Real estate investors and experts expect the real estate market in Da Nang and Quang Nam areas to soon thaw after the COVID-19 pandemic.
This expectation was raised in a discussion session at the seminar “The rise of the real estate market in Da Nang, Quang Nam in a new normal” – held on the morning of November 3 in Da Nang.
The seminar was held online at 2 bridge points in Hanoi and Da Nang with the participation of representatives of leaders of the Ministry of Construction; Ministry of Planning and Investment; Ministry of Natural Resources and Environment, local representatives, economic experts, representatives of associations and businesses.
From 2017, 2018 to early 2019, land fever to the point of bubble had a strong impact on the market Quang Nam. But by mid-2019, the fever cooled down and entered a period of calm, even freezing for 2 years, affected by the COVID-19 epidemic.
If in the period 2017 – 2018 the price of buying and selling on the secondary market increases by 80% – 100%/year – depending on the project and region, the increase will be different – between 2019 and 2021, supply and demand will decline sharply. Real estate price level in 2021 will decrease by 15% – 20% on average, in many areas, there will be a decrease of up to 30% – 35% compared to 2019.
The market’s decline comes from many reasons, including the impact of the COVID-19 epidemic from 2020 which analysts believe is the main impact. From October 2021, the epidemic is under control, the anti-epidemic strategy is changed, economic activities and social life begin to return to a new normal.
In the new situation, localities have gradually controlled the COVID-19 epidemic, restarted and restored the economy, with their available advantages and potentials, along with the push to adjust the city planning. According to experts, the real estate market in Da Nang and Quang Nam is on a growing trend. Some new projects are being opened for sale by businesses.
In addition to the objective factors, the Prime Minister issued Decision (No. 359/QD-TTg) approving the adjustment of the general planning of Da Nang City to 2030, with a vision to 2045 with the goal of building the city. Da Nang becoming one of the major socio-economic centers of the country and Southeast Asia… is said to be the foundational factors for the Da Nang real estate market to rise and develop.
Similarly, in Quang Nam in 2020, the Provincial Party Congress has set development goals in the period of 2020 – 2025, in which the urbanization rate by 2025 is about 37%, by 2030 about 40%. In particular, by 2025, the number of tourists will reach 12 million.
Adjustments to the general planning of Da Nang City, especially in terms of traffic connection between Da Nang and other provinces in the region, and upgrading of Quang Nam urban areas are considered as driving forces for the development of the real estate market, including: including tourist and residential real estate in this locality.
Experts analyze that the real estate market in Da Nang and Quang Nam has gone through stages, including two peaks of development (2003-2020). However, from 2013 to 2016, it was a period of falling to the bottom. And from the middle of late 2019 to now is freezing. But from 2022 will be the period of resurgence.