After a period of strong price increases, the selling price of luxury apartments is slowing down. Meanwhile, in Da Nang, selling prices and interest are increasing rapidly.
At the event "Vietnam Real Estate Market Overview 2024 and Da Nang Highlights" organized by PropertyGuru Vietnam on the morning of November 13, Mr. Nguyen Quoc Anh - Deputy General Director of PropertyGuru Vietnam - said that in the apartment segment, high-end apartments with an average price of 55-80 million VND/m2 and luxury apartments with an average price of over 90 million VND/m2 are accounting for a larger proportion of the supply in major cities.
In Hanoi, in the third quarter of 2024, the proportion of luxury apartment listings increased sharply to 22%. In Ho Chi Minh City, luxury apartments maintained a proportion of listings of 20-23% this year, a slight increase compared to previous years.
In terms of interest, if the Hanoi market is almost flat in the third quarter of 2024 compared to the first quarter of 2023 and the Ho Chi Minh City market has decreased relatively sharply, the Da Nang market has witnessed strong growth in the same period. "If the Hanoi market is almost flat in the third quarter of 2024 compared to the first quarter of 2023 and the Ho Chi Minh City market has decreased relatively sharply, the Da Nang market has witnessed strong growth in the same period. The main reason for the growth in Da Nang is that the proportion of luxury apartment supply, with selling prices from 80 million VND/m2 or more, has increased sharply, from 38% in the first quarter of 2024 to 62% in the third quarter of 2024" - Mr. Quoc Anh shared.
In terms of selling prices, the market in Hanoi and Ho Chi Minh City tends to be flat, while luxury apartments in Da Nang, both in the inner city and in resorts, are showing good growth in prices.
Notably, for the condotel apartment segment (hotel apartments), the selling price of condotels in Da Nang in the first 10 months of 2024 increased by 22% compared to the same period in 2023.
According to Mr. Nguyen Quoc Anh, the potential of condotels in the future depends largely on the tourism advantages of each market. Localities with tourism potential, well-invested, developed infrastructure, and positive policies will be the destination of investors interested in real estate products that generate cash flow from accommodation services for tourists.
Meanwhile, the trend of buying for short-term trading has decreased sharply, instead, the purpose of renting has increased. Mr. Ha Nghiem, Director of Da Nang Branch of PropertyGuru Vietnam, commented that the trend of buying apartments for short-term trading in Da Nang has decreased compared to the period of 2021-2022 compared to the purpose of buying for living and renting. The expected profit of Da Nang apartments and condotels comes from exploiting high rental prices with the characteristics of tourism.
In Da Nang, apartments and tourist apartments are the two leading types of market with new supply sources that are different in price and positioning. Future tourism growth will be the basis for investors' expected profits in this segment.
