(QNO) – In 2024, the real estate market in Quang Nam and neighboring areas is forecast to continue to face difficulties, slow recovery, and unlikely to have breakthroughs in transactions in many segments.
Low transaction
According to DKRA, except for the apartment segment, which received some positive signals, most of the remaining segments saw a significant decrease in supply and overall market demand. Specifically, the land segment in 2023 in the Da Nang market and surrounding areas recorded 8 projects opening for sale with a new supply of about 696 plots, down 74% compared to 2022. The consumption rate on new supply reached 31% (about 218 plots), only 15% compared to the previous year.
Transactions mainly focused on products priced at VND44.5 - 59.5 million/ m2 (Da Nang) and VND10.6 - 11.3 million/ m2 (Quang Nam). The primary price level recorded an average decrease of 7-9% compared to the previous opening sale. However, the secondary market recorded an average decrease of 8-10% compared to the beginning of the year, locally in the product group with legal problems, delayed implementation, and delayed handover of land use right certificates to customers...
The apartment market recorded 14 projects for sale, the primary supply of the whole market was about 1,731 units, an increase of 29% compared to 2022, mainly distributed in Da Nang. The consumption rate on primary supply reached about 42%, equivalent to 734 units, an increase of 66% compared to the previous year.
In particular, the townhouse/villa segment in the Da Nang market and surrounding areas recorded primary supply from 15 projects, about 882 units (down 46% compared to 2022). A series of projects stopped implementation due to legal problems, businesses lacked capital and were affected by general market difficulties...
Overall demand is low, with consumption only equivalent to 16% compared to last year, with transactions occurring mainly in the townhouse product group with an average price of less than 10 billion VND per unit.
In the resort villa segment, primary supply remained low, at 62% over the same period, mainly concentrated in Quang Nam and Thua Thien Hue (accounting for about 86% of the total primary supply in the whole market). Overall market demand decreased significantly, recording the lowest level in the past 5 years and equal to 7% compared to 2022.
Similarly, in the resort townhouse/shophouse segment, primary supply continued to decline (equivalent to 16% over the same period), mostly from primary projects that were opened for sale last year, but no transactions were recorded. The asking price of each unit ranges from 7.1 to 16.3 billion VND.
In particular, the condotel segment in 2023 recorded a significant decrease in primary supply (by 61% compared to the same period), mainly due to the inventory of old projects that were opened for sale before. Overall market demand is low, consumption is only 3% compared to 2022, transactions are mainly concentrated in product groups with selling prices ranging from 3-4 billion VND per unit.
There is unlikely to be a breakthrough in the short term.
DKRA Group forecasts that the supply of land plots in 2024 may decrease slightly compared to 2023, fluctuating around 450 - 550 plots, mainly concentrated in Da Nang and Quang Nam. Primary price levels continue to trend sideways compared to 2023. Liquidity and secondary price levels continue to decline in 2023, especially in projects that have not completed legal procedures and customers using loans.
In the apartment segment, new supply in 2024 may fluctuate at 800 - 1,000 units, mainly concentrated in Da Nang. The proportion of Class A apartment supply is expected to increase, mainly distributed in Ngu Hanh Son district. Primary selling prices do not fluctuate much or have slightly increased due to pressure from input costs. Policies on quick payment discounts, support for principal and bank loan interest deferrals, etc. continue to be promoted to stimulate market demand.
Regarding resort real estate, it is expected that supply in Da Nang and surrounding areas will continue to remain low. Market liquidity will face many difficulties, and there will be few short-term breakthroughs. Primary selling prices will remain stable. Policies to support interest rates, principal grace periods, and payment schedule extensions will continue to be applied by many investors to push the market out of the current slump.
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