Da Nang real estate: Houses in the city take the throne

The real estate market in Danang recently has experienced many volatile and turbulent periods.


Latest, the land plot segment of the project continuously suffers from the consequences of unusual hot status. Despite the volatile market, the segment of houses in the street still grows steadily and stably.


Houses in the city grew steadily


According to Mr. Tran Thanh Hai (living in Son Tra District, Da Nang), he and his wife are both employees and the income is not high but quite stable. At the end of 2017, when he saved the amount of VND 200 million, Mr. Hai discussed with his wife to decide to borrow more investment bank to buy a house in the city for rent.


With that goal, when finding a 4-level house with an area of 80 m2 in masterpiece on Tran Cao Van Street (Thanh Khe District), Mr. Hai and his wife decided to borrow a bank to buy it for 800 million VND.


Da Nang needs to focus on stabilizing, balancing the market and offering solutions to optimize the use of available land. Photo: Quang Hai


After that, he and his wife rented for 3 million/month, with this income has less interest bank. At the end of 2018, when the housing price went up, he sold the price of 1.9 billion VND, except the profit was quite good. Mr. Hai added, his house has been sold, the owner is selling for 2.5 billion dong.


Similarly, Mr. Tran Anh Duong (Hai Chau District, Da Nang) also felt that he made the right decision when investing in a house in the street. He said that two years ago, he bought a 3-storey house with an area of 65 m2, located in a 3 m lane on Nguyen Chi Thanh street for 3.5 billion VND. Currently, his house has been valued at about 6 billion.


“If I spent VND 3.5 billion two years ago to invest in land acquisition, it would not be profitable to buy a 65 m2 house in an alley in the city center. Moreover, land is very difficult to sell now, while houses built in the street are very easy to sell", Mr. Duong shared.


Being the owner of a fairly large enterprise in Da Nang, Ms. Tran Thuy A. (in Thanh Khe district), whenever she got a profit, she decided to "hunt" builders in the city center to buy. Most recently, Mrs. A. bought a two-storey house in the center of Hai Chau district for VND 5.5 billion.


After repairing another VND 500 million, only two months later, Ms. A. sold this house for VND 6.5 billion. Ms. A. said she also invested capital to buy land plots in some projects in Da Nang but really felt more interested in the housing segment in the city center. Because the house in the street ensures steady and stable growth, moreover, there are adequate papers so peace of mind.


No worries about losses


While the houses in the city grew steadily and stably, the project land market in Da Nang was facing many difficulties, many areas fell and it was very difficult to transact. According to Mr. Truong Sy Binh - General Director of Phuc Hoang Ngoc Company, land in some areas has been pushed up prices too much compared to reality, such as the urban projects in the South and the West of Da Nang City. Danang. Therefore, the land market is highly volatile.


“From 2017 to now, the land market in Da Nang has been extremely volatile. The price of each land lot in urban projects in the southern city of Da Nang in 2017 fluctuated around 1 billion dong, up to nearly 2 billion dong in 2018. But to the "fever" after the Lunar New Year 2019, the price of the project ground here spiked, with a lot up to nearly 4 billion. And now, the land of the project site has dropped deeply, nearly a billion dong per lot”, Mr. Truong Sy Binh said.


According to Mr. Binh, in the past, the number of investors in the segment of construction houses in the street was quite large but the later time was less due to the fluctuations of the Da Nang real estate market. Specifically, in recent years, Da Nang has had many "hot" development time of urban projects, so the trend has strongly shifted to the land plot segment.


While the investment forms of the developed society do not give much priority to the land plot segment, but rather to adjacent houses and townhouses. Therefore, this is also a problem that needs to be reconsidered in the planning process of Danang City.


Talking about the investment, General Director of Phuc Hoang Ngoc Company said that, for Da Nang real estate market today, investing in the housing segment in the city is the safest direction, without worrying about losses. Currently, the price of land (with houses) in the alleys in the central roads of Hai Chau district such as Hoang Dieu, Phan Chau Trinh... fluctuates about 100 million VND/m2.


An Thuong area (My An ward, Ngu Hanh Son district) is considered to be the most attractive investment site of Da Nang today, the land here costs about 110 million VND/m2 or more. For residential land, the price is much higher. Meanwhile, alleys and alleys in some roads of districts Thanh Khe, Cam Le and Lien Chieu, prices range from 30 million VND/m2.


"In the past few years, Da Nang has been a constant focus of land fevers. Many investors are risking their lives in the hope of being able to surf in order to make a profit. However, when land fevers are over, property prices plummet, many investors have been stranded, and virtual land fevers with semi-grounding activities have left many market consequences. Because the Danang government is having policies to "lower prices" to combat the virtual fever of the market.", Mr. Truong Sy Binh - General Director of Phuc Hoang Ngoc Company


According to Urban Economics