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What is happening in Da Nang’s real estate market? Are prices on the rise or decline? Is Da Nang still a prime location for foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers alike, from the bustling streets of Da Nang to the serene coastal areas. Perhaps you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Da Nang real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) Foreign investors will target luxury properties for higher returns
Foreign investors are turning their attention to luxury properties in Da Nang for several compelling reasons.
In the second quarter of 2024, there was a 44% increase in real estate searches compared to the previous quarter, especially in luxury apartment listings. This shows a strong interest in high-end real estate, as more people are looking for upscale living options.
Vietnam's economy is expanding, and with it, the number of high-net-worth individuals seeking new investment opportunities. These investors are drawn to luxury properties because they offer higher rental yields than other segments. This is largely due to the demand from tourists and the growing middle class who prefer luxury accommodations.
Another factor attracting foreign investors is the price appreciation of luxury properties in Da Nang. For instance, the average price of condotels has risen to US$2,100 per square meter as of 2022. This upward trend is expected to continue, making luxury real estate a potentially lucrative investment.
Da Nang's luxury real estate market is also benefiting from Vietnam's favorable investment conditions. The country's stable political environment and supportive government policies make it an attractive destination for foreign investors looking for high returns.
With these factors in play, it's no surprise that foreign investors are increasingly focusing on Da Nang's luxury properties, seeking to capitalize on the city's growing appeal and potential for high returns.
Sources: CBRE Vietnam, Endevio, Hanoi Times, Vietnam.vn
2) Da Nang's central areas will see moderate price rises due to limited land availability
In Da Nang's central areas, property prices are climbing due to limited land availability.
Over the past few years, Da Nang has seen rapid growth, using up much of its available land for development. This scarcity makes it tough to find new plots for building, which is a key reason for the price hikes.
From early 2023 to late 2024, land prices in central Da Nang jumped by 12%, going from VND40 million/m² to VND45 million/m². This steady rise highlights how the lack of land is pushing prices up.
Da Nang's strategic location and easy accessibility make it a hot spot for both residents and investors. This popularity, especially for high-end properties, is another reason why prices in central areas are soaring.
As more people aim to live and invest in these prime spots, the competition for the limited land becomes fierce. This demand is a big driver of the price increases, making central Da Nang a competitive market.
With its unique appeal, Da Nang continues to attract interest, further intensifying the demand for its scarce land. The central areas are particularly affected, as everyone wants a piece of this vibrant city.
Sources: Bao Da Nang, Vietnam Briefing, Statista
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Vietnam. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) Suburban rents may decrease slightly as more housing options emerge
In Da Nang, over 11,000 new apartments are set to be built by 2025, thanks to a boom in housing projects.
With a 71% jump in traded apartments and houses in early 2024, renters now have more choices, pushing landlords to offer competitive prices.
Government incentives are making suburban areas more appealing, with investments in free trade zones and infrastructure drawing people away from urban rentals.
As more affordable housing options pop up, suburban properties are becoming plentiful, leading to a more balanced real estate market in Da Nang.
Expect a slight dip in suburban rents as housing supply continues to grow and landlords vie for tenants.
With the focus shifting to suburban living, urban rental demand is on the decline, further influencing rental trends.
Sources: Vietnam.vn, Bao Da Nang, Dang Cong San
4) Foreign buyers will increasingly target Da Nang for its favorable investment conditions
Foreign buyers are increasingly eyeing Da Nang thanks to its appealing investment climate.
In 2023, Da Nang welcomed 104 new foreign-invested projects, signaling a strong vote of confidence from international investors. This is happening even though there's been a general dip in FDI capital elsewhere, highlighting Da Nang's unique allure.
The city is buzzing with tourists, drawing in over 7.4 million visitors last year, including more than 2 million from abroad. This influx not only energizes the local economy but also makes property investments more enticing, as high rental yields are expected to follow.
Da Nang is on a mission to transform itself into a smart eco-city by 2030, with significant strides in infrastructure and digital innovation. This ambitious vision, paired with government policies favoring foreign investment, sets the stage for a thriving real estate market.
