The property market in the central city of Đà Nẵng has seen growth in major segments such as condotel, condominium and hospitality markets in the first half of this year. — Photo batdongsandulich.vn

DA NANG – The property market in the central city of Da Nang has seen growth in major segments such as condotel, condominium and hospitality markets in the first half of this year.

According to the report on properties in Da Nang in the second quarter, CB Richard Ellis Viet Nam Ltd Company (CBRE Viet Nam), one of the foreign property service providers in the country, reported that Da Nang's condotel market in the first half of 2016 showed a strong increase in new supplies with 2,436 units from six projects.

New supplies caused the average asking price of high-end projects to go down by 4.8 per cent and mid-end projects increased slightly by 0.4 per cent compared to Q4 2015 while prices at luxury projects kept unchanged.

In terms of sale activities, as of end of May 2016, those projects that were launched in the beginning of the year recorded an average sale rate of 63 per cent, while projects that were just launched a month ago still have a low sale rate.

"Overall, both the condotel and second home markets saw lively movement in sales activity in 2015 and the first half of 2016, especially in increasing sales at launched projects. In particular, vacation projects managed by well-known operators offering fixed annual returns are proving attractive to investment buyers," Marc Townsend, managing director of CBRE Vietnam, said.

Meanwhile, the condominium market started in 2016 with a strong increase in new supply. In the first half of the year, there were 1,000 newly launched units, an increase of 44.6 per cent year-on-year (y-o-y). The asking price of the high-end segment remained unchanged at US$1,623 per sq.m.

In the first five months of 2016, CBRE recorded an estimated 1,000 sold units in the condominium market, up by 74.6 per cent y-o-y.

Regarding the outlook, Townsend said, "Asking prices are expected to remain stable in most projects in the next quarter. Developers will continue offering incentives to encourage prompt payments. Notably, the new housing law which came into force on July 1, 2015, will bring opportunities for foreigners who are allowed to enter Viet Nam are also able to own condominiums and are able to lease, mortgage, contribute as capital, gift, bequest, exchange, etc. However, at present, the number of successful transactions made by foreign buyers has not increased dramatically due to a need for clarification on the legal situation, though there is clear foreign interest in the vacation property market."

CBRE Viet Nam also reported that in the hospitality market, in the first five months, Da Nang welcomed a total of 1,471 new rooms from one five-star hotel, four four-star hotels and six three-star hotels, increasing the accumulated three- to five-star supply to approximately 11,275 rooms, of which three-star hotels make up the largest proportion of 41 per cent.

From 2016 to 2018, the market is expected to welcome more than 3,000 new rooms from 16 under-construction projects. Of these, over 90 per cent will be beachfront properties. — VNS