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What will happen in Da Nang’s real estate market? Will prices go up or down? Is Da Nang still a hotspot for foreign investors? How is Vietnam’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with local developers, real estate agents, and clients who buy properties in Da Nang, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Stricter rules for foreign investors in Da Nang will balance the market for local buyers
Da Nang is tightening rules on foreign property ownership to balance the market for locals.
With the new Housing Law kicking in on January 1, 2025, foreigners can own only up to 30% of residential apartments in any building, and their ownership is capped at 50 years. This move is designed to give local buyers a fairer shot at the market.
On top of that, the Real Estate Business Law, also effective in 2025, is bringing in stricter rules for real estate deals. By capping deposits and requiring more paperwork, the law aims to make the market more transparent and balanced.
Da Nang's local government is also on board, planning economic growth strategies for 2024-2025 that include measures to regulate and balance the market. This shows a clear intent to keep a closer eye on foreign investments.
These changes are a response to the recent surge in foreign property purchases, which had been causing market imbalances. The Vietnamese government is keen on ensuring that local buyers have more opportunities in the property market.
For those considering buying property in Da Nang, these new regulations mean a more level playing field, with fewer foreign investors dominating the scene.
Sources: Da Nang Announces Four Housing Projects Available for Foreign Ownership, A Comprehensive Guide to Vietnam's Foreign Property Laws, Da Nang's Three Economic Growth Scenarios Identified for 2024-2025 Period, Vietnam's New Real Estate Business Law: Key Provisions
2) Real estate prices in the city will stabilize moderately as new housing meets demand
In 2023 and 2024, Da Nang's real estate market buzzed with activity, showcasing a 71% jump in transactions in the second quarter of 2024 compared to the first.
With the Da Nang People’s Committee's ambitious plans, the city aims to complete over 53,000 apartments by 2025, focusing on urban areas to meet the growing population's needs.
By late 2024, new housing projects like the Han River Apartment Complex were ready for sale, boosting the market's growth and offering more choices for buyers.
The number of apartment listings surged by 56% in the second quarter of 2024, highlighting a significant rise in housing inventory that helps balance supply and demand.
These developments are crucial as they indicate a strategic approach to accommodate the city's expanding population, ensuring that housing needs are met efficiently.
As new housing projects continue to meet demand, the city's real estate market is expected to stabilize, offering a more balanced environment for potential buyers.
Sources: Baodanang, Baodanang, Vietnam.vn
We have made this infographic to give you a quick and clear snapshot of the property market in Vietnam. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Property prices in Da Nang's tourist areas will dip slightly during off-peak seasons
In Da Nang, property prices in tourist areas are expected to dip slightly during off-peak seasons.
Why? Well, it's all about the tourists. When they're not around, hotel occupancy rates drop significantly. For example, during national holidays in 2024, those fancy beachfront hotels were only 30-40% full. This shows a clear pattern of fewer tourists during these times.
Looking back, we see a similar trend. In early 2023, secondary apartment prices in Da Nang fell by nearly 20% compared to the previous year. This drop hints that property values in tourist-heavy spots are quite sensitive to the ebb and flow of visitors.
Even during big events like the 2024 Da Nang International Firework Festival, where occupancy rates hit 99% on the last night, this was more of an exception than the rule. Come August 2024, those same hotels saw occupancy plummet to less than 40%, underscoring the seasonal demand shifts.
So, if you're thinking about buying property here, keep in mind that prices might be more favorable during these quieter times. It's a classic case of supply and demand, with tourism being the key driver.
Understanding these patterns can give you an edge in the market, especially if you're looking to invest in areas that rely heavily on tourist traffic. Timing your purchase during off-peak seasons could mean better deals.
Sources: VnExpress, Bao Da Nang, SGGP
4) Da Nang's rental market will dip temporarily during the rainy season as tourism decreases
The rental market in Da Nang takes a hit during the rainy season when tourism slows down.
