Condotel prices dropped
According to DKRA, in 2023, the condotel segment in Da Nang and the Central region will record a significant decrease in primary supply, only 61% over the same period, mainly coming from the inventory of The old project was opened for sale before.
Overall market demand is low, consumption recorded the lowest level in the past 10 years and is only 3% compared to 2022. Transactions are concentrated largely in product groups with selling prices fluctuating around 3 – 4 billion VND/unit.
A series of projects stopped being implemented due to legal problems, businesses lacked capital, and the general market was facing difficulties, negatively affecting investor psychology, causing market liquidity to continuously decline from the middle of the second quarter of 2022 to the end of the second quarter of 2022. now.
A series of projects stopped being implemented due to legal problems, businesses lacked capital, and the general market was facing difficulties, negatively affecting investor psychology. (Illustration)
Sharing with Tien Phong, a broker in Da Nang said that the reason condotel prices in this city are expensive is because, from a fishing village on the Han River, this city has now become one of the most valuable and livable cities. top in the world. Therefore, the number of international visitors coming here to travel and live is increasing.
Thanks to that, the condotel and luxury apartment rental market for foreigners, especially Koreans and Japanese, is quite vibrant with rental rates ranging from 20 – 25 million VND/month. Therefore, it is understandable that apartments cost hundreds of millions of VND/m2.
“Before the COVID-19 epidemic, there was a wave of people flocking to the central coastal provinces such as Da Nang, Phu Yen, and Quang Nam to invest in apartments, causing the apartment market to continuously increase in price. Many people explain that buying this apartment is just for the family to vacation when they have time, but when they normally rent it to foreign guests, the profit doesn’t go anywhere but it’s a loss,” this broker said.
However, when the COVID-19 epidemic appeared, the condotel and apartment rental market dropped, leading to a decrease in selling prices but still remaining at a fairly high level.
The condotel rental market has dropped, leading to a decrease in selling prices but still remaining at a fairly high level. (Illustration)
Actual survey, currently some apartment projects in Hai Chau district (Da Nang) are fluctuating between 110 – 130 million VND/m2, while apartments in other areas such as Son Tra, Ngu Hanh Son have Price is at 50 – 70 million VND/m2. Talking to reporters, a broker said that despite continuously posting ads for sale, the number of customers calling to inquire about prices is very small because of the high price, so customers are not very interested.
According to many experts, brokers and investors, the current real estate market is no longer cyclical as predicted, but instead is a deliberate purification to create long-term stability. Therefore, professional investors are focusing on observing, evaluating and recognizing the true nature of the problems after witnessing the Government’s drastic intervention in recent times…