Danang property is benefitting from increased tourist numbers and its livability status.
We recently discussed how Danang is marking its territory as a property hotspot. The country’s third largest city has been thrust into the spotlight for a combination of reasons. Businesses are flourishing here which is spurred by the fact that the city has been dubbed as great base for start-ups. The city entices people due to its livable qualities but it also has a host of tourist attractions too.
Before we look further into how property is fairing, lets take a quick look at the overview of country as whole to help paint a picture of the mechanics behind the market. GDP has increased by 8.1 percent for the first six months of 2017 if compared to the previous year. Foreign direct investment continues to climb. 2.400 new business were created. Retail sales grew by just over 17 percent and tourism continues to expand as international visitors have reached 1.2 million. An increase of nearly three-quarters.
Thriving tourism
Whilst increased rents have been noted across the office sector, what is most notable in Savills’ most recent research is the performance of hotels. In a response to the country’s growing tourism and Danang’s appeal as a destination, occupancy rates have been recorded at just over 70 percent. A direct result of a hike in domestic and international visitors.
For the first six months of this year, Danang welcomed 3.2 million visitors. An increase of 33 percent year-on-year and a staggering 72 percent increase in international visitors for the same period. This is an increase from the previous year but the sector that is performing the best are five-star hotels. Proving that there is a real thirst for luxury and that plenty of tourists are well heeled.
As well as the apartment and condotel market having a stable performance, second-home villas are enjoying high absorption too. The majority of the supply of which has been in Ngu Hanh Son district with Son Tra district having just a fraction in comparison. Savills have recorded absorption rates at just over 80 percent with seven projects fully sold. The real estate firm note that investors seek a few factors when securing property. These include developer reputation, guaranteed returns and distance to the beach suggesting that many purchases are for holiday homes.
If you are considering investing in this promising market, check out Dot Property’s extensive listings of properties in Danang found online here.