In the near future, the supply of condotels in Da Nang will continue to expand, leading to fiercer competition. (Photo: batdongsanexpress.vn)HCM City (VNS/VNA) - Due to the unclearregulations on condotels, the market in Da Nang slowed down in the firstquarter, according to Colliers International Vietnam’s Quarterly KnowledgeReport.
Buyers are becoming more cautious about developers’ promises of lofty returns,and developers themselves are also adopting caution before introducing newproducts, the report on the first quarter real estate market said.
Though the future of condotels is unclear, investors evidently have persistentinterest in the potential for future returns.
In the near future the condotel supply in Da Nang will continue to expand,leading to fiercer competition between developers.
Thus, new projects will have to differentiate themselves by unique design andattractive sales policies.
The average condotel absorption rate in Da Nang remained high at more than 80percent due to the trust investors seem to have in the market’s potential forlong-term returns.
Condotels in Hai Chau District recorded the highest absorption rate at almost90 per cent, followed by Son Tra District and Ngu Hanh Son District with 73 percentand 71 percent.
The average primary price reached 2,250 USD per square metre at the end ofMarch.
The demand for condotels came mostly from investors in the north, particularlyHanoi, who accounted for more than 80 percent of the buyers.
Da Nang is seen as an up-and-coming coastal city with excellent transportationinfrastructure, a big increase in the number of international flights and asteady rise in the number of visitors.
The second home-villa supply is extremely limited in Da Nang with only 60projects, all in Ngu Hanh Son and Son Tra districts.
On average, the asking price in Da Nang ranges from1,100 USD per square metre to more than 2,200 USD.
Key drivers of success for properties are the developer’s reputation, salespolicies and proximity to the beach.
In the city more than 95 percent of second home-villas have been sold out.
With announcements about future supply not made, it is expected the currentlack of supply will persist.
According to Savills report, in the second half of 2018 a total of 14 projectssupplied condotels.
No new projects or phases have been launched.
Ngu Hanh Son District accounted for 52 percent of thecondotel supply.
In the second half of last year the absorption rate increased by 9 percentagepoints due to limited primary supply.
Prices were 1,800-3,800 USD.
Starting this year 16 projects will be completed and come online.
In the second half of last year villas were supplied by 16 projects.
Ngu Hanh Son District was again the largest supplierwith a 91 percent share from 13 projects.
In 2019 45 projects will be completed.
There were approximately 13,400 hotel rooms at the end of 2018.
This year 2,200 three- to five-star rooms will come online.- VNS/VNS
