Despite the impact of the pandemic, the Da Nang real estate market still has many positive factors, raising expectations of a strong breakthrough as early as Q2 2021.
Da Nang poised for special development status
After a long period affected by the pandemic, Da Nang's real estate market is expected to gain a stronger position for growth, with prospects of a robust recovery and acceleration thanks to a series of infrastructure planning projects and long-term development strategies.
Specifically, at a recent working session with the Da Nang City authorities, representatives of the Prime Minister's Office stated that, after Ho Chi Minh City and Hanoi, Da Nang is the next city slated to become a special-class urban area. The goal for 2030 – 2045 is for it to become a socio-economic center of the country and Southeast Asia, serving as a hub for tourism, trade, finance and logistics. The city will focus resources on developing its infrastructure system while expanding investment attraction, developing a series of key urban areas and consolidating its position as a top destination for domestic and foreign investors.
The government's expectations for Da Nang City are being realized through a series of long-term development plans. Among its 57 key projects for 2020-2025, Da Nang plans to spend more than USD 2 billion on a metro system, with an east–west line connecting Lien Chieu District through central Thanh Khe District to Son Tra, and a north–south line linking the Son Tra Peninsula with Khue Trung and Cam Le. Da Nang is also seeking VND 14,990 billion to build a rail line connecting to Hoi An Ancient Town and more than VND 8,000 billion for a tunnel under the airport leading to western Da Nang. It is also calling for investment in Lien Chieu Port, one of the country's three most important seaports.
In addition, efforts to attract international investment into Da Nang are being stepped up. Besides Arevo (USA) proposing a USD 135 million investment to develop a 10.6 ha project in the Da Nang Hi-Tech Park, the city has also granted investment registration to six other major projects, including three foreign direct investment projects worth nearly USD 150 million from Japan and the United States.
With Covid-19 vaccines now in use, Da Nang is forecast to enter a period of strong economic growth, adding value to real estate. Data from Batdongsan.com.vn shows that in Q1 2021, demand for searching and investing in real estate in Da Nang rose 32% compared to Q4 2020. Many experts forecast that Da Nang real estate will regain liquidity and heat up again from Q2 2021.
Opportunities open up in new markets
Also under the 2021 – 2030 planning scheme, Da Nang will continue to focus on expanding urban development toward the northwest and implementing a population redistribution plan to ease pressure on the city center. Da Nang's population will exceed 2 million by 2030, and the Northwest urban area will expand to about 37,000 ha, becoming the focal point of growth for the Da Nang market.
Under this development plan, the northwest is Da Nang's strategic development direction, with a series of key works and modern urban areas under way, stimulating real estate growth. One of the leading projects is the Western Ring Road, whose section from National Highway 14B to the Ho Chi Minh Road has been approved with a total investment of VND 1,499.776 billion. The Hai Van road tunnel expansion project, which will boost trade in northwestern Da Nang; the Lien Chieu Port project (total investment of VND 33,000 billion); the extension of Nguyen Tat Thanh Road to Lien Chieu Port, the renovation of the Nguyen Tat Thanh coastline and the construction of Nguyen Tat Thanh Square… will serve as levers for the socio-economic development of western Da Nang.
Experts believe that northwest Da Nang will become a golden land with a series of large-scale investment projects such as Vinpearl Lang Van, Nam O Tourist Area, Nguyen Tat Thanh Square, the Mikazuki Japanese Resort & Spa, the “Da Nang Silicon Valley”, Kim Lien Station, the University Village and several new residential and tourism projects. This is a buying opportunity for investors with idle capital and long-term vision to enter the real estate market with a medium- to long-term investment strategy.
Experts say Da Nang's real estate market has just come through a difficult period and will now see a shake-out. Homebuyers are more cautious, choosing projects with solid legal status, reputable developers and high construction quality. Demanding customers are pushing businesses to take a more serious approach to the sustainable development of their real estate products. Accordingly, projects that meet both housing and investment needs, guarantee long-term ownership, and emphasize structural quality and aesthetics will be the safe choice favored by buyers. In particular, projects with prime locations and sea frontage have great potential to become a strong growth trend.
Source: Bao Moi