Thac Gian Residential Area in the central city of Danang. The city remains an attractive real estate market to both local and foreign investors amid the global economic crisis.
"While real estate market development has been sluggish, investors have continued paying special attention to Danang," Lam Quang Minh, director of the Danang Investment Promotion Centre, told a seminar in Hanoi yesterday.
"Danang property prices are much lower than those in Hanoi and Ho Chi Minh City due to more investment incentives, which the coastal city has endeavoured to promote via its seminar in the capital," Minh said.
"While the economic crisis has affected the property market, construction has managed to continue according to plan," said Phung Tan Viet, deputy chairman of the People's Committee of Danang.
Current advantages imbedded in the Danang property market include low land prices, the development of its economic and tourism sectors, as well as its upgraded infrastructure and excellent geographical position, according to a representative from Savill Vietnam, a property-consulting firm.
At present, Danang had 56 ongoing property projects with a total investment of $3.5 billion, 30 per cent of which came from foreign investments, Viet said.
"Although the property market in Danang also froze, it was only temporarily," said Dam Quang Tuan, chairman of the Danang Real Estate Association.
"The association expects the property market in the city to warm up in the near future because of macro economic policies having good effects across economic sectors," Tuan said.
To warm up the property market, enterprises expected banks to provide loans toward property projects, he explained, adding that customers and enterprises should closely co-operate in ensuring on schedule repayments.