For those considering property in Vietnam, Da Nang offers a blend of natural beauty and modern conveniences, making it a top choice. The city's proactive approach to development and its welcoming stance towards foreign investors create a fertile ground for real estate opportunities.
Sources: Viettonkin Consulting, VietnamPlus, Travel and Tour World
5) Tax incentives will boost investment in Da Nang’s residential real estate market
In 2025, Da Nang's residential real estate market is set to grow due to new tax incentives.
These incentives, starting January 1, 2025, offer exemptions and reductions in corporate income tax and land rent, especially in the newly established Da Nang Free Trade Zone. This move is designed to attract more investors by easing financial burdens on infrastructure projects, making it a hot spot for potential buyers.
Historically, similar tax incentives in Vietnam have led to increased property investments. For example, the VNĐ30 trillion credit support package in 2013 significantly boosted the real estate market. This suggests that the new incentives could have a similar positive impact on Da Nang's market, making it a promising opportunity for investors.
Recent data from 2024 shows a significant increase in real estate activities in Da Nang. The city has granted numerous construction permits for commercial housing projects, and real estate transactions have notably risen. This growth trend indicates a strong foundation for further investment, which the new tax incentives are likely to enhance.
Investor sentiment is optimistic, with a survey revealing that most brokers in Da Nang reported stable or increased transactions in 2024 compared to 2023. This positive outlook, combined with the new tax incentives, suggests a favorable environment for investment in the residential real estate market.
With these incentives, Da Nang is positioning itself as a prime location for real estate investment, offering a unique opportunity for those looking to enter the market. The combination of tax breaks and a thriving market makes it an attractive option for potential buyers.
Sources: Legal 500, Bao Da Nang, Vietnam News, Lawnet, Vietnam.vn
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6) Rental yields in central Da Nang will remain stable with steady demand from expatriates and professionals
Central Da Nang is a hotspot for expatriates and professionals, ensuring stable rental yields.
Over the years, Da Nang has become a magnet for those seeking a vibrant community and affordable beachside living. The city's appeal is boosted by its improved infrastructure, making it a favorite among digital nomads and expatriates.
The local government is on board, enhancing internet connectivity and promoting coworking spaces. They've also made it easier for longer stays with eased visa options and cultural exchange initiatives, which have fueled the city's economic and job market growth.
International companies are setting up shop in Da Nang, signaling a rising demand for rental properties from both local and expatriate professionals. This influx of businesses is a testament to the city's growing appeal.
Despite new property developments popping up, rental prices in central Da Nang are holding steady or even climbing. In the first half of 2024, rental yields were between 4.2% and 4.5%, showing the area's strong market.
Sources: Global Property Guide, Dezan Shira & Associates, Voyage Nomad, Vietnam.vn
7) Da Nang's rental yields will rise as tourism recovers and more visitors look for short-term stays
In 2025, Da Nang is expected to see 11.9 million tourists, including 4.8 million international visitors.
With this influx, the demand for short-term rentals like Airbnb is set to rise. Currently, the median occupancy rate for short-term rentals in Da Nang is 59%, which is quite favorable. This means many properties are frequently rented out, indicating a healthy market.
As more tourists arrive, these occupancy rates are likely to increase, boosting rental yields. Property owners can expect more bookings, making it a lucrative time to invest in short-term rentals.
The average daily rate for these rentals is about $45 USD. This relatively high rate suggests that property owners can earn substantial revenue. As tourism grows, these rates might increase, further enhancing rental yields.
Da Nang's appeal is not just its beaches but also its vibrant culture and cuisine, drawing more visitors each year. This makes it an attractive spot for property investment, especially for those looking to capitalize on the tourism boom.
With tourism rebounding, rental yields in Da Nang are poised to increase as more visitors seek short-term accommodations. This trend offers a promising opportunity for property investors.
Sources: Airbtics, Travel and Tour World
8) Stricter environmental rules will affect the types of properties developed in Da Nang
Stricter environmental regulations are reshaping property development in Da Nang.
