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Da Nang (VNS/VNA) – In the open period of 2022, the central city of Da Nang is recovering by focusing more on branded tourist real estate projects. Moreover, Da Nang continues to develop smart urban areas with the ambition to put the city into the map of a high-class living and resort urban area.

For the first half of 2022, the city received a total of 1.33 million tourist arrivals served by established accommodations, up by 26% year-on-year.

MICE guest numbers recorded in February and May jumped eight-fold compared to the previous year.

In the first half of 2022, there were two new properties, Radisson Hotel Da Nang (182 rooms) and Mikazuki Da Nang (294 rooms).

Da Nang’s four and five-star hotel market had 81 projects with 15,343 rooms. The number of 5-star and 4-star rooms accounted for 38% and 62%, respectively.

For the first six months of 2022, in Da Nang, the ADR (Average Daily Rate) averaged 70 USD per room per night, up 11% year on year and the occupancy rate was reported at 26.3%, up by 15%.

The city expects to welcome 10 new properties with 2,442 rooms, lifting the total supply to 91 properties with nearly 18,000 rooms for the rest of 2022.

By 2022, ADR is forecast to rise by 30% year on year standing at 79 USD/room/night, and occupancy would be reported at 53.2%, up by 43.5% year on year.

In 2024, the city’s four and five-star hotel market is projected to have 99 properties with over 21,000 rooms. The greater number of branded projects enhances the upscale hotel market performance. Following that, ADR is expected to increase at the Compound Annual Growth Rate (CAGR) in 2021 to first half of 2024 by 25% per year, possibly reaching 119 USD/room/night in 2024. Occupancy will rebound to a pre-pandemic level of 63%.

Vacation property market

In the first half of 2022, there was only one newly-launched condotel project: Felicia Da Nang (70 units launched in the first phase). Currently, the city has a total of 7,384 condotel units (from 16 projects) and 2,522 vacation villas (from 13 projects).

For the past three years, the Da Nang condotel market had few projects opened for sales. Hence, the primary price hovered at CAGR 2019-21 of 4% per year and currently stood at 2,431 USD per square metre. The accumulated sold rate was reported at nearly 85%.

The vacation villa segment recorded no new supply in the same review period. The primary price remained unchanged and averaged 2,724 USD per square metre.

For the first half of 2022, no newly-launched projects are recorded. Currently, Da Nang has a total of 7,378 condominium units from 20 projects.

Several projects were introduced in the period of 2020-2021, even during the pandemic. Market-wide primary price averaged 1,475 USD per square metre and grew at a CAGR from 2019-2021 of 8% per year.

Primary prices currently stood at 2,100 USD, 1,300 USD and 650 USD per square metre for high-end, mid-end and affordable segments. High-end products rose at the highest, with a CAGR in 2019-2021 of 6% per year, mainly thanks to two projects, The 6Nature and The Sang Residence sold at a relatively high price range compared to similar grading ones in the city.

Meanwhile, the primary price of the mid-end segment slightly went down as FPT Plaza 2 offered 700 units for sales at quite lower than the same grading peers.

In the upcoming time, the Da Nang condominium market is expected to thrive, with 10 new projects to be launched, providing an extra 5,600 units. 

Luxury apartments will take the lead, promoting the market-wide primary price growing at a CAGR in 2021-24 of 12% per year.

In the first six months of 2022, the city had Sunneva Island firstly launched in the second quarter, with 106 units, including villas and townhouses.

The remaining phase from Regal Pavillion contributed 34 shophouses to the whole supply. Currently, the city’s landed property market has 1,624 units (villas, townhouses, shophouses).

In the period of 2019 – 2021, there was no new supply of villas and townhouses; hence, market-wide primary prices kept nearly unchanged, reported at 3,300 USD and 3,450 USD per square metre of land.

Recent launches from Sunneva Island in the first half of this year pushed the price range to 3,780 USD for villas and 3,900 USD per square metre for townhouses. Regal Pavillion was first introduced last year and sold at over 6,500 USD per square metre, thus leading to a two-fold increase in market-wide primary price for the shophouse segment during 2019-2021./.

Source: vietnamplus.vn