Da Nang city has approximately 76,300sq.m of office space stock spreadacross 21 buildings and has remained unchanged quarter-on-quarter (QoQ)but increased by 12 per cent year-on-year (YoY).
According to areport from Savill Vietnam, a property consultancy firm, withapproximately 55,700sq.m from 17 projects, Hai Chau district in thedowntown continues to be the main supplier of office space, accountingfor 73 per cent market share. Thanh Khe district has 20,600sq.m fromfour projects.
The average occupancy rate during the first halfof this year was 86 percent, up three points (ppts) QoQ but down minus 1ppt YoY. Grade A's occupancy was 97 percent, with QoQ remainingunchanged but YoY increasing three ppts. Grade B occupancy rate was at84 percent, up 5 ppts QoQ, while Grade C was 85 percent occupied, up 1ppt QoQ.
Do Thu Hang of Savills Vietnam said: "Although it isstill adjusting to new developments, Da Nang's real estate market isconsidered to have great potential for a number of factors. Da Nang nowhas an international airport offering many direct flight services. Italso has golf courses, casino, and a lot of large-scale entertainmentcentres, in addition to beautiful coastlines and several heritage sitesin the centre of Vietnam. With the Amended Housing Law coming intoeffect from July 2015, demand is expected to soar."
The reportalso revealed that the total area leased was approximately 65,400sq.m,up 4 percent compared with 2014. At 75 percent, demand for office spacein Da Nang was mostly focussed in Hai Chau district.
According tothe Vietnam Chamber of Commerce and Industry (VCCI), Da Nang hascontinuously ranked first on the Provincial Competitiveness Index (PCI)2014, reflecting its attractive investment location.
SavillsVietnam expects that from the second quarter, some 15 projects willoffer some 93,600sq.m of office space. However, their launch dates areunclear because of the slow pace of the construction of a number ofthese projects.
In 2015, one new project is expected to enter Da Nang's office market, supplying some 20,400sq.m
Meanwhile,in the residential sector, no new villa or apartment projects wereintroduced in the central city during the first quarter this year.
Villastock remained stable at 927 dwellings from 16 projects, unchangedsince 2012. Compared with the second half of last year, the primarymarket saw 11 projects with 395 dwellings, down minus 5 per cent and thesecondary market introduced 16 projects with 532 dwellings, upapproximately 4 percent.
There were approximately 3,100apartments across 14 projects and 678 units across 12 projects in theprimary market, down minus 14 percent against the second half of 2014.The secondary stock consisted of 2,431 units from 14 projects, upapproximately 49 percent against the second half of last year.
Despitethe good performance, the villa absorption rate remained soft at 4percent due to a low market sentiment. The average villa price wasapproximately 25 million VND (1,190 USD) per sq.m, up 11 percent againstthe second half of 2014.
The apartment absorption rate was 11percent during the first quarter of this year due to transactions incentral and affordable projects with prices below 20 million VND (952.4USD) per sq.m. The average price was up 17 percent against the secondhalf of last year. The prices of apartments in and around the city'scentre ranged from 13 million VND to 51 million VND (619-2,428 USD) persq.m, while beachside apartments ranged from 21 million VND to 73million VND (from 1,000 USD to 3,476 USD) per sq.m.
According tothe real estate consultancy company, some of the key factors that mayaffect buying decisions include developers' reputation, constructionstatus, price and location. Several recent purchases had been done byforeign or buy-to-let investors.
The company has noted thatstarting 2015, 1,300 dwellings offered by 12 villa projects and 16,870units across 15 apartment projects will enter Da Nang's market. WhileSon Tra district continues to have the largest future villa supply, HaiChau district remains the top future apartment supplier. Most futurevilla and apartment projects are in the planning stage and do not haveclear construction schedules; this makes it difficult to forecast theirlaunch dates.
The total retail stock in the first quarterremained at approximately 136,000sq.m, up 5 percent (QoQ) and stableyear-on-year (YoY), due to the entrance of Parkson Vinh Trung Plaza.
Modernretail zones are centred across three districts: Thanh Khe with 41percent share, Hai Chau with 35 percent share, and Cam Le with 24percent share.
