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Land prices in Da Nang city increased 100% against the same period

Saturday - 14/07/2018 21:48
Although no transaction occurred in the second quarter, coastal land prices in Da Nang are still twice as high as the same period last year.
According to the Association of Real Estate Brokerage (Vietnam Real Estate Association), the land price of the front of the road of the coastal area along Vo Nguyen Giap road, Da Nang city in the second quarter was determined to sell about VND 300 million per square meter, doubling against the same period of 2017. However, in the second quarter, no transaction occurred. The main roads are about VND 200 million square meter and the other roads are from VND 100 million to VND 150 million depending on the location, but mostly for resale  transaction.

Urban Land Projects in some peripheral districts have average transaction prices of VND10 - 15 million per square meter, up over 30% against the same period of 2017.

"This is the right price in the condition that Da Nang has stepped up investment in perfecting its modern and synchronous urban infrastructure and economic growth at a high level." The report states.

Commercial apartments in the first 6 months with the supply of about 800 units, prices range from VND 32 to VND 80 million per m2. The absorption of these projects reached 80% in the first 6 months.

General assessment of the real estate market in the first few months of 2018, Brokers Association said that quiet. According to this unit, no housing development project has been launched for sale for 6 months, including land and apartments. There are many projects approved but not implemented due to legal problems, the government does not solve the phenomenon of scarcity of goods in the market.

the Association of Real Estate Brokerage also said that  the projects in the first quarter were sold fastly to the second quarter past due to lack of goods, brokers push virtual prices, appear bubbles. At the beginning of the legal tightening policy, causing the speculators to flee, making trading volume, buying and selling gradually.

However, according to the research unit, investors still expect the market should have new projects to prepare investment. Đà Nẵng has just approved the adjustment of planning and architectural design for a number of projects will create legal basis for new investors to deploy construction investment to remove existing "hanging" project for many years in the city center.

In the segment of real estate resort, as noted, the volume of transactions in Da Nang in the second quarter mainly concentrated in the condotel segment. No condotel supply or resort villas are offered new to the market. Trading volume of villas also leveled off, no transaction of second quarter. Only about 300 condotel units were traded during this time.

This segment also has many projects that are not legal enough or because the investors are not capable of executing, are lying and are gradually being re-sold by M & A deals to transfer to other investors which have better development capacity.

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