Business boom sparks office market growth

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The growing number of enterprises in Da Nang has "strongly affected" the city's office market, creating a strong demand for  more supply, according to UK real estate service provider Savills.

The number of enterprises in the city has been on the increase for over five years, with about 2,100 new companies receiving business licenses in 2009, Savills said in a quarterly report released last week.

Many overseas Vietnamese have opened businesses in Da Nang, which has led to more trading in the local office market, said the report.

Currently, there are 21 office buildings with a total area of around 66,344 square meters. "Savills anticipates that approximately 94,000 square meters of office space for lease from about 14 projects will enter the Da Nang market over the next five to seven years," said the report.

As for the retail market, the company observed that the total retail area of approximately 72,000 square meters remained unchanged in the second quarter with no new retail centers. Occupancy rate reached 96 percent, also remaining stable quarter-on-quarter.

Savills said as the GDP per capita is on the rise in Da Nang, the city has great potential to develop its retail distribution network. "From now until 2012, the Da Nang retail sector is expected to accommodate about five projects, with a total area of about 48,000 square meters of retail space," the company said.

The UK company also said more villa and apartment projects will enter the market over the next few years. In the second quarter this year, four projects were launched, including Vinpearl Da Nang with 39 seaside villas.

Wealthy Vietnamese are the major target purchasers for both villas and apartments in Da Nang, it said.

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