Residential market sluggish in Da Nang

The residential housing market remains sluggish in Can Tho, Binh Duong and Da Nang, property service provider Savills Vietnam said in a report released earlier this week.

Transactions in the Can Tho primary market were very few. The absorption rate was 1 per cent, down 6 percentage points from the first quarter.

The average price in the second quarter was US$565/sq.m for apartments, $600 for villas/townhouses, and $280 for land plots.

This represented an increase of 13 per cent over the first quarter in the price of apartments, but 16 per cent fall in case of villas/townhouses and 5 per cent in case of land.

There were no new projects in the Can Tho residential market. There were a total of 35 projects in the primary and second markets, supplying more than 23,500 units.

Land plots continued to dominate with 75 per cent market share. They were concentrated in three main districts – Cai Rang, Ninh Kieu and Binh Thuy – with Cai Rang having the greatest stock due to the advantages of the Can Tho Bridge and Can Tho South Urban Zone.

Six projects with around 5,100 units were expected to enter the market in the near future, but most of them faced a cash crunch.

Developers met with difficulty in negotiating compensation payments due to unclear definition of market value for land. But with the progress of most projects being too slow, the city Department of Construction had begun an investigation to withdraw licences of ineffective projects.
In Binh Duong, primary market had an average absorption rate of 32 per cent, a 14 per cent decline.

The average price was $800 for apartments, $2,075 for villas/townhouses, and $159 for land. Villas/townhouses saw a price increase of 67 per cent while apartment rates rose by 4 per cent. The average price of land plots remained unchanged.

Binh Duong added 10 new projects with more than 1,800 units. There were a total of 22,700 units in 68 projects in both the primary and secondary markets.

Binh Duong was expected to see 16 new projects with 5,600 units in all segments.

Many infrastructure works were on the cards in future to improve access from other provinces – such as National Highway No 13 My Phuoc-Tan Van Highway, Ring Road 3 and Ring Road 4 – pushing up demand in the residential market.

In Da Nang, demand for apartments and villas chiefly came from buyers in Hanoi and HCM City, mostly for investment rather than use.
In future 17,900 apartments in 27 projects and 1,060 villas in 20 projects are expected to hit the market.

The central city has 720 villas in 13 projects. Its apartment segment has 2,400 units in 12 projects, including 1,270 primary units. Apartment sales topped 47 per cent at a primary asking price ranging from $700 to $3,160.

Villa sales reached 69 per cent at a primary asking price of $770 to $4,700.


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