Da Nang Apartment Presale Prices Jump as New Supply Shifts to Luxury Units

Da Nang’s apartment market is increasingly centered on high-end and luxury projects, pushing prices higher even as sales show signs of slowing amid high borrowing costs. All newly launched units were in the luxury segment, and presale prices posted double-digit gains, Vietnamese media reported Thursday, citing industry data.

CBRE said 100% of apartments newly introduced in Da Nang in the first quarter were luxury units. The average initial presale price was about 83 million dong per square meter (about 4.67 million won), up about 12% from a year earlier. A report by Vietnam’s Ministry of Construction put the city’s average presale price at about 91 million dong per square meter (about 5.12 million won), up about 10%, attributing the rise to expanding luxury supply and price adjustments in later sales phases of already-launched projects.

The shift upmarket has become more pronounced. While about 60% of last year’s new supply was in the high-end segment priced at 60 million to 120 million dong per square meter, all new supply last quarter was priced above 120 million dong per square meter. Avison Young said about 20 projects have been launched over the past two years, most in the high-end and luxury tiers. Current primary-market asking prices are about $3,570 per square meter, or above 90 million dong.

Supply is concentrated along the Han River in the Hoa Xuan and An Hai areas. Projects there posted an absorption rate of about 60%, with most buyers coming from Hanoi and Ho Chi Minh City. Still, as prices climbed, the average absorption rate for new projects has remained around 50% to 60%. Experts said absorption appears to have stalled or edged down compared with the peak late last year.

Analysts also pointed to a mismatch between supply and demand. Buyers ages 23 to 39 seeking long-term residence in Da Nang tend to prefer more affordable or mid-priced housing, but the market is dominated by high-end and luxury offerings. Duong Thuy Dung, CEO of CBRE Vietnam, said absorption is the market’s biggest challenge in a high-interest-rate environment, especially because many local buyers are investing rather than purchasing for occupancy.

New supply is expected to ease. Real estate services firm DKRA forecast 1,000 to 1,500 units will be released in the second quarter, slightly fewer than in the first quarter, with supply concentrated in the Ngu Hanh Son area, which still has room for development. DKRA said buyers are becoming more cautious and selective, and market liquidity could weaken compared with 2025.

Even so, developers’ presale prices remain elevated. Higher land and material costs, along with market pricing, are expected to keep prices near current levels. CBRE forecast Da Nang’s apartment segment will continue to grow 10% to 12% annually, citing scarce land in the city center, riverfront and coastal areas, as well as plans to open a Vietnam international financial center, establish a free trade zone and advance major infrastructure projects.

Experts said the market needs better balance across segments to avoid supply piling up in specific areas and price bands. Industry observers warned that localized oversupply could undermine buyer sentiment and confidence.

* This article has been translated by AI.

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