In Q4/2015, there were no new villa or apartment projects in the Vietnamese city of Da Nang according to research from real estate firm Savills.
The Villa primary market had 11 projects providing 572 units (down 21 percent quarter-on-quarter, and accounting for 48 percent of total stock. Ngu Hanh Son district remained the top supplier, accounting for 69 percent of total stock.
The Apartment primary market also had 11 projects, providing 412 units (down 32 percent Q-o-Q), accounting for 13 percent of total stock. Hai Chau and Son Tra districts dominated primary supply with 96 percent market share.
Villa absorption to date increased by 14 percentage points Q-o-Q to 66 percent due to the impressive sales performance by Vinpearl Da Nang 2 (pictured). The apartment market had slow sales performance with absorption this quarter dropping 19 percentage points from 31 percent over the previous quarter. Most active projects have entered into the final phase of sales with gradually slowing sales velocity.
Reputable developers, attractive sales policies and proximity to the beach are key contributors to good villa sales this quarter. Project(s) with guaranteed minimum annual return also had better sales performance relative to others.
Ngu Hanh Son district tops future villa supply while Hai Chau district tops future apartment supply.
Following positive market sentiment, it is expected that projects along the coast will launch in 1H/2016.
