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Condotel, villas ‘sold out’ in Da Nang

Condotel, villas sold out in Da Nang

The absorption rate of the condotel segment in Da Nang is up to 78%, resort villas are 88%. In some areas, the absorption rate is up to 98%, reports Colliers International.

Condotel most expensive Da Nang: More than $ 2,800 / sqm

According to Colliers International, the Da Nang market has a total of 6,779 condotels from 13 projects, since Hyatt Regency, the first five-star hotel project, entered the market in 2008, marking a milestone. The importance of recognizing a hotel apartment model is a form of formal investment.

Condotel and resort villas are very good consumption in Da Nang
Condotel and resort villas are very good consumption in Da Nang

2016 is the recovery year for the hotel market with nine projects entering the market. However, in Q1 / 2017, only Hoa Binh Green Da Nang project opened the sale of the remaining apartments, bringing the total primary supply to about 6,297 units.

The districts of Ngu Hanh Son, Son Tra and Hai Chau are the main source of large-scale luxury projects, mainly due to the advantages of nature and advanced infrastructure. In particular, Son Tra district has the largest supply, accounting for 51% of the primary market, followed by Ngu Hanh Son district and Hai Chau district with market share of 40% and 9% respectively.

Condotel Danang is quite well-consumed in the first quarter of 2017, the average absorption rate of the primary market is 77.84%, equivalent to 4,622 apartments sold, mostly from the project. New projects are introduced into the market. Vinpearl Riverfront Condotel is currently the most demanding project with the absorption rate up to 100%.

In terms of location, Hai Chau district has the highest absorption rate of 98%, followed by Son Tra district and Ngu Hanh Son district with 72% and 70%, respectively.

Average prices of primary market ranged from $ 1,412 / m2 to $ 2,845 /sqm. The highest average selling price was recorded in Son Tra district at $ 2,161 / sqm. Next is Ngu Hanh Son district with an average selling price of $ 1,896 / sqm and Hai Chau district is $ 1,794 / sqm.

Wyndham Soleil is considered as the most expensive project in Son Tra district in particular and Da Nang city in general with the average selling price per square meter is $2.845.

Vingroup resort villas are the most expensive

Only one condominium project is open for sale in the fourth quarter of 2016 and there are no projects in the first quarter of 2016, Colliers International said.

Ngu Hanh Son continues to be the leading supplier of 393 apartments, accounting for 69% of the market. Next is Son Tra district with about 31%. After positive moves, the market is expected to put 1,063 new villas in the period 2017-2018 from the old projects have deployed.

Condotel, villas sold out in Da Nang
Condotel, villas sold out in Da Nang

In particular, there will be more luxury beachfront projects entering the market this year, with notable projects including Intercontinental Sun Peninsula Resort, Ba Na Hills, Bai But Bay Resort Complex and The Song .

The average asking price of a resort in Da Nang ranges from $ 1,059 to $ 2,091 per square meter. Vingroup continues to show its reputation as Vinpearl Luxury Danang 1 offers the highest average selling price on the primary market with about $ 1.6 million for each villa.

The demand for luxury condominium segment comes mainly from Hanoi and HCMC. HCM. About 80% of buyers come from Hanoi, followed by HCMC with 5%. The remaining shares belong to overseas Vietnamese or foreigners and residents from neighboring provinces.

These customers purchase villas for condominium rental and rental through a rent-to-rent scheme with a conventional share of 85% of the rent after deducting operating expenses and the costs involved.

Colliers International said that the three-bedroom villa project is expected to be the main product and the land area will fall to about 400-500sqm to expand the customer base and meet the demand. The buyer has a lower budget.

With an absorption rate of 88%, it is expected that demand for resort villas will continue to increase. Stable macroeconomic conditions and low interest rates are one of the key factors that motivates clients to make the decision to invest in resort villas.

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