Interest in the property market in the biggest central city is expectedto rise in low and medium priced neighborhoods after the Da NangPeople's Council announced new rates for 2014.
Under the new rates, land fronting Nguyen Van Linh, Hung Vuong and LeDuan streets will become the city's most expensive real estate, withprices of 25.2 million VND (1,200 USD) per square metre or 37.5 percentless, in comparison to last year's price of 40.32 million VND (1,920USD).
Meanwhile, each square metre of commercialreal estate in the main downtown is to range from 15.2 million VND (723USD) to 21.8 million VND (1,038 USD).
Further, a square metre of new residential property in outlying areas will be priced at 5 million VND (238 USD).
The decreased price of land is meant to end the stagnation in the realestate market in the central city, as seen in recent years.
According to vice chairman of the city's Property Association Vo VanCuong, sales of real estate in the city in 2013 saw a sharp decline of80 percent.
"It's actually a poor year for sellingproperty in the city. We estimated that 12,000 plots of land from 26projects had been available, even as they were intentionally offeredwith large discounts under special promotional programmes," Cuong said.
"In the final quarter of the year, investorsoffered a mass sale at reduced prices, but the city's property marketsaw a slump in different sections of resettlement and residentialapartments and urban areas.
"Sun Group, a propertydeveloper, has reduced sales prices for lands in its urban project inCam Le district from 500 million VND (23,800 USD) for a 100sq.m plot to340 million VND (16,200 USD)."
He added that theGolden Hills urban project in Lien Chieu district has offered the publica 50 percent price decrease, from 4.5-5.5 million VND per square metreto 2-2.3 million VND, to boost sales in the final quarter of the year.
Meanwhile, Nguyen Minh Tien, a real estate broker, said land prices in the central city have been falling sharply.
"Investors could earn a big profit from lucrative land purchases inthe past few years, but they rarely spend money in property speculation.Brokers now only expect a small profit to deal with huge inventories,"Tien said.
He also suggested that speculators wouldearn profits in the long term through the purchase of small and mediumplots for housing.
Investors also offer a five-month deferred payment for land plots valued at 500 million VND to lure buyers.
The vice chairman of the Da Nang Property Association, Cuong, said heexpects apartments with prices of 3-5 million VND per square metre wouldbe attractive to buyers in the first quarter of next year.
At the same time, tourism property developments have attracted foreigninvestment. According to the city's investment promotion centre,investment in resorts and tourism made up 22 percent of the city's totalFDI projects in 2013.-VNA
Under the new rates, land fronting Nguyen Van Linh, Hung Vuong and LeDuan streets will become the city's most expensive real estate, withprices of 25.2 million VND (1,200 USD) per square metre or 37.5 percentless, in comparison to last year's price of 40.32 million VND (1,920USD).
Meanwhile, each square metre of commercialreal estate in the main downtown is to range from 15.2 million VND (723USD) to 21.8 million VND (1,038 USD).
Further, a square metre of new residential property in outlying areas will be priced at 5 million VND (238 USD).
The decreased price of land is meant to end the stagnation in the realestate market in the central city, as seen in recent years.
According to vice chairman of the city's Property Association Vo VanCuong, sales of real estate in the city in 2013 saw a sharp decline of80 percent.
"It's actually a poor year for sellingproperty in the city. We estimated that 12,000 plots of land from 26projects had been available, even as they were intentionally offeredwith large discounts under special promotional programmes," Cuong said.
"In the final quarter of the year, investorsoffered a mass sale at reduced prices, but the city's property marketsaw a slump in different sections of resettlement and residentialapartments and urban areas.
"Sun Group, a propertydeveloper, has reduced sales prices for lands in its urban project inCam Le district from 500 million VND (23,800 USD) for a 100sq.m plot to340 million VND (16,200 USD)."
He added that theGolden Hills urban project in Lien Chieu district has offered the publica 50 percent price decrease, from 4.5-5.5 million VND per square metreto 2-2.3 million VND, to boost sales in the final quarter of the year.
Meanwhile, Nguyen Minh Tien, a real estate broker, said land prices in the central city have been falling sharply.
"Investors could earn a big profit from lucrative land purchases inthe past few years, but they rarely spend money in property speculation.Brokers now only expect a small profit to deal with huge inventories,"Tien said.
He also suggested that speculators wouldearn profits in the long term through the purchase of small and mediumplots for housing.
Investors also offer a five-month deferred payment for land plots valued at 500 million VND to lure buyers.
The vice chairman of the Da Nang Property Association, Cuong, said heexpects apartments with prices of 3-5 million VND per square metre wouldbe attractive to buyers in the first quarter of next year.
At the same time, tourism property developments have attracted foreigninvestment. According to the city's investment promotion centre,investment in resorts and tourism made up 22 percent of the city's totalFDI projects in 2013.-VNA
