"Big Waves" Poured into Northwestern Da Nang

4:59:22 PM | 8/3/2018

Real estate in North West Da Nang is seeing new opportunities as a series of projects are being implemented in this area.

Recently, at a meeting between the Ministry of Transport and Da Nang People's Committee, Mr Truong Quang Nghia, Secretary of Da Nang City Party Committee, talked about the importance of the port of Lien Chieu to Da Nang. There is a connection between the railway, the road and the airport. Behind Lien Chieu Port are all the industrial zones of Da Nang, so he requested the Ministry of Transport to evaluate Lien Chieu Port project.

Minister Nguyen Van The agreed with the viewpoint of the Da Nang Party Committee Secretary on the importance of the Lien Chieu Port project and urged the organisation of the appraisal and assigned Da Nang city authority to be the investor of Lien Chieu Port project.

According to experts, the investment in the construction of Lien Chieu Port to expand Da Nang port system is very necessary, in line with the planning and socio-economic development of Da Nang city, transportation and the central key economic region.

New moves
At the same time, according to the Da Nang People's Committee, the Prime Minister has approved the project in the form of Public-Private Partnership (PPP).
The Ministry of Transport has sent a letter to the Prime Minister for approval of investment of the first phase of the project with a budget of VND3,393 billion in the form of PPP. The 2nd phase, worth VND 2,371 billion, will be implemented when the State completes balance capital.

In addition to the key port projects and the station relocation, according to many experts, the western and northern areas of Da Nang hold many natural advantages. The northern part of the city is surrounded by high mountains with the Hai Van Pass named the "the most marvellous wonder." The West is Ba Na tourism area rising to a height of over 1,000m with the cable car system holding four world records.

And the North West is the estuary of the Cu De River, which is blessed with majestic elements: rivers, mountains and sea with natural landscapes that still have pristine beauty.

To develop this area, Da Nang People's Committee has approved more than VND46 billion of investment in tourism development in seven key beaches including Xuan Ha, Phu Loc, Ho Tung Mau, Nam Xuan Thieu and Nam O, a total length of nearly 9km.

Then at the end of January, the Mikazuki Hotel Group from Japan planned to invest more than US$110 million to build a water park and 5-star hotel in Xuan Thieu tourism area on Nguyen Tat Thanh street next to the beach.

The project covers an area of 11.5 hectares, aiming to develop a serviced complex including five star hotels, a water park, a game park and a food court. This is considered to be the largest foreign investment in real estate in Da Nang tourism in 2017, the year marked the APEC international event opening a huge opportunity to attract investment in the locality.

In particular, it is expected that in 2018, the Nguyen Tat Thanh route extending into the Golden Hills project will be completed. The formation of the extended Nguyen Tat Thanh route contributes to narrowing the distance from the city centre to the northwest from 23km to about 11km.

This is also the main road connecting the North West gateway of Da Nang city with the arterial roads; with the Golden Hills Ecological Urban Area, Da Nang Hi-Tech Park, IT Park, etc. Together with the fish bone and intra-regional roads, it will contribute to the socio-economic development of the North West of Da Nang City.

These projects will create a motive force for economic development, attracting a large number of workers to settle down and having a positive impact on the real estate market in the coming time.

Prospect of changing the whole area
"Northwestern Da Nang is considered favourable for the development of tourism areas, ecological urban areas and hi-tech projects, but has not been fully exploited. Therefore, the trillion Vietnamese Dong projects deployed in the past time will promote the strong development of the region," said Mr Do Minh Duong, a real estate expert.

Under the impact of this infrastructure, land price in Lien Chieu district has increased continuously in the past, in some places increased 2-3 times and there is no sign of cooling down. However, unlike previous land fevers in Da Nang, land fever in Lien Chieu is now considered to be more "real".

So in the future, how will this market evolve?
According to Ms Duong Thuy Dung, head of the CBRE Research Division, the supply of apartments and land in Da Nang has increased sharply, but still failed to meet the rapid population growth in five recent years.

As a result, the trend towards new growth areas such as the North West is expected to provide a great opportunity for real estate investors looking to catch the trend in this region.

Sharing the same opinion, some experts said, the promotion of urban planning, industrial parks, high tech, information technology zones are the good signals that the Northwestern Da Nang in 2018 will continue to flourish, especially ground projects. However, in order to improve profitability when investing in land, experts said that buyers should select projects of reputable investors, beautiful location and legal clarity.