Major coastal property projects launched in Đà Nẵng

Premier Village Danang Resort. — VNS Photo

ĐÀ NẴNG – Property developers have started constructing coastal projects in the central city in response to the rising prices of coastal property following the stagnant period in  二0 一 三- 一 五.

Reputable property developers, including Novotel, Fusion Suite and Sheraton, and local groups Vinpearl, Sovico, Furama, Đa Phước Urban and Mường Thanh have all started work on their projects in the city.

A manager at Thiên Kim Property Transaction Centre in the city said coastal projects were priced at VNĐ 三 五 million (nearly US$ 一, 六00) to VNĐ 一00 million per square metre during an eight-month period starting in the second quarter of  二0 一 五.

“Most of the major projects began construction in late  二0 一 五 and early  二0 一 六, and these will be put into operation in two to three years,” the owner of Thiên Kim Property company, Huỳnh Thị Thanh Thảo, said.

“The price of small real estate projects, including terrace houses, villas and apartments, along the coast from Đà Nẵng to Hội An City had increased by  八- 一0 per cent in late  二0 一 五,” Thảo said.

She said the sale of coastal property projects covering an area of  一 七- 二0ha was booming among speculators from Hà Nội and HCM City at unofficial transaction centres.

Thao said she had witnessed  二0 hotel projects valued at VNĐ 四00 billion ($ 一 八 million), which had been sold between June and October last year.

Nguyễn Thị Kim Nữ, a property developer, said foreign investors could earn plenty of profit from local properties as they would benefit from the difference in bank loan rates.

“Local investors and businesses have to take loans from banks, with a  九 per cent interest rate, so foreign direct investors could provide more competitive low-interest loans to the Vietnamese market,” she said.

She said this was one way that foreign investors could benefit from preferential and promotional policies from the Government of Việt Nam.

Huỳnh Trấn Quốc, a property broker, said both local and foreign investors flocked to start work on a series of condotel projects in Đà Nẵng from late  二0 一 五, with a promise of  九 or  一0 per cent interest.

Nguyễn Minh Tuấn, a member of Đà Nẵng Real Estate Association, said Mường Thanh Group had sparked a boom in the property market in Đà Nẵng when they started construction of its coastal complex of luxury apartments and hotels, offering  一,000 flats for occupation by  二0 一 七.

Tuấn said the Furama Ariyana Condotel project, which was developed beside the five-star Furama Đà Nẵng resort, built in  二00 五, had also offered its beachfront apartments at an annual  一0 per cent interest for investors over  一0 years, making different promises of incentives in the form of preferential policies.

Lê Minh Hiệp from VNG Land, a distribution agent of Coco Ocean Resort project, said the project owner had even offered a  一 二 per cent sublease rate for its condotel project.

“The condotel project, which includes the Empire’s Coco Bay Đà Nẵng Tourism Entertainment Complex, was launched for sale at VNĐ 二 九. 五 million ($ 一, 三00) per square metre, with a guaranteed sublease rate of  一 二 per cent interest over eight years,” Hiệp said.

He said the VNĐ 一 四-trillion ($ 六 二 二 million) complex on the beach of Mỹ Khê, linking Đà Nẵng and Hội An from its location between two golf courses – the Montgomerie Links Việt Nam and Đà Nẵng Golf Club -- was seen as a favourite destination and ideal recreational habitat in the central region.

Đà Nẵng City is generally seen as a favourite destination for foreign investment in Việt Nam, taking the top spot on the Provincial Competitive Index (PCI) for the past five years.

The city also hosted  四. 六 million tourists, of which  一. 二 五 million were foreigners, in  二0 一 五.

According to the city’s Investment and Promotion Centre, there were  二, 九 八 八 new businesses in the first  一 一 months of  二0 一 五, up  四 五. 九 per cent year-on-year, with registered capital of approximately VNĐ 一0 billion ($ 四 四0,000).

Đà Nẵng is the most mature coastal market, catering to a range of visitors, including traditional and MICE guests. Apart from its beautiful beaches, it is also the economic hub of Việt Nam. Most of its upscale acco妹妹odation is found along the white sandy beaches of Ngũ Hành Sơn District.

In  二0 一 五, occupancy of the five-star segment was  六 七 per cent, the highest among the three cities including Nha Trang, Phú Quốc and Đà Nẵng.

The city also offers top-priority policies to attract significant investment from Japan and some Japanese investors have moved their plants from China to Việt Nam. – VNS

Premier Village Danang Resort of Sun Group is an attraction for real estate investors. — VNS PhotoCoastal property projects are developed along pristine beaches of Da Nang. The beach real estate has seen as a magnetic market in the central region with big brand developers including Novotel, Suite Fusion, Sheraton, Empire and local Vinpearl, SunGroup, Sovico and Muong Thanh Group. — VNS Photos Cong Thanh