In the first three months of this year, bothoccupancy and average rates improved QoQ but fell YoY. Occupancy ratewas up 5 ppts QoQ thanks to the good performance of Parkson Vinh TrungPlaza, but down minus 1 ppt YoY. The average rent increased 6 percentQoQ and minus 7 percent YoY.-VNA
According to areport from Savill Vietnam, a property consultancy firm, withapproximately 55,700sq.m from 17 projects, Hai Chau district in thedowntown continues to be the main supplier of office space, accountingfor 73 per cent market share. Thanh Khe district has 20,600sq.m fromfour projects.
The average occupancy rate during the first halfof this year was 86 percent, up three points (ppts) QoQ but down minus 1ppt YoY. Grade A's occupancy was 97 percent, with QoQ remainingunchanged but YoY increasing three ppts. Grade B occupancy rate was at84 percent, up 5 ppts QoQ, while Grade C was 85 percent occupied, up 1ppt QoQ.
Do Thu Hang of Savills Vietnam said: "Although it isstill adjusting to new developments, Da Nang's real estate market isconsidered to have great potential for a number of factors. Da Nang nowhas an international airport offering many direct flight services. Italso has golf courses, casino, and a lot of large-scale entertainmentcentres, in addition to beautiful coastlines and several heritage sitesin the centre of Vietnam. With the Amended Housing Law coming intoeffect from July 2015, demand is expected to soar."
The reportalso revealed that the total area leased was approximately 65,400sq.m,up 4 percent compared with 2014. At 75 percent, demand for office spacein Da Nang was mostly focussed in Hai Chau district.
According tothe Vietnam Chamber of Commerce and Industry (VCCI), Da Nang hascontinuously ranked first on the Provincial Competitiveness Index (PCI)2014, reflecting its attractive investment location.
SavillsVietnam expects that from the second quarter, some 15 projects willoffer some 93,600sq.m of office space. However, their launch dates areunclear because of the slow pace of the construction of a number ofthese projects.
In 2015, one new project is expected to enter Da Nang's office market, supplying some 20,400sq.m
Meanwhile,in the residential sector, no new villa or apartment projects wereintroduced in the central city during the first quarter this year.
Villastock remained stable at 927 dwellings from 16 projects, unchangedsince 2012. Compared with the second half of last year, the primarymarket saw 11 projects with 395 dwellings, down minus 5 per cent and thesecondary market introduced 16 projects with 532 dwellings, upapproximately 4 percent.
There were approximately 3,100apartments across 14 projects and 678 units across 12 projects in theprimary market, down minus 14 percent against the second half of 2014.The secondary stock consisted of 2,431 units from 14 projects, upapproximately 49 percent against the second half of last year.
Despitethe good performance, the villa absorption rate remained soft at 4percent due to a low market sentiment. The average villa price wasapproximately 25 million VND (1,190 USD) per sq.m, up 11 percent againstthe second half of 2014.
The apartment absorption rate was 11percent during the first quarter of this year due to transactions incentral and affordable projects with prices below 20 million VND (952.4USD) per sq.m. The average price was up 17 percent against the secondhalf of last year. The prices of apartments in and around the city'scentre ranged from 13 million VND to 51 million VND (619-2,428 USD) persq.m, while beachside apartments ranged from 21 million VND to 73million VND (from 1,000 USD to 3,476 USD) per sq.m.
According tothe real estate consultancy company, some of the key factors that mayaffect buying decisions include developers' reputation, constructionstatus, price and location. Several recent purchases had been done byforeign or buy-to-let investors.
The company has noted thatstarting 2015, 1,300 dwellings offered by 12 villa projects and 16,870units across 15 apartment projects will enter Da Nang's market. WhileSon Tra district continues to have the largest future villa supply, HaiChau district remains the top future apartment supplier. Most futurevilla and apartment projects are in the planning stage and do not haveclear construction schedules; this makes it difficult to forecast theirlaunch dates.
The total retail stock in the first quarterremained at approximately 136,000sq.m, up 5 percent (QoQ) and stableyear-on-year (YoY), due to the entrance of Parkson Vinh Trung Plaza.
Modernretail zones are centred across three districts: Thanh Khe with 41percent share, Hai Chau with 35 percent share, and Cam Le with 24percent share.
In the first three months of this year, bothoccupancy and average rates improved QoQ but fell YoY. Occupancy ratewas up 5 ppts QoQ thanks to the good performance of Parkson Vinh TrungPlaza, but down minus 1 ppt YoY. The average rent increased 6 percentQoQ and minus 7 percent YoY.-VNA
