Danang offers opportunities to 'hunt' properties with deep discounts: expert

By Thanh Van, Huong Dung
Tue, November 29, 2022 | 2:53 pm GMT+7

For those with idle capital, Danang is offering opportunities to "hunt" products with deep discounts in beautiful locations, says Vo Hong Thang, R&D deputy director of property consultancy DKRA Vietnam.

What is your assessment of Danang's current real estate market?

The realty market in Danang follows the downtrend of the whole country. Supply and demand are at very low levels, reflected in the limited number of offerings in the third quarter of 2022 and the overall absorption rate in each segment ranging from 50% to 60%.

Specifically, the land plot segment had 13 projects for sale, supplying the market nearly 1,000 units, down 17% compared to the second quarter. The apartment segment recorded three projects, offering 91 units, only one third of the previous quarter’s figure.

Meanwhile, there were seven townhouse/villa projects for sale, with about 374 units, down nearly 37% quarter-on-quarter.

Property prices in Danang have decreased in almost all segments. Have they hit the bottom, in your opinion?

It is difficult to say whether the market is at the bottom or not, especially when the current general picture is still full of difficulties and uncertainties due to the strengthening of credit control and soaring interest rates.

In my opinion, the market still poses certain risks, so buyers need to select projects carefully, prioritize medium- and long-term investment strategies and avoid the sentiment of “surfing” in the short term.

What advice would you give to real estate investors and businesses given the current difficulties?

For investors, with the current high lending interest rates (12-14% per year), which may continue to increase in the coming time, and the declining market liquidity, real estate investment will be ineffective when using financial leverages. Therefore, in the current period, investors with weak financial health should stand outside to observe the market.

However, for those with idle capital, this is an opportunity to "hunt" products with deep discounts in beautiful locations that were previously difficult to access due to high prices. In fact, the market has seen “hunts” by investors with strong financial potential for properties with prime locations near the city center.

In addition, investors should closely monitor market developments, screen products, learn about the project’s legal status, and the investor's capacity. They also need to consider using financial leverages at an appropriate ratio.

For businesses, it is necessary to optimize operation costs and streamline the organizational apparatus. In particular, real estate developers which have issued bonds and are running out of money need to proactively make payment plans for maturing bonds.

Property firms should diversify capital mobilization channels like foreign investment funds and bond issuance; while improving product quality in terms of utility, design, handover quality, and operation management.

In addition, they also need to apply technology to management and sales to cut input costs. In particular, they should focus on developing strategic projects with a completed legal process, and avoid scattered investment and deployment of many projects at the same time as before.

What do you think about the Danang real estate market in the near future?

In my opinion, in the short term until the end of 2023, the market will hardly see positive changes because of the above-mentioned difficulties. However, in the long term, I still believe in the sustainable growth potential of Danang city as well as its real estate market.

This is reinforced by bright prospects like the goal of building Danang into one of the major socio-economic centers of the country and Southeast Asia by 2030. In particular, Danang is an attractive tourist destination, so in the long term, recovery of the tourism industry will lead to the recovery of the real estate market, which holds a lot of potential.

As the economic locomotive of the central region, Danang has received much infrastructure investment. It also takes the lead in the country in FDI attraction. The city’s gross regional domestic product in the first nine months of 2022 expanded 16.76%, nearly double the country’s growth.

Therefore, despite the current difficulties and inadequacies, the real estate market in Danang still has room for recovery and development in the next three to five years.

Comments (0)
  • Read More
Robots work hard, don’t argue: Viettel exec counsels effective use of technology

Robots work hard, don’t argue: Viettel exec counsels effective use of technology

Small businesses in logistics should look to use existing tools, software and technology solutions effectively, says Dinh Thanh Son, deputy CEO of Viettel Post.

Companies - Sun, November 3, 2024 | 4:30 pm GMT+7

Vietnamese multi-sector group Masan uses AI to forecast product sales: executive

Vietnamese multi-sector group Masan uses AI to forecast product sales: executive

AI has helped Masan Group forecast the number of items likely to be sold during peak season based on available data and to optimize product placement, says An Luong, head of the corporation’s artificial intelligence & data science division.

Companies - Sun, November 3, 2024 | 2:51 pm GMT+7

Vietnam needs large, specialized logistics centers to compete better: official

Vietnam needs large, specialized logistics centers to compete better: official

Vietnam needs large-scale, specialized logistics centers that will enable greater competitiveness of local economies and enterprises, says Tran Thanh Hai, deputy head of the Ministry of Industry and Trade's agency of foreign trade.

Economy - Sun, November 3, 2024 | 11:00 am GMT+7

Vietnam manufacturing sector sees 35% increase in Q3 job orders: Adecco

Vietnam manufacturing sector sees 35% increase in Q3 job orders: Adecco

Vietnam’s manufacturing and sourcing sectors saw a substantial 35% year-on-year increase and a 52% quarter-on-quarter increase in Q3/2024 job orders, global workforce solutions provider Adecco said in a reseach report released Thursday.

