Investors are increasingly keen on the luxury housing segment in Da Nang. According to a report released by CBRE Vietnam, real estate projects in downtown of the coastal city offer high rental yields, from 3-6% per year in luxury townhouse and villa segment, and the most popular rate ranging from 4-5% per year.
According to experts, the demand for high-class real estate in Da Nang is increasing due to the outstanding growth of the tourism industry, with an annual growth rate of over 20%. The luxury real estate segment, targeting tourists, is getting more and more attention from investors.
Da Nang has high potentials for luxury real estate development.
Experts said luxury projects in Da Nang not only to meet the demand for housing of the upper class, but also to contribute significantly to changing the appearance of the coastal city.
There are more opportunities for investors to touch down the city’s luxury real estate market. Recently, the Da Nang Construction Department has released a list of 17 property projects which are elegible for foreign ownership. Danang is also expected to become a tourist hub like Shanghai or Singapore.
Market research firms said thanks to good prices, high-class projects in Da Nang have been receiving great attention from foreign buyers. The average price of houses and apartments in the luxury segment is in the range of $3,500 - 5,500 per sqm. Meanwhile, prices of the same units in Taiwan or Hong Kong are many times higher. Penthouses in central Singapore are priced at tens of millions of dollars.
In addition to potentials for price increase, high profitability and competitive prices, the introduction of lower tax rates compared to other regional countries is also a factor that creates attraction for luxury real estate in Da Nang. The coastal city is predicted to continue to be a market with great attraction for capital flows as well as high-end real estate projects.
