1 billion/unit. Policies on profit/revenue sharing, principal grace period, interest rate support, etc. continue to be widely applied to increase liquidity.
In the townhouse and resort shophouse segment, the market recorded no new transactions.
Primary selling prices have not fluctuated much compared to the same period, fluctuating between 7.1 - 16.3 billion VND/unit.
In the context of a sluggish general market, tourism has not grown as expected, interest rates have cooled down but are still difficult to access, etc., which have negatively impacted the market, causing liquidity to continue to face many difficulties.
The condotel segment in the third quarter of 2023 recorded no new supply. The primary price level did not fluctuate much compared to the previous quarter and the same period last year.
However, the market recorded some secondary listings with prices 10% - 15% lower than the contract price from customer groups using financial leverage.
Selling price continues to be high
According to DKRA's forecast, the supply of land plots in the fourth quarter of 2023 may increase slightly compared to the third quarter, fluctuating around 180 - 220 plots, mainly concentrated in Quang Nam and Da Nang City.
Thua Thien Hue area continues to be scarce in new supply. Primary prices continue to trend sideways compared to previous launches.
Incentive policies, discounts, etc. continue to be applied by investors to stimulate market demand. Secondary market liquidity is at an average level, and price levels have not shown more positive signals than in the third quarter of 2023.
In the apartment segment, new supply in the fourth quarter of 2023 may fluctuate at 300 - 500 units, mainly concentrated in Da Nang City.
The supply proportion of class A and luxury apartments is expected to increase, mainly distributed in Ngu Hanh Son district.
Primary selling prices continue to remain high under the pressure of project development input costs, interest costs, etc. due to prolonged project implementation time.
New supply and demand for townhouses and villas in the fourth quarter of 2023 may increase slightly compared to the third quarter, fluctuating between 50 and 80 units, mostly coming from the next phase of previously opened projects.
Overall demand is unlikely to have a sudden change in the short term and will focus mostly on projects with complete legal procedures.
In the last months of the year, the real estate market in Da Nang City is unlikely to make a breakthrough.
Primary price levels continue to remain stable, while preferential policies and quick payment discounts continue to be widely applied. Liquidity in the secondary market continues to trend sideways.
Regarding resort real estate, it is expected that the supply of resort real estate in Da Nang City and surrounding areas will continue to remain low.
Market liquidity is expected to face many difficulties and there will be few short-term breakthroughs. Primary selling prices remain stable. Interest rate support policies, principal grace period, payment extension, etc. continue to be applied by many investors in the current sluggish market context.
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