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Danang emerging as home for tourism properties

2009-12-10 (GMT + 7)

The property market in the central coast city of Danang might be less busy than in HCMC, but the tourism property segment there is burgeoning offering both hi-end and low-end products, said the market researcher Savills Vietnam.

Projects to build villas for sales are emerging quickly in the region, and in the next couple of years, there will be significant villa and resort developments along the Son Tra - Dien Ngoc coastal road from Danang to Hoi An, the company said.

Savills says villas are mainly developed in Ngu Hanh Son and Son Tra districts, and as of the third quarter of this year, there had been about 218 villas for sale from six projects and 630 apartments for sale from three projects.

Highlighted projects whose products have been launched onto the market include The Ocean Villas, Hyatt Regency Danang Resort & Spa, and Blooming Tower among others. This quarter will soon witness Furama project invested by Ariyana Company with 134 villas for sale.

There will be 13 projects along Danang City’s beach with 670 villas expected to enter the market in the next few years, plus 15 apartment projects providing some 7,600 apartments to the market until 2015, the market research company projected.
In another segment, the office market in the city has witnessed considerable changes in the last few years, with many office buildings springing up to meet the increasing demand of both local and international enterprises.

Savills reported that there were 19 office buildings with a total floor area of about 62,500 square meters launched onto the market in the last quarter of this year. Office rents are ranging from US$6 to US$15 per square meter per month, but a few other buildings such as Indochina Riverside Tower and Danang Software Park have rents higher than US$15 per square meter per month.

However, due to the impacts of the global economic downturn, the occupancy rate at office buildings has decreased quite a bit in the last quarter compared to the second quarter of this year, according to the research company.
Savills anticipates that some 143,000 square meters of office space will enter the city’s market in the next five years. Around two-thirds of the office space will be situated in the key districts of Hai Chau, Son Tra and Thanh Khe. In another sector research, the company shows that the retail market in the city is still in its infancy as shopping in traditional markets and small retail street-front shops remains the preference of the majority of residents.
However, there were some major retail properties supplying some 114,000 square meters to the market in the last quarter of this year. Retail space rents are widely ranging from US$18 to US$50 per square meter per month, according to Savills.
The company forecasts that the city’s retail sector will see 16 retail projects coming on stream over the next four years, mainly trade centers and supermarkets, with total floor space of some 260,000 square meters.


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