From September to December, Da Nang experiences heavy rains, and tourist numbers drop significantly. This isn't just a small dip; in both 2023 and 2024, international tourists visiting during these months fell by over 20% compared to the dry season. This means fewer people are looking for places to stay, impacting the rental market.
During this wet season, occupancy rates for rentals like hotels and vacation homes plummet. In 2024, many property owners reported lower occupancy due to the relentless rain and stormy weather. Local real estate reports back this up, consistently showing a decrease in rental inquiries during these months.
Property owners have noticed this trend too. Surveys reveal that fewer people are interested in renting during the rainy season, as potential renters often prefer to avoid traveling in such weather. This is further supported by statistics on hotel and short-term rental bookings, which show a significant drop in bookings for Da Nang during September, October, and November.
For those considering buying property in Da Nang, it's worth noting that the rainy season can affect rental income. However, this is a temporary phase, and the market tends to bounce back once the weather clears up and tourists return.
Understanding these seasonal patterns can be crucial for making informed decisions about property investments in Da Nang. Being aware of the rainy season's impact can help you plan better and set realistic expectations for rental income during these months.
Sources: House Rental Da Nang, Airbnb, Bao Da Nang, Premier Village Da Nang
5) More foreign buyers will invest in Da Nang’s residential market because of good investment conditions and lifestyle appeal
Foreign buyers are eyeing Da Nang's residential market because of favorable investment conditions and lifestyle appeal.
In recent times, Da Nang has seen a 45% jump in apartment searches and bookings in just a few months, showing a clear interest from both local and international investors. This surge is a testament to the city's growing allure.
Da Nang's connectivity is on the rise, with the city gearing up to welcome 11.9 million tourists by 2025, including a significant number of international visitors. This influx not only boosts tourism but also underscores the city's investment potential.
Government initiatives, like the creation of a free trade zone and a financial center, are paving the way for increased foreign investment in real estate. These policies are designed to make Da Nang even more attractive to investors.
For expatriates, Da Nang offers a blend of affordable living, rich culture, and modern amenities. The city is home to international schools and a thriving expat community, adding to its charm.
High-end apartment projects along the Han River are catching the eye of investors, especially those from Hanoi, highlighting the city's appeal for luxury living.
Sources: Global Citizen Solutions, Travel and Tour World, Bao Da Nang, Find a Way Abroad
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6) Interest in eco-friendly homes will grow as Da Nang residents become more environmentally conscious
Eco-friendly homes are gaining traction in Da Nang as environmental awareness grows among its residents.
In 2024, there was a remarkable surge in investment in eco-friendly projects, with a growth rate of 215.6% compared to the previous year. This indicates a strong shift towards sustainable construction, with more resources being allocated to these initiatives.
The development of eco-industrial parks, like the one in Hoa Khanh, underscores a move towards sustainable practices. Projects such as the FPT Complex are setting the stage for future construction by using eco-friendly materials and energy-saving standards.
There's also a rise in the production and use of sustainable building materials. Companies like the Da Nang Light Concrete Joint Stock Company are innovating with materials like high-performance concrete self-inserting bricks. Government-funded projects are also adopting unbaked bricks to help reduce environmental pollution.
Real estate developers are increasingly focusing on green building projects. The Nam O Eco-Tourism Area project, for instance, had a high implementation value in 2024, reflecting a growing market for eco-friendly homes driven by both consumer demand and developer interest.
7) Rental yields in suburbs will rise as families seek quieter living away from city centers
Families are increasingly choosing to live in suburban areas like Da Nang.
In Da Nang, the population has been growing steadily, with an estimated 1,253,230 residents in 2024, marking a 2.67% annual increase. This growth indicates that more families are opting for the suburbs, seeking a quieter lifestyle away from the bustling city center.
