Tourism Property Market in Da Nang Thrives as Tourist Arrivals Surge

The tourism real estate market in Da Nang continues an uptrend as it has become a tourist hub in central Vietnam.

The tourism real estate market in Da Nang, one of the major cities in Vietnam, continues an uptrend, with a rise in supply of hotels and condotels in the city, Savills Vietnam has said in a report.

In the fourth quarter (Q4) of 2016, the total hotel stock was approximately 9,030 rooms, up 5% quarter-on-quarter (q-o-q) and 19% year-on-year (y-o-y) thanks to the entry of four newly ranked three- to four-star hotels.

The average occupancy climbed four percentage points y-o-y to over 87%. The average room rate was up 18% y-o-y due to increases in all segments. Revenue per available room (RevPAR) rose 26% y-o-y.

The report adds that, the condotel stock was approximately 3,910 units from 10 projects in the latest quarter, of which 1,325 remained in the primary. Son Tra district was the largest supplier with a 50% share, followed by Ngu Hanh Son with 44%.

Da Nang continues to establish itself as a competitive coastal location for both domestic and international tourists. In 2016, tourist arrivals to the city increased 18% y-o-y to 5.51 million, of which 1.66 million were international, up 13% y-o-y.

The real estate service company notes nine four- to five-star hotels will join the market this year, supplying approximately 2,200 rooms.

“Guaranteed returns are offered in many condotel projects’ pre-sales programs. APEC 2017 will likely increase condotel performance and spur a rush of investments,” says the report. 

Tuan Minh / BizLIVE