Commercial, residential segments increase in Da Nang
Commercial, residential segments increase in Da Nang
Rent and occupancy increased quarter-on-quarter (QoQ), real estate consultancy Savills Viet Nam said about the city's property market.
It said in the third quarter of 2015, the total retail stock was 167,000sq.m, stable quarter-on-quarter (QoQ). The average rent increased seven per cent QoQ due to higher rents in the newly opened Vincom Ngo Quyen and Indochina Riverside Tower. Occupancy increased in Hoang Anh Gia Lai Lake View and Nguyen Kim Da Nang Supermarket. The average occupancy increased by one percentage point (ppt) QoQ.
The total retail sales for the first nine months of 2015 were worth about VND55 trillion (US$2.45 billion), up 16.8 per cent year on year (YOY). Hilton Da Nang is expected to enter the market in 2016 and provide 3,500sq.m of retail space.
In the office segment, the central city's total office stock was approximately 85,000sq.m, decreasing just two per cent (QoQ) as Trung KyPlaza closed for renovation.
The average rent was up two per cent QoQ. The average Grade A rent increased seven per cent QoQ, Grade B rose four per cent QoQ, while Grade C saw a minor two per cent decrease QoQ.
The average occupancy was 87 per cent, up five ppts QoQ. Grade A's occupancy was stable QoQ, whilst Grade B and C increased one ppt and nine ppts, respectively, QoQ.
The total leased area was approximately 74,300sq.m, up four per cent QoQ. According to Da Nang people's committee, 2,393 new businesses were set up in the first nine months of 2015, up 38 per cent YoY, with a registered capital of more than VND8.65 trillion ($384.3 million).
The hotel sector stock increased by seven per cent QoQ, due to the official ranking bestowed on three four-star hotels and one three-star hotel.
The average occupancy rose three ppts QoQ to touch 77 per cent. The average room rate (ARR) increased eight per cent YoY; whilst the revenue per available room (RevPAR) grew 13 per cent YoY; and the average revenue rate (ARR) and RevPAR increased across all grades QoQ and YoY.
According to the National Administration of Tourism, Da Nang saw 1.5 million arrivals in the third quarter of 2015, up 24 per cent YoY.
According to Savills, sales rose in the city's residential segment. In the third quarter of 2015, Vinpearl Da Nang launched the second phase with 150 dwellings. Villa stock increased to touch 1,200 units, which came from 17 projects following an additional 146 units from Euro Village.
Primary stock rose by 50 per cent QoQ to touch 725 dwellings from 11 projects; while secondary stock increased by 50 units to reach 474 from 16 projects. There were no new launches in the apartment market in the quarter. Primary stock was down just 16 per cent QoQ to reach 600 units; while secondary stock rose five per cent to touch 2,519 units.
Factors such as developer and management reputation and proximity to beach and city centre were key contributors to good sales this quarter. People from Ha Noi, overseas Vietnamese and foreigners remained the key buyers. In addition, attractive sales policies such as guaranteed minimum annual per cent return from rental pool programme helped to drive sales forward.
The downtown Hai Chau District remains the top future apartment supplier with a 75 per cent market share. Most future villa and apartment projects are in planning or pending and do not have clear construction schedules. However, with positive market sentiment of late, it was expected that various projects would be launched by end of 2015 and in the first quarter of 2016.
