CENTRAL VIETNAM MARKET UPDATE: A COMPELLING GROWTH STORY
Central Vietnam is emerging as one of Vietnam’s most compelling real estate stories, fueled by rapid infrastructure development, a resurgence in tourism, and growing investor interest. Danang City, Quang Binh Province and Binh Dinh Province are at the forefront, showing strong demand across residential and land segments despite challenges around affordability and market unevenness still persist.
A Region Built on Connectivity
Central Vietnam has long benefited from its strategic location and its interconnected web of highways, railways, seaports, and airports. Danang, in particular, has turned its connectivity into an economic driver, welcoming 3.2 million international visitors in the first nine months of 2024—double the figure from the previous year. Domestic tourism is just as robust, with arrivals surging to 5.5 million, up fivefold from 2023. These gains, paired with a steady flow of public investment (4.4 trillion VND in infrastructure spending through October), are laying the foundation for sustained real estate growth.
Danang International Airport is closing out 2024 with strong performance metrics and ambitious plans to secure its place as a leading aviation hub in Southeast Asia. The airport handled an estimated 13.5 million passengers, reaching 94% of its annual target and signaling a near full recovery from the disruptions of recent years. Domestic passenger numbers climbed to over 7.2 million, achieving 96% of the year’s plan, while international arrivals exceeded 6.2 million, or 92% of the target. Cargo operations outperformed significantly, with total throughput surpassing 32,400 tons—19% above the year’s forecast. International cargo drove much of this growth, rising by 30%, while domestic cargo expanded by 12%. In total, the airport handled more than 81,100 commercial flights, achieving 95% of its annual target.
Adding to its momentum, Danang International Airport received global recognition in 2024 that cements its position as a top-tier facility. Its international terminal (T2) earned a prestigious 5-star rating from Skytrax, and the airport was listed among the “Top 100 Best Airports in the World” and the “Top 10 Most Improved Airports.” Perhaps the most ambitious development is the planned expansion of Terminal 1 (T1). Backed by an investment of 5 trillion VND, this project will increase T1’s capacity to 10 million passengers annually, boosting the airport’s total passenger handling capability to 14 million per year when combined with the existing T2 terminal and the expanded T1 from between 2026 and 2028.
Condominiums Are Leading The Charge
Batdongsan’s latest report shows that the condominium market is seeing the sharpest gains in Central Vietnam. Demand is skyrocketing, particularly in smaller cities that were previously overlooked by both investors and buyers. In Quang Binh, searches for apartments jumped an astonishing 516% in Q3 2024 compared to earlier in the year. In Thua Thien Hue, interest rose 65%, while Danang and Binh Dinh posted increases of 45% and 23%, respectively. Rising demand is driving prices higher. In Danang, the average asking price for condominiums climbed 32% between Q1 2022 and Q3 2024, while Quang Binh outpaced that with a 41% gain.
Interest in land plots and townhouses is also heating up, though the recovery has been more uneven. Danang remains the strongest performer, with land prices rising 12% from Q1 2023, reaching 45 million VND per square meter by Q3 2024. Townhouses in provinces like Phu Yen and Binh Dinh have also seen sharp increases, with prices across the region climbing by as much as 53% year-on-year in some areas.
Legal transparency and construction quality have emerged as the most important factors for buyers, according to Batdongsan’s 2024 real estate sentiment survey. Seventy percent of respondents identified legal clarity as their top concern, while 51% ranked build quality as critical. This shift reflects a maturing market, where buyers and investors are demanding higher standards and more reliable returns. For developers, it is a call to adapt.
The Virtuous Cycle of Danang’s Growth
Danang continues to dominate Central Vietnam’s economic story, with the city posting GRDP growth of 6.47% in the first nine months of 2024. Industrial output expanded 5.99% during the same period, complementing a booming tourism sector that has drawn millions of visitors. Public infrastructure spending, which totals trillions of VND annually, is transforming urban connectivity and attracting both businesses and residents to the area.
That said, affordability remains a key concern in Central Vietnam as property prices climb, particularly in cities like Danang where growth has outpaced income levels. At the same time, smaller markets such as Binh Dinh and Quang Binh, while promising, are still finding their footing, with infrastructure and buyer demand unevenly distributed across provinces. For further real estate investment insights on the latest hotspots and branded residences in Danang, reach our Residential Services team at [email protected]
