Hanoians rushing to Da Nang to purchase high grade villas, apartments

Nearly 80 percent of the customers who buy high grade villas and apartments at real estate projects in the central city of Da Nang come from Hanoi, according to Savills, a real estate service provider. Meanwhile, clients from HCM City account for 13 percent, and the other buyers are foreigners, Viet Kieu (overseas Vietnamese), and residents from other provinces and cities.

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Though the real estate market in Vietnam remains gloomy, the Da Nang market remains bright. Located in the central region, the city has beautiful beaches and landscapes that offer good opportunities for investors.

According to the Da Nang Statistics Office, about 2,100 new businesses got operating licenses in 2009, an increase of 23 percent over 2008. The number of businesses established in the last five years has increased rapidly. The increasingly high investment from Viet Kieus is also an important factor that leads to high demand for business offices in the city.

In 2009, the volume of kieu hoi (overseas remittance - or money sent by Viet Kieus to their relatives in Vietnam) to residents in Da Nang City was $94.6 million. In 2009, the city received 4,715 Viet Kieus who returned to visit their homeland.

Viet Kieus now own 57 businesses in Da Nang City, which has received a total of $500 million in investment capital. This has had a large impact on the trade and real estate market in Da Nang City, especially for leasing offices, villas, and apartments.

Recent surveys show that all the luxury villa projects are located in the areas along Da Nang’s beaches. In the second quarter of 2010, two new villa projects were launched, including Dune Residence and Vinpearl Da Nang.

At the same time, two apartment projects were marketed, Bau Thac Gian and Vinh Trung Plaza. Now Da Nang Market has eleven apartment projects with 2,300 apartments on sale.

All the apartments at Indochina Tower and Da Nang Plaza have been sold. The apartments for sale are now mostly located in four districts, Hai Chau, Thanh Khe, Ngu Hanh Son, and Son Tra.

The villa sale prices in Da Nang City are between $800 and $3900 per square meter, while the prices for apartments are between $750 and $3000 per square meter.

The most interesting characteristic of real estate in Da Nang is that sale prices do not depend so much on the area of apartments and villas, but rather on the positions and the views of the apartments and villas. Most buyers will prioritize the purchase of villas with a view of the sea, or villas near the sea.

According to Savills, the main buyers of the luxury real estate products in Da Nang are not foreigners or Viet Kieus with dollars in their pockets, but Vietnamese high-income earners. The majority of buyers are from Hanoi (80 percent) and HCM City (13 percent). Meanwhile, the other eight percent of buyers include foreigners, Viet Kieus, and residents from other provinces and cities.

Source: Dan tri