After a long “freeze” caused by the pandemic, Da Nang's real estate market is basking in a bright new outlook thanks to its new master plan, opening up many investment opportunities and moving toward sustainable development.
A BOOST FROM PLANNING
“We will never stop striving to do better every day, retaining our long-standing investors while opening our doors to promising new ones. Da Nang may not yet be the best place, but we will work hard to become the place you are most satisfied with”, affirmed Mr. Le Trung Chinh, Deputy Secretary of the City Party Committee and Chairman of the Da Nang City People's Committee.
Da Nang City is entering a new stage of development with high expectations. First and foremost is its new, dedicated leadership, ready to work alongside businesses and investors to build an ever-better city for its people.
From the very start of the new term, city leaders took a number of positive steps to address the shortcomings of the previous administration, meeting with businesses, listening to them and resolving their difficulties. A notable example is the Da Nang City government's bold support for adjusting the Cocobay project plan, converting it from tourist apartments – hotels (condotels, which do not constitute residential units) into apartments, villas and townhouses that do constitute residential units…
With this planning adjustment, the Cocobay project has been “reborn”, transformed from a resort and tourism destination into a mixed-use urban area with a full range of functional zones for residents, while also serving tourists and high-end vacationers. It is one of the projects helping to reshape Da Nang's urban landscape and raise the quality of accommodation for visitors.
Building on the success of the Cocobay project and the restart of several other projects, Da Nang's real estate market began to pick up from late 2020, recording a number of genuine transactions as investors regained confidence in the city's new administration.
Moreover, under the general master plan of Da Nang City to 2030, with a vision to 2045, recently approved by the Prime Minister, Da Nang will become one of the major socio-economic centers of the country and of Southeast Asia, serving as a hub for startups, innovation and tourism. Da Nang's population is forecast to reach around 1.79 million by 2030, and the city's urban construction land will cover approximately 31,836 ha.
In the future, Da Nang will become an international city and part of the global supply chain network; a gateway to the East–West Economic Corridor; a destination for global lifestyles; and a hub for tourism, services and the marine economy of Vietnam and Southeast Asia…
Under the master plan approved by the Prime Minister, Da Nang will develop a number of major transport projects. Specifically, Da Nang International Airport will continue to be upgraded and expanded to a capacity of 30 million passengers per year at level 4E, serving as an international gateway airport with a planned land area of about 856 ha.
In the city center, Le Duan Street is planned to connect with Dong Da Street, creating a continuous axis from Dien Bien Phu Street to 3 Thang 2 Street; Hoang Hoa Tham Street is planned to extend to Nguyen Tat Thanh Street (through the existing railway station area), forming a main through-route of Nguyen Huu Tho – Le Dinh Ly – Hoang Hoa Tham – Nguyen Tat Thanh to ease congestion on nearby roads.
In addition, there are plans to build a tunnel under the river connecting Dong Da – Tran Phu streets with Van Don – Tran Hung Dao streets, and a road bridge linking 29 Thang 3 Street in Cam Le District with Bui Ta Han Street in Ngu Hanh Son District…
In addition, Da Nang is stepping up the dredging of the Co Co River to connect with Quang Nam. Both riverbanks are planned for tourist marinas combined with parks, entertainment areas, eco-tourism zones and community tourism villages… The chain of projects along the Co Co River will create strong momentum for an urban corridor linking Da Nang with Hoi An…
Moreover, in early March 2021, the Chairman of the Da Nang City People's Committee signed a decision approving a list of 57 key projects prioritized for investment attraction. These include a mass rapid transit system comprising a metro and tramway network, with an estimated total investment of VND 54,500 billion, and a light rail line connecting Da Nang Airport through the city center and along the coastal route to Hoi An Ancient Town, with an estimated investment of VND 7,497 – 14,995 billion.
