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Da Nang's property market is experiencing rapid growth with beachfront apartments averaging $2,500-$3,550 per square meter as of September 2025. The city offers Vietnam's highest rental yields and attracts significant foreign investment driven by infrastructure development and tourism growth.
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Da Nang's property market shows strong fundamentals with rental yields outperforming Hanoi and Ho Chi Minh City, extensive infrastructure investment of $6.25 billion, and projected annual price growth of 3-7% for apartments.
Foreign investment flows continue with 151.2 million USD in new projects, while major developments like The Legend City and Thuan Phuoc Urban Area will add thousands of units over the next 24 months.
| Property Type | Current Price (USD/sqm) | Rental Yield |
|---|---|---|
| Beachfront Apartments | $2,500-$3,550 | 4.58% (center), 5.73% (outside) |
| Luxury Central Apartments | Up to $6,000 | 4.58% |
| Villas | $3,780 | 5.73% |
| Townhouses | $3,900 | 5.73% |
| Commercial Properties | $6,500+ | ~$70/sqm/lease cycle |
| 5-Year Price Growth | 25-80% increase | Projected 3-7% annually |
| Infrastructure Investment | $6.25 billion USD | Transit-adjacent premiums |
What are the current average prices per square meter for apartments, villas, and commercial properties in Da Nang?
Da Nang property prices vary significantly by location and property type as of September 2025.
Beachfront apartments currently average $2,500-$3,550 USD per square meter in prime locations. Luxury central district units command up to $6,000 per square meter for premium developments with ocean views and high-end amenities.
Villa and townhouse prices reflect the city's growing appeal to affluent buyers. Recent villa projects are priced at $3,780 USD per square meter, while townhouses average $3,900 USD per square meter. The average villa unit costs around $290,000, making Da Nang more affordable than comparable coastal cities in the region.
Commercial properties command premium prices, with top shophouse listings exceeding $6,500 USD per square meter. Average commercial rental rates hover around $70 per square meter per lease cycle, reflecting strong demand from businesses capitalizing on Da Nang's tourism and economic growth.
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How have property prices changed over the past 5 years, and what growth is projected for the next 3 years?
Da Nang has experienced remarkable property price appreciation over the past five years, significantly outpacing national averages.
Apartment prices increased 25-80% depending on location between 2020-2025, rising from $1,960 per square meter in 2023 to the current $2,500-$3,550 range. Vietnam's overall real estate market grew 59% over this five-year period, with Da Nang leading coastal city performance.
The next three years show continued upward trajectory driven by infrastructure investment and tourism recovery. Forecasted annual price growth of 3-7% for standard apartments reflects sustainable market fundamentals rather than speculative bubbles.
Luxury segments project stronger performance, with premium units expected to achieve 12% annual compound growth rates. Land values are experiencing double-digit growth driven by major infrastructure projects including the Lien Chieu Port expansion and new expressway connections.
These projections assume continued government support for foreign investment and completion of major infrastructure projects currently under development.
What are the average rental yields, and how do they compare with Hanoi and Ho Chi Minh City?
Da Nang delivers Vietnam's highest rental yields, making it exceptionally attractive for rental property investors.
| City | Center Yield | Outside Center Yield |
|---|---|---|
| Da Nang | 4.58% | 5.73% |
| Hanoi | 3.09% | 3.96% |
| Ho Chi Minh City | 3.01% | 3.52% |
| National Average | 3.5% | 4.2% |
| Commercial Properties | 6-8% | 7-9% |
| Short-term Rentals | 8-12% | 10-15% |
| Luxury Condos | 4.2% | 5.1% |
How many new housing units and commercial projects will be completed in the next 12-24 months?
Da Nang's development pipeline shows robust construction activity with substantial new supply coming online.
Ten new apartment projects totaling 5,600 residential units are planned for completion over the next 24 months. These developments concentrate in the rapidly growing Cam Le and Lien Chieu districts, where land values remain more accessible than beachfront areas.
Major commercial projects include The Legend City, featuring 2 towers with 446 apartments and 8 shophouses, scheduled for completion by Q2 2027. The massive Thuan Phuoc Urban Area mixed-use development is currently underway, representing one of the largest urban projects in central Vietnam.
Japanese investors are particularly active, beginning construction on multiple branded residence and resort projects that will add premium inventory to the market. These projects target international buyers and high-end domestic purchasers seeking luxury amenities and management services.