Da Nang is on a mission to become an eco-city by 2030, and it's not just talk. The city is actively conducting environmental impact assessments for new projects, ensuring that every development aligns with its green goals. This is part of the broader initiative, ‘Building Da Nang into an Environmentally-friendly City’ for the 2021 – 2030 period.
The Ministry of Construction is also in on the action, issuing guidelines for green building certification. This push for sustainability is catching on, with more green buildings popping up across Da Nang. By 2030, expect a noticeable increase in these eco-friendly projects, marking a clear shift towards sustainable development.
Da Nang's climate action plan is another piece of the puzzle. It includes strategies to tackle climate change, like cutting down on energy use in homes. This focus on sustainability is backed by investments in green infrastructure, such as the Da Nang Circular Economy Hub, which supports innovative environmental projects.
For potential property buyers, this means that the types of properties available will increasingly reflect these green priorities. Developers are now more inclined to incorporate sustainable practices, which could influence everything from building materials to energy efficiency.
As Da Nang continues to evolve, these regulations and initiatives will play a crucial role in determining what kind of properties can be developed. The city's commitment to becoming an eco-city is not just a vision but a reality in the making.
Sources: Baodanang, Baodanang, Vietnam Briefing, IGES, UNDP
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Vietnam versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
9) Regulations will become more favorable, boosting international investments from foreign buyers
Vietnam is making it easier for foreigners to buy property.
With a new draft decree, foreign property ownership rules are becoming clearer, aiming to open up the housing market and boost real estate growth. This change is part of Vietnam's broader strategy to attract more international investors.
Foreign direct investment in Vietnam has been on the rise, increasing by 32.1% year-on-year. This surge is likely to continue as the economy stabilizes, making Vietnam a hot spot for global investors. The government is also working to make property purchases smoother by simplifying licensing and easing ownership restrictions for foreigners.
In Da Nang, the government has opened up several commercial housing projects to foreign buyers, making the city even more appealing to international investors. The chance to own land in Da Nang is particularly enticing, especially for those interested in premium properties like beachfront villas and scenic condos.
Da Nang's coastal charm adds to its allure, making it a great choice for those considering long-term settlement. The combination of new property opportunities and the city's natural beauty is expected to drive a surge in investment.
These developments are part of a broader trend where regulations are becoming more favorable for foreign buyers, encouraging more international investments in Vietnam's real estate market.
Sources: Vietnam Briefing, ARC Group, CVR
10) Short-term rental investments will increase in An Thuong due to its lively nightlife
Da Nang welcomed over 2 million international tourists in 2023, a remarkable increase from previous years.
This influx of visitors has sparked a boom in the demand for places to stay, especially in lively spots like The An Thuong area, known for its vibrant nightlife. The An Thuong Night Market and Pedestrian Zone are buzzing with activity, attracting both tourists and locals alike.
With its bustling atmosphere, The An Thuong area is becoming a hotspot for short-term rental investments. Visitors love being close to the action, and this area offers just that, making it a prime location for those looking to invest in rental properties.
In Da Nang, the median occupancy rate for short-term rentals is 59%, indicating a healthy demand. Tourists are increasingly choosing to stay in areas with a lively nightlife, and The An Thuong area is perfectly positioned to capitalize on this trend.
Investors are taking note, as the area's popularity continues to grow, driven by its vibrant entertainment options. The An Thuong area is set to see a rise in short-term rental investments, thanks to its appeal to visitors seeking excitement and convenience.
Sources: Airbtics, VietnamPlus, Danang Fantasticity
11) Property values in Cam Le district will rise with the establishment of new educational institutions
The Cam Le district is on the brink of transformation, thanks to new educational institutions popping up.
With the government pouring money into educational infrastructure, property values are set to rise. Back in 2024, Da Nang made a big move by supporting tuition fees for public preschool and general education, showing a real commitment to boosting the educational sector. This kind of investment tends to attract families who care about education, which means more demand for housing.
Looking at other districts in Da Nang, there's a clear pattern: new schools often lead to property value increases. Take District 2 in Ho Chi Minh City, for example, where educational development has driven substantial growth. This trend suggests Cam Le might be next in line for a similar boom. Plus, surveys show that parents love living near schools, which can push property values even higher as families flock to the area.
