In the first half of this year, the average primary price of condotel in Danang increased by 19 per cent to reach $2,100 per square meter, according to Savills.
Supply of condotels in Danang is increasing strongly
According to Savills' report on Danang real estate market in the first six months of 2018, the stock came from 15 projects. Ngu Hanh Son district was the largest supplier with a 57 per cent market share.
New projects and next phases provided approximately 1,570 units to the market, most from a project by The Empire Group.
The reduction of new supply in 2017 is believed to be the main reason for this market to have more time to absorb the inventory backlog and increase the liquidity.
Until the first half of this year, along with the increase in supply, the price of condotel primary in Da Nang also recorded a strong increase, reaching an average of $2,100 per square meter, 19 per cent higher than the same period of last year. This is one of the main reasons for the eight per cent decrease in the absorption rate to 86 per cent.
In terms of second home villas, the total villa stock was from 15 projects. Ngu Hanh Son district was the largest supplier, representing a 91 per cent share from 12 projects.
No new supply and stable demand resulted in market-wide absorption of 86 percent. Developer reputation guaranteed returns and beach proximity were key success drivers.
According to Savills, 45 dwellings will come online in the last six months of this year.
Savills' report also shows that the hotel market in Danang is showing positive signs with the total stock from the 109 three- to five-star hotels being approximately 12,900 rooms.
Danang continues to establish itself as a leading destination for domestic and international tourists. In the first half of this year, Danang welcomed four million visitors, 29 per cent higher than the same period of last year; and international visitors were up 47 per cent year on year to 1.6 million.
Savills says that approximately 1,400 three- to five-star rooms will come online in the last six months of this year.
New apartments with diversified and unique amenities are increasing competition within the market, which is expected to be extremely beneficial to both consumers and the real estate market in Vietnam.
New apartments with diversified and unique amenities are increasing competition within the market, which is expected to be extremely beneficial to both consumers and the real estate market in Vietnam.
Vietnam's hospitality industry is undergoing a major transformation with a brand repositioning strategy that emphasizes unique, sustainable, and community-focused experiences.
Hanoi is set to receive a significant future supply of over 100,000 apartments starting from 2025, a tenfold increase compared to the current availability.