Construction timelines face potential delays due to permit processing and material costs, but the overall pipeline remains strong with adequate funding and government support.
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What are the current occupancy rates for apartments, hotels, and office buildings?
Da Nang's occupancy rates reflect a market in transition, with residential performing strongly while hospitality faces oversupply challenges.
Most apartment districts report occupancy rates of 70-85%, indicating healthy demand for residential rentals. New developments typically achieve 60-75% occupancy within six months of completion, particularly in prime locations near the beach and city center.
Hotel occupancy presents a more complex picture, with 4-5 star properties achieving around 60% occupancy rates. Budget and mid-tier hotels struggle with oversupply issues, particularly affecting older properties that haven't upgraded amenities or management systems.
Office and commercial spaces maintain approximately 70% occupancy rates across central Vietnam, though slight year-on-year declines reflect businesses' cautious expansion plans. Retail spaces in prime locations achieve higher occupancy due to tourism-driven demand.
The hospitality oversupply situation has prompted government policies to restrict new hotel development while encouraging conversion to residential or mixed-use projects.
How much foreign direct investment is flowing into Da Nang's real estate sector annually?
Foreign direct investment in Da Nang real estate demonstrates strong international confidence in the market's long-term prospects.
Da Nang received $151.2 million USD in new real estate projects during 2023, representing a significant portion of Vietnam's total $38.23 billion USD FDI for 2024. This investment targets high-value segments including hotels, branded residences, and resort developments.
Major source countries include Europe, Korea, and Singapore, with particularly active Japanese developers focusing on beach resorts, urban projects, and high-tech facilities. Korean investment concentrates on residential towers and mixed-use developments appealing to both domestic and international buyers.
FDI projects typically feature higher construction standards, professional property management, and international marketing, commanding premium prices and achieving faster sales velocity. These developments often incorporate hospitality-style amenities and services targeting affluent buyers.
The investment trend reflects Da Nang's strategic position as central Vietnam's primary economic hub, benefiting from government incentives for foreign investors and streamlined approval processes for qualifying projects.
What percentage of property buyers are domestic versus foreign investors?
Da Nang's buyer demographics show increasing foreign participation while domestic investors maintain market dominance.
Foreign buyers can legally own up to 30% of units in condominium projects and 10% of units in villa/townhouse developments under current regulations. This legal framework creates scarcity value for foreign-accessible inventory, often commanding price premiums.
The ratio of foreign buyers has shifted upward since 2022, with international purchasers from China, Korea, Singapore, and Japan increasing their market share. This trend is most pronounced in branded developments and high-end projects featuring international management and amenities.
Domestic investors still dominate overall transactions, but the gap narrows significantly in luxury and high-profile developments where foreign buyers represent 20-40% of purchasers. Cash-rich Vietnamese buyers from Ho Chi Minh City and Hanoi represent a significant portion of domestic investment.
Foreign buyer activity concentrates in beachfront condominiums, resort residences, and projects offering rental management services, reflecting investment-focused rather than owner-occupancy motivations.
How are local mortgage interest rates trending, and what percentage of buyers use financing?
Da Nang mortgage markets reflect Vietnam's broader financial landscape, with rates and accessibility varying by buyer profile.
Current mortgage rates in Da Nang average around 10% annually for 20-year fixed terms, slightly higher than Ho Chi Minh City's 9.5% rates. These rates apply primarily to Vietnamese citizens with established credit histories and steady employment documentation.
Cash transactions remain the dominant payment method, with mortgages used for only 20-30% of high-value purchases. Foreign buyers very rarely access financing, relying almost exclusively on cash payments or overseas financing arrangements.
Interest rates have remained relatively stable over the past year, with modest upticks as banks introduce new loan products targeting the growing middle class. Banks are becoming more active in real estate lending, though underwriting standards remain conservative.
The preference for cash purchases reflects cultural factors, limited mortgage product availability, and the desire to avoid long-term debt obligations in a developing financial market.
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How many visitors are projected to visit Da Nang, and how does this impact rental demand?
Da Nang's tourism recovery is driving strong rental property demand, particularly in the short-term rental segment.
Da Nang Airport is expected to handle 13.4 million passengers in 2024, including 6.2 million international arrivals. The city anticipates 8.7 million hotel visitors in 2024, representing substantial recovery from pandemic lows and approaching pre-2020 levels.
