According to DKRA Consulting’s third-quarter residential property market report for Danang, real estate liquidity remained under pressure as buyers hesitated amid high borrowing costs. In the land plot segment, primary supply reached 1,547 plots across seven projects, but newly launched plots accounted for only about 4 per cent. Just 54 plots were sold, equivalent to 4 per cent of total supply and down 16 per cent from the previous quarter.
Weak demand has begun to push prices down. Primary land prices fell about 7 per cent quarter on quarter, while secondary market prices declined by an average of 3 per cent, as some investors cut asking prices to recover cash. Developers have also stepped up incentives and offered more flexible payment terms to boost sales.
Primary land prices ranged from VND 45.6 million to VND 61.6 million (USD 1,764-2,383) per square metre in Hoi An Dong, VND 29.3 million to VND 47 million (USD 1,134-1,818) in Hoi An Tay, and VND 17.4 million to VND 26 million (USD 673-1,006) in Dien Ban Dong.
A land area in Danang City (Photo: Tam Nguyen).
Danang’s apartment market also recorded a decline in transactions. Primary supply totalled 4,385 units across 20 projects, down 14 per cent from the previous quarter, while new supply fell by nearly 40 per cent.
The market sold 2,099 apartments, down 25 per cent quarter on quarter and 24 per cent year on year. Mid-range, or Grade B, apartments accounted for 46 per cent of supply and 68 per cent of sales, with transactions concentrated mainly in newly launched projects priced at around VND 60 million to VND 70 million (USD 2,322-2,709) per square metre. Secondary prices fell by 3-5 per cent as investors using leverage faced mounting cash-flow pressures.
The market is not expected to recover quickly. In the fourth quarter, Danang is forecast to see only 50-100 newly launched land plots, alongside 500-1,000 new apartments.
DKRA Consulting said demand for land plots was unlikely to recover in the short term. Primary prices were expected to remain high, while secondary prices could fall further as borrowing costs and the need to recoup capital weighed on sellers. Apartment demand was also expected to remain subdued amid high interest rates and tighter credit controls. The market may improve in the fourth quarter, but the recovery is expected to be modest, with no significant short-term rebound.
In HCM City and neighbouring areas, demand weakened even more sharply. Primary apartment supply in the third quarter exceeded 13,200 units, down 31 per cent from the previous quarter, with HCM City accounting for about 94 per cent. More than 4,000 new units were launched, but sales plunged 66 per cent from the second quarter as buyers adopted a wait-and-see approach amid high interest rates and tighter controls on real estate lending.
With liquidity weak, developers have relied on sales incentives to support buyers rather than making steep cuts to listed prices. “Most developers continue to strengthen incentives, including discounts for scheduled or early payments, and extend principal and interest grace periods,” the report said. These measures indirectly lower effective primary prices at individual projects in an effort to improve market liquidity.
In the land plot segment across HCM City and neighbouring areas, primary supply increased by 1 per cent, but about 95 per cent came from projects launched previously. New supply fell 30 per cent, while sales dropped by around 66 per cent from the second quarter.
In the fourth quarter, the market is expected to see 200-300 newly launched land plots and 7,000-10,000 new apartments, concentrated in eastern and southern HCM City and the former Binh Duong Province. Demand could improve towards year-end as housing needs rise, but DKRA Consulting said a sharp rebound was unlikely in the short term while buyers remained under pressure from high interest rates.
Speaking to Dantri, Le Hoang Lan Nhu Ngoc, senior director and head of strategic consulting at Cushman & Wakefield Vietnam, said there was not yet enough evidence to conclude that the apartment market was entering a widespread price-cutting cycle.
With prices in central areas already exceeding VND 100 million (USD 3,869) per square metre, developers face pressure from land costs, site clearance, borrowing expenses, labour, building materials and handover standards, making public cuts to listed prices difficult.
However, actual transaction prices could continue to adjust through sales incentives. Rather than directly lowering asking prices, developers are increasingly offering larger discounts, interest-rate support, extended grace periods and lower initial payment requirements to make purchases more affordable. This amounts to a form of “technical price adjustment”, allowing companies to stimulate demand while maintaining listed prices.
Looking ahead, purchasing power is expected to depend heavily on interest-rate movements. With floating rates at 12-14 per cent, many owner-occupiers are delaying decisions, waiting for more affordable borrowing costs and prioritising projects within their financial means.
It remains too early to conclude that the market has entered a broad-based price decline. However, experts say the sector is undergoing a process of market selection, with properties priced beyond the reach of genuine housing demand likely to face greater pressure. Future price movements will depend on interest rates, the pace at which new supply is absorbed and the confidence of homebuyers purchasing for their own use.