City center property prices are rising, with the average house in Da Nang costing around $290,000, which is quite steep for many. As these prices climb, suburban areas become a more affordable option. Improved infrastructure, such as better roads and public transportation, makes these areas even more appealing, allowing families to enjoy suburban life without losing access to city amenities.
Suburban areas are also expanding their schools and healthcare facilities, which is a big draw for families. These expansions provide essential services, and lower crime rates in these areas offer a safer environment. The trend of remote working further supports this shift, as it allows families to live further from city centers without affecting their work opportunities.
Rental market analysis shows that rental prices in suburban areas are on the rise. In Da Nang, the average gross rental yield in suburban areas is higher compared to city centers, indicating an increase in rental yields. This is supported by real estate market reports highlighting the strong demand for suburban properties, such as in the Ngu Hanh Son district.
In Ngu Hanh Son, property prices range from $1,200 to $3,100 per square meter, reflecting the growing interest in these areas. As more families move away from the city center, rental yields in suburban areas are expected to increase, making them an attractive investment opportunity.
Sources: Global Property Guide, World Population Review, FazWaz, Minut Blog, TMS Consultancy
8) Da Nang’s property prices will rise steadily due to infrastructure growth and urbanization
Da Nang's residential market is on the rise, thanks to its booming infrastructure and urbanization.
With projects like the Hoa Lien - Tuy Loan and Da Nang - Kon Tum expressways, the city is enhancing its regional connectivity. These developments are not just about roads; they're about making Da Nang a more attractive place to live and invest. Imagine cutting down your commute time significantly or having easier access to neighboring regions. That's the kind of convenience these projects bring, and it's a big reason why property prices are climbing.
As Da Nang's economy flourishes, more people are flocking to the city. This isn't just a local trend; people from all over Vietnam and even internationally are making Da Nang their home. This influx is driving up the demand for housing, especially apartments. In 2023, the supply of new apartments has noticeably increased compared to 2022, reflecting this growing demand.
Foreign investments are also playing a pivotal role. Take the Lien Chieu Port, for example. This deep-sea port project has attracted significant foreign capital, creating new economic opportunities and boosting the city's connectivity. Such developments are turning Da Nang into a bustling urban hub, drawing more interest from property buyers.
Da Nang's transformation isn't just about infrastructure; it's about becoming a vibrant urban center. The city's improved infrastructure and growing status are making it a hotspot for real estate investment. Buyers are increasingly interested in what Da Nang has to offer, from its modern amenities to its strategic location.
Sources: Bao Da Nang, The Investor, QDND
We made this infographic to show you how property prices in Vietnam compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Luxury property yields will drop as the market gets crowded with high-end developments
The luxury property market in Da Nang is seeing a surge in high-end developments.
With so many new luxury properties popping up, many units are sitting unsold. Take the Landmark Da Nang project, for instance, which still has 55 out of 197 units waiting for buyers. This oversupply is making it tough for sellers to find interested parties.
As a result, rental yields for these luxury properties are hovering around a low 1.5-2% per year. This is a big drop in potential income for property owners. Developers are feeling the heat and are cutting prices to lure in buyers, which is further squeezing the yields.
Interestingly, there's a shift happening. More people are now eyeing mid-range properties instead of luxury ones. This change in preference is reducing demand for high-end properties, which means even lower yields for those still holding onto luxury units.
Media reports are buzzing about the market saturation, with developers trying all sorts of tricks to fill their properties. They're offering perks like free rent or slashed fees just to get tenants in the door.
In the end, the luxury property scene in Da Nang is feeling the pinch as the market gets crowded with high-end options, leading to declining yields for investors.
Sources: Baodanang, CVR, Vietnam.vn
10) New home designs in Da Nang will change due to stricter environmental rules
Da Nang is stepping up its game in environmental protection with new measures and regulations.
Part of the "Da Nang City Climate Action Plan" involves thorough environmental impact assessments for construction projects, ensuring that new developments are sustainable. This means if you're looking to buy property here, you might notice a shift towards more eco-friendly designs.
