More than 70 billion VND for a villa in the central sea19/04/2022
The Hue holiday villa market is priced at VND 73 billion a unit, 1.8 times more than Da Nang, an increase of 7-10% compared to the previous sale.
DKRA Vietnam’s report on the real estate market in Hue, Quang Nam and Da Nang states that in 2021, despite difficulties due to the impact of the Covid-19 pandemic, the selling price of holiday villas on the primary market (the first launching investor) in these provinces has gradually reached the threshold of several million USD per product.
The basket of villas on the coast of Thua Thien Hue recorded a new product worth 73 billion VND per unit, which is the highest level in the three central provinces surveyed while increasing prices the most (7-10% in the past year). The sale price of holiday villas in Quang Nam, Da Nang, respectively, recorded the highest level of 40-50 billion VND per apartment. Meanwhile, the beach villas with the lowest selling price in these three provinces range from 9-12 billion VND per unit.
Although the supply of new coastal villas in Hue, Quang Nam, Da Nang recorded a ceiling price of 2-3 million USD per unit, the liquidity of the primary market is still modest. In Hue, the consumption is only 20% of the basket while in Quang Nam, the absorption is less than 25%. This market recognizes investors who apply profit commitment and profit sharing programs to customers who buy products.
Meanwhile, the normal prices of townhouses and villas (not belonging to the group of seaside resorts) in Hue, Quang Nam and Da Nang respectively recorded the highest offer of VND 18.2 billion; VND 18.8 billion and VND 19.3 billion per unit.
Housing located in Da Nang has the lowest selling price of 9.5 billion VND per unit and the highest price of 19.3 billion VND per unit. The total new supply in the past year in this locality reached 110 units, mainly concentrated in Hai Chau district, sold 92 units (84% of the basket). Basket of houses, villas in this province increased 3.7 times compared to 2020 but still far behind in the period 2016-2019 and 2-4 times lower than in 2018-2019.
Townhouses and villas in Quang Nam have the highest preliminary selling price of VND 18.8 billion an apartment but still produce products with the lowest price of VND 3.6 billion an apartment. The big difference in price is due to the difference in location, construction quality and brand of each project. Thua Thien Hue has selling prices of townhouses and villas fluctuating in the region for 4.5-18.2 billion VND per unit.
Although the selling price of adjacent houses in Hue, Quang Nam, Da Nang recorded an increase in the primary market (investors opening for the first time), the liquidity of the secondary market (investors buying again and again) is still low. The market almost hibernated during the outbreak of the pandemic in mid 2021 and showed only slight signs of recovery at the end of the year.
DKRA forecasts that by 2022 the market of holiday villas in these 3 central provinces can reach 1,150 shophouses, the sea is expected to launch 800 new products. If the recovery of the resort tourism market is positive, it is likely that the demand for investment in adjoining assets in these 3 central coastal provinces may increase but it is difficult to achieve the high growth threshold as in the golden age of 2026-2019.