Economy - Sun, November 3, 2024 | 9:00 am GMT+7

Construction majors to continue capitalizing on public investment projects

Construction majors to continue capitalizing on public investment projects

Vietnamese construction giants are expected to continue capitalizing on public investment projects for the remainder of this year after delivering strong performances in the third quarter, analysts say.

Companies - Sun, November 3, 2024 | 8:00 am GMT+7

Former Government Office chairman receives $7,900 bribe from property project

Former Government Office chairman receives $7,900 bribe from property project

Mai Tien Dung, former Minister-Government Office Chairman, received a bribe worth VND200 million ($7,900) from Nguyen Cao Tri, owner of the Dai Ninh eco-resort and urban area project in Lam Dong province.

Society - Sat, November 2, 2024 | 9:13 pm GMT+7

Thai food giant CP enters public-private partnership to promote food system transformation

Thai food giant CP enters public-private partnership to promote food system transformation

Thai-invested C.P. Vietnam Livestock JSC and the Partnership for Sustainable Agriculture Vietnam (PSAV) signed a memorandum of understanding Friday on working together to advance sustainable agriculture in the country.

Companies - Sat, November 2, 2024 | 7:16 pm GMT+7

Central Vietnam province Quang Ngai to begin work on new VSIP industrial park next year

Central Vietnam province Quang Ngai to begin work on new VSIP industrial park next year

Vietnam’s central province of Quang Ngai will work with the investor to have construction of VSIP II Quang Ngai, a facility based on the Vietnam-Singapore Industrial Park (VSIP) model, begin in August 2025.

Industrial real estate - Sat, November 2, 2024 | 3:47 pm GMT+7

Vietnam likely to grow 6.5% in 2024-2025: VinaCapital

Vietnam likely to grow 6.5% in 2024-2025: VinaCapital

VinaCapital, among the biggest foreign-run asset managers in Vietnam, has forecast the country’s economy to achieve 6.5% growth in both 2024 and 2025, with the composition of the expansion to change to more domestically driven factors next year.

Economy - Sat, November 2, 2024 | 2:00 pm GMT+7

Major Vietnamese developer Novaland appoints new CEO

Major Vietnamese developer Novaland appoints new CEO

Duong Van Bac, who joined Novaland as chief financial officer in August 2023, has been appointed general director, starting Friday.

Companies - Sat, November 2, 2024 | 10:24 am GMT+7

Vietnamese conglomerate Bamboo Capital posts 36-fold profit growth in Q3

Vietnamese conglomerate Bamboo Capital posts 36-fold profit growth in Q3

Ho Chi Minh City-based Bamboo Capital Group recorded an after-tax profit of VND331.2 billion ($13.1 million) in the third quarter of 2024, an astounding 36-fold expansion year-on-year.

Southeast Asia - Sat, November 2, 2024 | 9:41 am GMT+7

ThaiBev to bag $54 mln from Sabeco’s upcoming dividend payout

ThaiBev to bag $54 mln from Sabeco’s upcoming dividend payout

Vietnam Beverage, wholly owned by Thai Beverage (ThaiBev) will rake in VND1,374 billion ($54.26 million) worth of dividend from Ho Chi Minh City-based top brewer Sabeco.

Companies - Sat, November 2, 2024 | 9:13 am GMT+7

Steel heavyweight Hoa Phat pours over $2 bln into central Vietnam complex

Steel heavyweight Hoa Phat pours over $2 bln into central Vietnam complex

Leading Vietnamese steelmaker Hoa Phat had invested more than VND52.5 trillion ($2.08 billion) in its Dung Quat Iron and Steel Integrated Complex (Dung Quat 2) in the central province of Quang Ngai as of Q3/2024.

Industries - Sat, November 2, 2024 | 8:00 am GMT+7

Vietnam becomes Australia’s fastest-growing inbound market

Vietnam becomes Australia’s fastest-growing inbound market

The number of Vietnamese tourists to Australia has grown significantly after the Covid-19 pandemic, with nearly 178,000 reported in the 12 months to August 2024, according to a Friday press release by the Australian Minister for Trade and Tourism’s Office.

Southeast Asia - Fri, November 1, 2024 | 10:02 pm GMT+7

Study finds shift in Thai consumers’ spending patterns

Study finds shift in Thai consumers’ spending patterns

Consumers in Thailand are shifting their spending focus to experiences and investments, according to the latest ASEAN Consumer Sentiment Study (ACSS) by United Overseas Bank (UOB).

Southeast Asia - Fri, November 1, 2024 | 10:00 pm GMT+7

Energy security, digitalization key to Indonesia's economic growth

Energy security, digitalization key to Indonesia's economic growth

The Indonesian government is prioritizing long-term economic growth through energy security, digitalization, and natural resource industrialization, according to Deputy Minister of Finance Thomas Djiwandono.

Southeast Asia - Fri, November 1, 2024 | 9:58 pm GMT+7