qmr brief da nang - pdf.savills.asia · qmr brief – da nang vietnam gdp growth reached 7.1%,...
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QMR Brief – Da Nang
Vietnam GDP growth reached 7.1%, bolstered by strong manufacturing and exports. The expansion of the
service sector was robust, supported by private consumption and record tourist arrivals. National retail
sales of goods increased 12% YoY to US$145 billion.
Total export value in 2018 exceeded US$244 billion, resulting in a trade surplus of US$7.2 billion. FDI
sectors accounted for over 70% of export value, the US remained the largest market.
Although total registered FDI slightly decreased -1% YoY, disbursed FDI in 2018 increased 9% to over
US$19 billion.
QMR Brief – Da Nang
Source: Savills Research & Consultancy
Source: Savills Research & Consultancy
Source: Savills Research & Consultancy
RETAIL: NEW PROJECTS INCREASED RENT
Total stock was approximately 210,000 m², up 13% year-on-year
(YoY) after the entry of two projects in Hai Chau district and another
in Ngu Hanh Son district. Hai Chau retained the largest market share
and highest retail density.
Average ground floor gross rent continued its upward trend with 3%
YoY increase whilst occupancy declined -5 ppts YoY. The changes
were due to new project launches.
Four new projects will come online in 2019.
OFFICE: INCREASED GRADE B SUPPLY AND RENT
Total stock increased by 3% YoY due to the launch of Hilton Bach
Dang in Hai Chau district. The district continued to dominate with 75%
market share.
Average gross rent increased 23% YoY whilst occupancy decreased -3
ppts YoY. Grade B had the most improved rent and Grade A registered
the most improved occupancy.
From 2020 onwards, the market will welcome four projects, mostly
located in Hai Chau district.
HOTEL: SOFT PERFORMANCE
Total stock was approximately 13,400 rooms. In 2019, approximately
2,200 three- to five-star rooms will come online.
Average occupancy decreased -7 ppts year-on-year (YoY) due to large
new supply. ARR was down -9% YoY and RevPAR was down -18%
YoY.
Da Nang continues to establish itself as a leading destination for
domestic and international tourists. In 2018, Da Nang welcomed 7.7
million visitors, up 16% YoY. International visitors were up 23% YoY
to 2.9 million.
FIGURE 1
FIGURE 2
FIGURE 3
0
16
32
48
64
80
0
1,000
2,000
3,000
4,000
5,000
5-star 4-star 3-star
Hote
ls
Room
s
No. of rooms No. of hotels
0
20
40
60
80
100
Department store Shopping centre Retail podium
0
100
200
300
400
500
600
700
Avg. GF gross rent Occupancy
Thousand V
ND
/m²/
mth
%
0
20
40
60
80
100
0
100
200
300
400
500
Grade A Grade B Grade C
%
Thousand V
ND
/m²/
mth
Avg. gross rent Occupancy
QMR Brief – Da Nang
Source: Savills Research & Consultancy
Source: Savills Research & Consultancy
Source: Savills Research & Consultancy
CONDOTEL: SLOWER MARKET
A total of 14 projects supplied condotel stock. No new projects and next
phase launched. Ngu Hanh Son district led with 52% of supply. From
2019 onwards, 16 future projects will come online.
In 2H/2018, the market-wide absorption rate increased 9 ppts QoQ due
to limited primary supply. The primary price ranged from US$1,800/m2
- US$3,800/m2.
APARTMENT: NO NEW PROJECTS
Total apartment stock was over 5,200 units from 20 projects. In 2019,
more than 900 units will enter from two projects.
The next phases of three projects provided approximately 70 units to
the market. Son Tra continued to lead to the primary market with 82%
share.
In 2H/2018, the average absorption rate was 71% and the average
asking price was US$1,500/m², stable compared to the first six months.
SECOND-HOME VILLA: LIMITED NEW SUPPLY
Total villa stock was from 16 projects. Ngu Hanh Son district was the
largest supplier, representing a 91% share from 13 projects. In 2019, 45
dwellings will come online.
Limited new supply and stable demand resulted in market-wide high
absorption to date. Developer reputation, guaranteed returns and beach
proximity were key success drivers.
FIGURE 5
FIGURE 6
0
500
1,000
1,500
2,000
2,500
Son Tra Hai Chau Thanh Khe Ngu Hanh Son
Units
Primary Stock Secondary Stock
FIGURE 4
0
1,000
2,000
3,000
4,000
Ngu Hanh Son Son Tra Hai Chau
Unit
Primary stock Secondary stock
91%
9%
Ngu Hanh Son
Son Tra
QMR Brief – Da Nang
QMR Brief – Da Nang
QMR Brief – Da Nang
QMR Brief – Da Nang