Danang real estate market sees stable growth

While the hotel sector benefited from the APEC Summit, holiday home investors are waiting for the new year to come before introducing new projects.

Statistics from Danang Department of Tourism show that the city welcomed 6.6 million visitors last year, including 35% of which were international tourists. The number of domestic and international tourists increased by 12% and 39% respectively.

The city has one new five-star, a four-star and three three-star hotels by the fourth quarter of last year. The number of three to five-star hotels increased by 37% compared to previous year.

"The market is becoming more competitive. Only those that know how to differentiate themselves or with amazing views can attract visitors," said director of the Commercial Real Estate Services Vietnam Duong Thuy Dung.

Thanks to the APEC 2017 Summit, the hotel sector saw remarkable results and occupancy for four and five-star hotels reached 57.3%, an increase of 5.5% on previous year.

Currently, Danang has 7,675 holiday homes but there was no holiday home project offered in the final quarter.

"Several investors decided to wait until 2018 and 2019 to offer new holiday homes. So in the next two years, Danang will have 9,000 holiday homes," Dung said.

90.3% of residencies for luxury projects and 94.2% for affordable projects were bought. No new projects mean the market has had time to absorb the leftover stock.

Danang also had three new office building projects last year. Renting fees for grade A buildings were USD26.70 per square metre and USD12 for grade B buildings. Demand was also high, however, most of demand was for 100-200 square metre rooms. 46% of them are new customers wanting to rent offices for medical, banking and insurance services.

Rent for grade A buildings will rise while the fees for grade B buildings are expected to remain stable.