Bên cạnh đó là các dự án lớn về lĩnh vực giáo dục, điểm nhấn là Khu đô thị đại học (quận Ngũ Hành Sơn, diện tích 20ha) vốn đầu tư dự kiến 342 tỷ đồng và Trường đại học Quốc tế (huyện Hòa Vang) tổng vốn đầu tư dự kiến 1.138 tỷ đồng…
In healthcare, plans include a high-quality international oncology treatment center with 500 beds and an estimated total investment of up to VND 11,000 billion.
In tourism, services and trade, 11 projects have been prioritized for investment attraction. Notable among them are an international marina (from Bach Dang Street to Nhu Nguyet Street), the conversion of Tien Sa Port into a tourist port, a botanical garden (Hoa Vang District, 200 ha) and an underground shopping and entertainment center (Ngu Hanh Son District, 3 ha) with an estimated investment of VND 910.8 billion…
All of this points to a future Da Nang City worthy of being one of the most livable cities on an international scale. According to many experts, the Government's approval of Da Nang's general master plan also provides an important legal basis for developers to restart projects and launch new ones in line with the plan.
In short, the new master plans, together with the authorities' efforts to resolve land-related legal bottlenecks, are providing a major boost to Da Nang's urban development in general and its real estate market in particular, drawing investors back to reinvigorate the market after a long period of stagnation.
“With the pilot urban government model and a new administration, I believe there will be more open mechanisms that unlock resources and create conditions to attract investment more strongly,” said Dr. Le Xuan Nghia, Member of the National Financial and Monetary Policy Advisory Council.
WHERE ARE THE INVESTMENT OPPORTUNITIES?
Following the planning announcements and a 10% reduction in commercial and service land prices, a wave of investors is eagerly returning to Da Nang in search of real estate products, especially land plots and resort properties, after a long period in which the market was frozen by the Covid-19 pandemic.
However, unlike the speculative land fevers sweeping across the country, which carry significant risks because they are fueled by planning rumors, Da Nang's real estate market in early 2021 is developing more steadily with a long-term vision, underpinned by genuine potential and accurate, transparent planning information.
Alongside these planning highlights, the inherent potential of a beautiful, highly livable city that welcomes large numbers of tourists every year is a strong guarantee of sustainable growth in Da Nang's property values going forward.
Since the beginning of 2021, land prices in Da Nang have been edging back up, though only by a few million dong per m². According to many experts, real estate prices in Da Nang are still hovering around the bottom of the cycle, below their true value, while land prices in Hanoi and Ho Chi Minh City remain high. The gradual rise in land prices signals that Da Nang's real estate market is ready to heat up again and enter a new cycle of price growth. Investing in Da Nang real estate now represents a major opportunity for savvy investors.
“Land prices in Da Nang are low, and in many areas have even bottomed out. Land plots remain the optimal segment for long-term investment. Even if they face temporary setbacks, they will certainly recover in the long run. At this golden moment, investors who hesitate will miss the opportunity,” assessed Dr. Le Xuan Nghia, Member of the National Financial and Monetary Policy Advisory Council.
Mr. Nguyen Manh Ha, Vice Chairman of the Vietnam Real Estate Association, also noted that, combined with the city government's experience in controlling real estate bubbles, the Da Nang market is forecast to make a comprehensive breakthrough, with prices rising steadily and sustainably over time. This also creates opportunities for investors with a long-term outlook.
At this time, experts believe that completed projects with full legal status will be the ideal investment choice ahead of the return of tourists, especially as a series of stimulus programs fuels a rise in domestic travel, making Da Nang a destination not to be missed.
A case in point is The Empire – Cocobay Da Nang resort and high-end residential project, one of the few projects in Da Nang today with complete legal documentation and a clear roadmap for ownership certificates, and which goes on sale only once construction is nearly complete.
In addition to condotel units as before, the project now offers many new products such as apartments, villas and townhouses… with distinctive designs and comprehensive social infrastructure, creating a vibrant residential, tourism and resort destination. The developer's efforts to complete the project's legal framework and revive it from a “quagmire” have drawn strong interest in The Empire Resort & Luxury Residences from both homebuyers and investors.
Source: Reatimes.vn