Danang condo price surges to record high

Newly-launched projects such as Risemount Apartment located at Thuan Phuoc ward, Hai Chau district is being offered at the price of $2,600 per square metre for normal units and for the ones with scenic view, the price can go up to over $3,500 per square metre.

Similarly, the average price per square metre for an unit at the Heritage Treasure Danang - Hilton Da Nang project located at 50 Bach Dang street is around $3,100 to $4,800.

Other projects such as Azura Da Nang, A La Carte and Indochina Riverside have also increased their prices tremendously. 

Specifically, in 2015 the Azura Da Nang project was initially offered at the price of $1,200 to $1,500 per square metre for an unit. Nevertheless, at present the transfer price on the secondary market has gone up to $1,800 to $2,400 per square metre for an unit.

Although being offered at very high prices, apartments in Danang city are sold out rapidly as most of the projects have exceptional locations and good quality. 

For example, the sale of Risemount Apartment in the recent time has become a phenomenon in the real estate market in Danang city. During the first launch, in just a day and a half 99 apartments were ordered and in the second referral nearly 100 apartments were purchased in just half an hour.

According to Nguyen Thi Minh Nguyet, Deputy General Director of Beehouse Investment Joint Stock Company (JSC), unlike condotel, luxury apartment is much more attractive to buyers since it provides clients with legal stability from the long-term ownership certificates i.e the red book and also the high business value of this property type.

Nguyet also mentioned that due to the particularity of the coastal city, apartment in Danang city is not only valuable as normal property but it also incorporates the value of a vacation property with the ability to sublease. 

Because of these combined values, the prices of apartments in Danang city are typically much higher.

Limited land fund is also a significant contributor to the high price of luxury apartment segment in Danang city.

According to representatives of BeeHouse Investment JSC and the report of Realtor Vietnam in the first quarter of 2018, the land fund to build residential apartments in Danang city is becoming scarcer. 

Meanwhile, the population and the demands to buy houses and lands in Danang city are growing stronger. At the same time, traditional investors come from Hanoi city and Ho Chi Minh City also increase in terms of quantity and investment scale.

Additonally, a large number of new investors from highland areas such as Gia Lai province, Kon Tum province, Buon Me Thuot city also show interests in the Danang real estate market creating even larger demand, which explains for the sharp price increases of the luxury apartment segment in Danang city in the first quarter of 2018 and more likely to continue increasing in the near future.