In the first months of 2017, a series of real estate investment poured billions of dollars into Southeastern of Danang, making coastal “diamond land” in the Son Tra and Ngu Hanh Son districts rise sharply.
Before the current strong investment wave, this price is expected to continue to increase in the coming period.
A series of super projects is landing
Previously, the “district 3” of Danang (including Ngu Hanh Son district and Son Tra district) was known as a land of poor fishing villages and sloping hills, now this land has been transformed into a powerful resort capital of Vietnam.
According to Savills, the Da Nang market has fully converged on the elements of right time – right place – right person that no market has ever had: perfect infrastructure, favorable natural scenery, the government has clear policies to attract investment, tourists to Da Nang has strongly developed each year (reaching nearly 6 million visitors in 2016).
In particular, in 2017, Danang will host APEC’s high-level week, the conference itself will open the “billion” opportunities for the Danang market: nearly 15,000 visitors to the conference, more than 1,000 entrepreneurs seek investment opportunities, nearly 6,000 reporters reported and tens of billions USD poured out to upgrade and build infrastructure.
In fact, in the last months of 2016, in early 2017, the region witnessed an unprecedented surge of real estate tycoons. There are projects such as Golden Hills 1.6 billion USD of Trung Nam Group, Foodinco’s F-Home, FPT City Danang with a total area of 181 hectares, The Sunrise Bay 183 hectares of Novaland; Anh Duong – Soleil 440 million USD of PPC An Thinh, Alphanam Luxury Apartment, Hoa Binh Green City, Furama Aryana, Hyatt Regency,…
Especially apart from the type of real estate resort, in early 2017 Danang also appeared the type of real estate that has never been before in Vietnam. Highlights include the Wellness Condotel with the appearance of Coco Ocean-Spa Resort in Cocobay. This is the first and only “Wellness Condotel” complex in Danang, which owns the Spa & Fitness Center of up to 4,500 sqm and also is the largest condotel in Vietnam until now.
Land prices have skyrocketed
Surveys show that lots of land along the coastal roads such as Vo Van Kiet, Vo Nguyen Giap, Pham Van Dong, Truong Sa, Hoang Sa in Son Tra district, Ngu Hanh Son district had the selling price at 1,956-2,173USD/sqm one year ago;They have so far increased to less than 4,347USD/sqm.
In some key areas such as My An, Khue My, Hoa Hai (Ngu Hanh Son district), Phuoc My (Son Tra) land prices have even increased by 400% compared to this time last year. The lands near the sea or the Han River about 2-4km also increase in price, many places where the price of land is so high as the East of Ho Chi Minh City.
Not only land, condotel apartments in the coastal areas also have quite impressive price increases on the market, as high as the central apartment Saigon. It may mention Coco Ocean-Spa Resort is priced at 1,739USD/sqm, Aryana Furama 2,173USD/sqm, Luxury Alphanam is selling at 1,739USD/sqm, Peace Green 1,478USD/sqm, Naman Garden trading at 1,956USD/sqm.
Apart from the landscape, infrastructure and APEC factors, one of the big reasons investors are pouring money into resort projects is the lack of 4-5 star hotels in Da Nang. According to the latest report of Da Nang Tourism Department, high-end hotels are enjoying very high rates of occupancy and are increasing steadily from 60% -70% annually.
As a result, the return on investment is huge.For example, a project that is generating waves in the Da Nang market is Coco Ocean-Spa Resort, each of this unit is priced at 78,260USD / unit, with the price in Da Nang about 121USD per night for 4-star hotel room, average room occupancy rate is 65%, and the annual rental revenue is about 27,695USD. The profit is about 17,391USD (including the operating, maintenance and sales costs)In particular, the profit that customers receive is 13,913USD, equivalent to 17% a year, quite attractive compared to the interest rates for banking or real estate investment in Saigon or Hanoi.
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