A view from the swimming pool at the Da Nang-Mikazuki Spa and Resort– the first five-star resort and entertainment centre in Da Nang Bay. (Photo courtesy of Mikazuki Group)For the first half of 2022, the city received a total of 1.33million tourist arrivals served by established accommodations, up by 26%year-on-year.
MICE guest numbers recorded in February and May jumped eight-foldcompared to the previous year.
In the first half of 2022, there were two new properties, RadissonHotel Da Nang (182 rooms) and Mikazuki Da Nang (294 rooms).
Da Nang’s four and five-star hotel market had 81 projects with15,343 rooms. The number of 5-star and 4-star rooms accounted for 38% and 62%,respectively.
For the first six months of 2022, in Da Nang, the ADR (AverageDaily Rate) averaged 70 USD per room per night, up 11% year on year andthe occupancy rate was reported at 26.3%, up by 15%.
The city expects to welcome 10 new properties with 2,442 rooms,lifting the total supply to 91 properties with nearly 18,000 rooms for the restof 2022.
By 2022, ADR is forecast to rise by 30% year on year standingat 79 USD/room/night, and occupancy would be reported at 53.2%, up by 43.5%year on year.
In 2024, the city’s four and five-star hotel market is projectedto have 99 properties with over 21,000 rooms. The greater number of brandedprojects enhances the upscale hotel market performance. Following that, ADR isexpected to increase at the Compound Annual Growth Rate (CAGR) in 2021to first half of 2024 by 25% per year, possibly reaching 119 USD/room/nightin 2024. Occupancy will rebound to a pre-pandemic level of 63%.
Vacation property market
In the first half of2022, there was only one newly-launched condotel project: Felicia Da Nang (70units launched in the first phase). Currently, the city has a total of 7,384condotel units (from 16 projects) and 2,522 vacation villas (from 13 projects).
For the past threeyears, the Da Nang condotel market had few projects opened for sales. Hence,the primary price hovered at CAGR 2019-21 of 4% per year and currently stood at2,431 USD per square metre. The accumulated sold rate was reported at nearly 85%.
The vacation villasegment recorded no new supply in the same review period. The primary priceremained unchanged and averaged 2,724 USD per square metre.
For the first half of2022, no newly-launched projects are recorded. Currently, Da Nang has a totalof 7,378 condominium units from 20 projects.
Several projects wereintroduced in the period of 2020-2021, even during the pandemic. Market-wideprimary price averaged 1,475 USD per square metre and grew at a CAGR from2019-2021 of 8% per year.
Primary prices currentlystood at 2,100 USD, 1,300 USD and 650 USD per square metre for high-end,mid-end and affordable segments. High-end products rose at the highest, with aCAGR in 2019-2021 of 6% per year, mainly thanks to two projects, The 6Natureand The Sang Residence sold at a relatively high price range comparedto similar grading ones in the city.
Meanwhile, the primaryprice of the mid-end segment slightly went down as FPT Plaza 2 offered 700units for sales at quite lower than the same grading peers.
In the upcoming time,the Da Nang condominium market is expected to thrive, with 10 new projectsto be launched, providing an extra 5,600 units.
Luxury apartments willtake the lead, promoting the market-wide primary price growing at a CAGR in2021-24 of 12% per year.
In the first six monthsof 2022, the city had Sunneva Island firstly launched in the second quarter,with 106 units, including villas and townhouses.
The remaining phase fromRegal Pavillion contributed 34 shophouses to the whole supply. Currently, thecity’s landed property market has 1,624 units (villas, townhouses, shophouses).
In the period of 2019 – 2021, there was no new supply of villasand townhouses; hence, market-wide primary prices kept nearly unchanged,reported at 3,300 USD and 3,450 USD per square metre of land.
Recent launches from Sunneva Island in the first half of this yearpushed the price range to 3,780 USD for villas and 3,900 USD per square metrefor townhouses. Regal Pavillion was first introduced last year and sold at over6,500 USD per square metre, thus leading to a two-fold increase in market-wideprimary price for the shophouse segment during 2019-2021./.
VNA
