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Da Nang property market emerges strong
The Da Nang property market has finally arisen from its long slumber; apartments are selling like hot cakes and land prices in the inner city are skyrocketing.
Two years ago, the IRT building in Da Nang City offered to sell apartments after finishing the foundation, but failed to attract any real attention simply because the prices $2,000-2,500/sq m were Da Nang residents’ price range. Those with a lot of money prefer actual property on which they build villas. IRT representatives had to fly to Hanoi, HCM City and even Singapore and Hong Kong to market the apartments.
Now the situation has improved. By June 2007, half the apartments were spoken for by clients and by early December 2007, 95 had been sold, though not all units would be available until the second quarter of 2008.
Other apartment buildings, including Vinh Trung Plaza and True Friends Park, are also selling well. The investor of Vinh Trung Plaza is planning to lease apartments on floors 5 to 12 for a relatively high rent level. A 48 sq m apartment will cost from $900-1,000/month, while a 140 sq apartment be from $2,000-2,500.
The twin tower True Friends Park, expected to be the highest building in the central region with 40 stories and 500 upscale apartments, has also been catching public attention, though construction has not even started yet.
The estimated price for one-bedroom apartments (60-75 sq m) is $65-71,000, for two-bedroom apartments (90-120 sq m) is $72-90,000, while the price for 3-4-bedroom (more than 200 sq m) is $200-240,000; one downside is that clients must wait two years.
CBRE, a commercial real estate company, forecasts there will be a steady flow of Vietnamese and foreign investors into Da Nang who need luxurious accommodations.
Meanwhile, the prices of property in the inner city have increased by three times that of six months ago. Real estate fever has hit on Nguyen Van Linh Road, which is slated to become the financial center of the central region.
Land is now going for VND80mil/sq m, considerably up from VND30-40mil/sq m only several months ago.
Hoang Dinh Dung, Director of the A Chau Real Estate Trading Floor, said that Nguyen Van Linh road will become a major boulevard and home to many banks. He said the price may hit VND100mil/sq m.
Meanwhile, the price of land on Hung Vuong road, another main avenue, has increased from VND40mil to VND70mil/sq m.
Analysts say the price increases are attributable to more people with more money buying nicer houses and apartments. Besides, speculators are also currently interested in houses and land after success with lucrative investment deals.
VNN
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