Da Nang new apartment prices rise by 20%

Most of them were luxury developments, according to a report by Canadian property services firm Avison Young.

In a 25-floor tower on Bach Dang Street in the downtown area, apartments were sold for up to $4,800 per square meter.

But absorption rate was only 35-40% due to buyers’ caution amid rising prices and changes in regulations.

Data from another property services firm, DKRA, showed that in July the absorption rate was 55%.

There has also been a decline in speculation, Ha Nghiem, director of the Da Nang office of property listing firm Batdongsan, said.

Most buyers are interested in apartments that cost VND2-4 billion ($80,000-160,000), he said.

Many buyers expect to earn incomes from leasing their apartments as the city expects to attract 8.4 million tourists this year, nearly as much as in 2019 (before Covid-19), he said.

Leasing offers landlords a steady yield of around 4.5% a year, he said.