Investment wave returns, land prices in central Vietnam hub Danang hit new highs

Danang city’s real estate market is seeing a strong comeback from investors in both the north and south of Vietnam, with several areas setting new price benchmarks.

Coastal areas see surging prices

Over the past month, land in the coastal districts of Son Tra and Ngu Hanh Son has witnessed a surge in investment, driving prices sharply higher.

Tran Hoai, a buyer from Hanoi, recently purchased a home in An Hai ward, Son Tra district for more than VND13 billion ($510,000) and plans to relocate his family there permanently.

He said the decision came after surveying the market and recognizing the area’s tourism potential and well-developed transport infrastructure.

Similarly, investor Do Xuan Hop from the south placed a deposit on a 195-square-meter lot on a 7.5-meter wide road in An Hai Ward for VND55 billion ($2.15 million). He said he has tracked the Danang market since early this year and believes coastal land is entering a strong growth cycle, especially in tourism-heavy areas.

Meanwhile, Hanoi-based businessman Ngo Van Phu took advantage of a work trip to purchase a coastal plot for a hotel project. He chose the Son Tra and An Thuong neighborhoods - areas he sees as dynamic and fast-growing - over newer developments like Dien Ban.

According to Nguyen Anh Dung, director of Truong Phat Real Estate, the coastal land market in Danang has seen both transaction volume and selling prices jump significantly in the past three weeks.

In central locations such as An Thuong, Pham Van Dong, and Vo Van Kiet, prices are up 60% from the start of the year. Prime roads are fetching VND130 million ($4,957) per square meter or more, depending on locations. In Son Thuy, prices have risen 20-25%, now trading at between VND60 million ($2,287) and 75 million per sqm.

“Compared to other coastal cities in Vietnam, Danang’s coastal land is still relatively affordable. That’s attracting capital from investors in Hanoi, HCMC, and overseas Vietnamese looking for fresh opportunities - especially as prices in many major markets have already peaked,” said Dung.

Dung added that Hanoi investors now make up a large share of buyers, as their home market has risen too quickly, squeezing profit margins. Capital from the stock market is also flowing into real estate as investors take profits and restructure assets.

The market’s momentum is spreading citywide. Prices in areas such as the Golden Hills eco-urban area and the Nguyen Tat Thanh coastal area are also climbing, fueled by major announcements like the establishment of a Free Trade Zone and the start of the Lang Van project, a resort-urban area and tourism complex developed by Vinhomes. Land price there has increased 20-30% since the beginning of the year.

Experts say the merger of Quang Nam and Danang in July 2025 has expanded population size, land availability, and the urban development corridor - laying the groundwork for satellite urban areas and boosting housing demand.

Infrastructure upgrades, including Lien Chieu Port, airport expansion, and new ring roads, are further enhancing interregional connectivity and property values. The involvement of major developers such as Sun Group and Vingroup is also elevating project quality, investor confidence, and the city’s overall image.

Is this a “land fever”?

Asked whether Danang is experiencing a “land fever,” Duong Thuy Dung, executive director of CBRE Vietnam, said the term covers both real and speculative price increases.

Real price increases, she explained, occur in areas with strong fundamentals: upgraded infrastructure, well-executed master planning, and the presence of reputable developers. “When these conditions exist, higher prices are reasonable, and buyers are willing to pay because they see genuine value,” she said.

Speculative, or “virtual,” price increases, on the other hand, happen in areas lacking clear planning or infrastructure, where prices are pushed up purely by hype or herd mentality. “People raise prices just because others are doing it - but in reality, there’s nothing to support those values,” she added.

While some speculative activity remains in Danang, she said it is far less intense than during and after the Covid-19 pandemic. “Back then, the fever lasted a long time, but few actual products hit the market. In the past two years, however, many projects have been launched and are showing strong sales potential,” Dung added.

For individual investors - especially those coming from Hanoi or HCMC - she advised careful evaluation before committing capital.

Dung added that the problem of housing access for people in Danang, or people in big cities in Vietnam, is one of the most difficult problems, and the accessibility is extremely low. "That's simply because all the products currently on the Danang market have prices that exceed the budget of ordinary people."