The city isn't just talking the talk; it's walking the walk with policies like Decision No. 7702/QD-UBND, which targets environmental hotspots. This shows a clear move towards stricter enforcement and higher penalties for those who don't comply, so developers are more motivated to go green.
There's a buzz around eco-friendly building certifications in Vietnam, and Da Nang is no exception. Thanks to the Ministry of Construction's push for sustainable practices, green building projects are on the rise. This is great news if you're keen on investing in a property that's both modern and mindful of the environment.
People are increasingly leaning towards homes that are kind to the planet. Surveys highlight a growing preference for sustainable living, which aligns with Da Nang's focus on reducing carbon emissions and promoting eco-friendly buildings. So, if you're considering a move, you're in good company.
Sources: Vietnam Briefing, IGES, Invest Da Nang
11) Rental yields for mid-range homes in Da Nang will rise as local professionals drive demand
Da Nang is buzzing with opportunities for local professionals, especially in the tech industry.
With big names like FPT Software and Intel setting up shop, job opportunities are booming, drawing in a wave of professionals looking for mid-range homes. These folks want to live close to work, making the city a prime spot for residential growth.
Tourism is also on the upswing, with Da Nang aiming to welcome millions of visitors. This influx not only boosts the local economy but also fuels the demand for rental properties, especially in urban areas where professionals prefer to settle.
The city's push to enhance its economy and infrastructure is paying off, making it even more appealing for businesses and professionals. As a result, the real estate market is thriving, with more people eyeing Da Nang as a great place to live.
Searches for real estate in Da Nang are climbing, showing a growing interest in the city. This trend is driving up demand for mid-range homes, as more professionals make the move to Da Nang.
With this surge in demand, rental yields for mid-range properties are on the rise, making it a promising market for potential investors.
Sources: Vietnam.vn, Vietnam.vn, Bao Da Nang
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12) Property prices in Da Nang will keep rising as it becomes a more desirable place to live
Da Nang's residential property prices are climbing due to several key factors.
In recent years, steady population growth has fueled housing demand in Da Nang. As more people move to the city, the need for homes increases, naturally driving up property prices.
The city is also seeing a rise in its expatriate community. Expats are drawn to Da Nang's stable economy and modern infrastructure, which boosts the demand for residential properties. This influx of international residents enhances the city's appeal as a desirable place to live.
Luxury and high-end residential properties, especially along the Han River, are in high demand. In early 2024, apartment searches surged by 45%, showing a strong interest in upscale living. This trend underscores Da Nang's reputation as a sought-after living destination, further elevating property prices.
Da Nang's growing reputation as a desirable living destination is evident in its real estate market dynamics. The combination of population growth, an expanding expatriate community, and a surge in luxury property demand all contribute to the upward trend in property prices.
Sources: Bao Da Nang, Bao Da Nang
13) Rental yields in Da Nang will rise as more long-term expatriates move to the city
Rental yields in Da Nang are set to rise as the city becomes a hotspot for long-term expatriates.
In recent months, the number of expatriates moving to Da Nang has surged, creating a strong demand for long-term rental properties. This trend indicates that more people are choosing to settle in Da Nang for extended periods, which is pushing rental prices upward.
During the third quarter of 2024, apartment demand in Da Nang jumped by 45% compared to earlier in the year. This isn't just local interest; foreign investors, especially those from Hanoi, have shown a 90% increase in interest. With such a competitive market, property owners can charge higher rents, leading to better rental yields.
Da Nang's appeal is also growing due to the expansion of multinational companies in the area. These companies bring in expatriates who often look for long-term rentals, sometimes with housing assistance from their employers, further boosting the rental market.
The Vietnamese government is playing a role too, with initiatives like establishing a free trade zone. These efforts are making Da Nang's real estate more attractive, especially in the high-end market, drawing in more foreign investment.
Sources: Bao Da Nang, Vietnam.vn
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.