This tourism surge directly impacts rental property demand through multiple channels. Short-term rental properties achieve yields of 8-15% annually, significantly higher than traditional long-term rentals. Condotel and apart-hotel concepts benefit from both tourist demand and investor interest.
Rising tourist numbers also boost demand for long-term rentals from hospitality workers, tour operators, and service businesses supporting the tourism industry. This creates stable rental demand across different property segments and price points.
The government's target of positioning Da Nang as a premium regional destination supports continued tourism growth, though infrastructure capacity and environmental concerns may constrain visitor number increases in certain areas.
What are the city's infrastructure development plans and allocated investment amounts?
Da Nang's infrastructure investment represents one of Vietnam's most ambitious urban development programs, directly impacting property values and market dynamics.
1. **Lien Chieu Port expansion** - Major deep-water port development2. **Metro system extensions** - Connecting suburbs to city center 3. **Hoa Lien-Tuy Loan Expressway** - Improving regional connectivity4. **Da Nang-Kon Tum Expressway** - Opening highland access5. **Han River subdivision projects** - Waterfront development and flood control6. **Airport terminal upgrades** - Expanding international capacity7. **Smart city initiatives** - Digital infrastructure and servicesThe total infrastructure investment exceeds VND 150 trillion (approximately $6.25 billion USD), representing massive government commitment to Da Nang's development as central Vietnam's primary hub. These projects create significant value premiums for properties near transit connections and central districts.
Completion timelines vary, with airport upgrades and expressway segments finishing by 2026-2027, while metro construction extends through 2030. Property investors benefit from infrastructure-driven value appreciation even before project completion.
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What is the average time properties stay on the market before selling?
Da Nang property sales velocity reflects strong market demand, particularly in desirable locations and price segments.
Properties in prime districts typically sell faster than Vietnam's national average, with new units in well-located developments moving within 4-8 weeks of listing. This rapid absorption indicates healthy buyer demand and realistic pricing by developers and sellers.
Vietnam's national average for apartment sale completion typically requires 8-12 weeks from initial listing to final transaction. Da Nang's superior performance reflects its growing reputation among domestic and international buyers.
Sales velocity varies significantly by property type and location. Beachfront condominiums and branded residences often sell during pre-sales phases, while properties in oversupplied suburban areas may require 3-6 months for completion.
The faster sales pace benefits both buyers and sellers through reduced carrying costs, lower marketing expenses, and more predictable transaction timelines compared to slower-moving markets.
What government policies and regulations currently influence property transactions in Da Nang?
Da Nang operates under Vietnam's national property laws while implementing specific local policies affecting real estate transactions.
Foreign ownership remains restricted to leasehold arrangements of 50 years (renewable), limited to commercial and condominium projects with no direct land ownership rights. These restrictions create scarcity value for foreign-accessible inventory while protecting domestic land ownership.
Current transaction costs include 10% VAT, 0.5% registration fees, and 2% maintenance fees, making total acquisition costs approximately 12.5% above purchase prices. These fees apply to both domestic and foreign buyers without discrimination.
Upcoming policy changes favor increased foreign participation through easier project licensing and standardized appraisal processes. The government is considering extending leasehold terms and relaxing ownership quotas to attract more international investment.
Stricter oversight on hotel development addresses oversupply concerns while encouraging conversion of underperforming hospitality properties to residential or mixed-use projects. These policies support market balance and sustainable development.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Da Nang's property market demonstrates exceptional growth potential with the highest rental yields in Vietnam, substantial infrastructure investment, and increasing foreign investor participation creating a compelling investment environment.
The combination of tourism recovery, infrastructure development worth $6.25 billion, and government policies supporting foreign investment positions Da Nang as Vietnam's premier secondary city for real estate investment opportunities.
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Sources
- The Investor - Apartment prices skyrocket in Vietnam
- BambooRoutes - Da Nang Price Forecasts
- OSI - Da Nang Property Market Recovery
- Own Property Abroad - Vietnam ROI and Rental Yield
- AchieveReal - Real Estate Investment in Da Nang
- The Investor - South Central Vietnam Industrial Real Estate
- VietnamNet - Real Estate Prices Expand by 59%
- BambooRoutes - Da Nang Real Estate Forecasts
- Numbeo - Property Investment Comparison
- BambooRoutes - House Vietnam Foreigner