Hanoi buyers dominate Da Nang real estate market

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The residential real estate market in Da Nang is mainly driven by buyers from Hanoi because of the city's proximity and advantageous weather conditions, says consulting firm CB Richard Ellis.

According to the company's latest quarterly report, in the first three months this year, 51 percent of buyers were from Hanoi while locals accounted for 39 percent. CBRE said the beach was another factor that helps the central city attract many buyers. 

In terms of prices, the luxury residential segment remained quite steady in the first quarter, with that of condos falling slightly to US$1,787 per square meter from $1,842 per square meter. Meanwhile, mid-end condo prices have risen in the last two quarters, the report said.

CBRE said there has been no additional luxury or high-end supply in the last three quarters. "Developers are shifting their priority to mid-end projects to deliver more affordably priced units to a larger market of potential buyers. Currently the mid-end segment accounts for the largest market share at 47 petcent of the total residential market supply," the company said in its report.

It said an additional 2,500 units across all segments will enter the market through 2014.

The report also noted that the land plot market in the city is "hot" since a sharp increase in supply started in the third quarter of 2010. "Most land buyers are speculators, those who are looking for a profit within a shorter time horizon."

Da Nang's economy expanded 12.7 percent in the first quarter compared to the corresponding period last year, CBRE said.

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