Real estate market reports back this up, highlighting demand spikes in areas with new schools. In early 2023, while Da Nang's apartment market dipped a bit, the mid-end segment saw a price rise. This trend is likely to continue as more schools open in Cam Le, drawing in buyers and boosting property values. Experts in real estate predict that these new educational establishments will significantly enhance the district's growth potential.
Sources: Vietnam.vn, University of Danang, TMS Consultancy
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12) Da Nang’s property prices will stabilize as the market adapts to increased supply
Da Nang's property market is buzzing with new developments and increased construction.
In the first nine months of 2024, the city approved 13 commercial housing projects, pouring in about VND17,000 billion. This boom has significantly boosted the housing supply, making it an exciting time for potential buyers.
With more properties available, the number of transactions has also surged. In the second quarter of 2024, there were 3,618 real estate transactions, a whopping 71% jump from the first quarter. Even in the third quarter, the market remained lively with 2,935 apartments and houses sold, marking a 128% increase from the same time in 2023.
However, not everything is flying off the shelves. Reports show that nearly 50% of new apartments were sold in the third quarter of 2024, suggesting that while demand is strong, the supply is catching up. This balance is crucial for keeping property prices stable.
For those eyeing a property in Da Nang, this means a more balanced market where prices are likely to stabilize as supply meets demand. It's a good time to explore options without the fear of skyrocketing prices.
As the market adjusts to this increased supply, potential buyers can expect more choices and competitive pricing, making it an opportune moment to invest in Da Nang's real estate.
Sources: Bao Da Nang, Bao Da Nang, CVR
13) Suburban property prices may dip slightly as more developments are finished
Da Nang is buzzing with new housing developments, especially in the suburbs.
By 2025, the city plans to roll out at least 25 new housing projects, adding over 11,000 apartments to the market. This boom could mean an oversupply in suburban areas, potentially nudging prices down as more developments wrap up.
While the real estate scene in Da Nang is on the up, new projects are mostly about apartments. There's a clear demand for these, but not so much for land lots, hinting at a possible oversupply in the suburbs. People are leaning towards city life, drawn by better infrastructure, job prospects, and urban amenities.
The appetite for land lots in Da Nang is pretty low, with most deals happening only when infrastructure and legalities are sorted. This dip in suburban demand is tied to Vietnam's fast-paced urbanization, with cities like Hanoi and Ho Chi Minh City seeing the most growth. Da Nang is likely to follow suit, keeping suburban demand on the back burner.
As urbanization speeds up, population growth is clustering in major cities, leaving suburban areas with less demand. This shift is expected to continue, affecting how suburban properties are valued.
With more developments finishing up, suburban property prices might see a slight dip, making it a buyer's market for those looking outside the city center.
Sources: Bao Da Nang, World Bank, Vietnam.vn
14) Suburban rental yields may dip slightly as property availability increases
In 2023 and 2024, Da Nang's suburbs saw a notable rise in new property developments.
In just the second quarter of 2024, 16 new apartment projects were launched, adding around 2,484 apartments, especially in Son Tra District. This boom means more rental properties are now available, giving potential tenants a wider range of choices.
The primary supply of apartments in Da Nang has increased by 2.5 times compared to the previous year. This surge in availability is reshaping the rental market, offering more options for those looking to rent.
With this influx of properties, the rental market is shifting. As of September 2023, the apartment vacancy rate in Da Nang was 5.0%, which matches the long-term average. This indicates a stable market but also hints at a possible oversupply, which could affect rental demand.
Given the steady vacancy rates and increased supply, rental prices in the suburbs might face some pressure. While specific data on rental price drops isn't available, the trend suggests that rental yields could slightly decline as more properties hit the market.
For those considering buying property in Da Nang, this means there might be opportunities to negotiate better rental terms or find properties at more competitive prices. The market dynamics are changing, and it's a good time to keep an eye on these developments.
Sources: DWS Group, Bao Da Nang, Future Southeast Asia
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.