The price of shophouse in Da Nang decreased, selling at a loss, sluggish and difficult to rent. Should buy shophouse Da Nang?

08/04/2022 07:33 GMT+7

Shophouse used to be popular with investors, having the benefit of being able to live, do business or rent space.

But in fact, over the past time, many shophoue projects in Da Nang have been absent from tenants, sluggish. Especially since the outbreak of the Covid-19 epidemic, this type has become more and more quiet.

At Kim Long City project (Lien Chieu district), a whole row of shophouses is located on the prime road Hoang Thi Loan, Nguyen Sinh Sac street opposite the administrative center of Lien Chieu district but is still vacant. There are only a few apartments here that have been rented for fresh flowers and real estate offices.

Shophouse row of Kim Long City project, owns the largest street frontage in Lien Chieu district but is currently vacant and has no tenants.

The population living here is very sparse. Behind the new shophouse project, there are only a few houses under construction. The land is currently used by people to graze cows.

According to a broker here, the shophouses on Nguyen Sinh Sac street have a rental price of just over 20 million VND, while the value of these shophouses is about 13 billion VND/unit. Although the rental price dropped, there were no tenants.

Many shophouses are hanging signs for rent or for sale

It is worth mentioning that although it is not possible to rent out, the selling price is currently increasing compared to last year. Explaining this, the broker said: “Most of them are selling because it’s hard to find customers for rent. At this time, the real estate market is bustling, so shophouses also have transactions and buyers for investment. The selling price is currently about 13 billion VND/unit, returning to the peak of 2019. However, the apartments for sale are cheaper, about 12.5 billion VND, only people will buy them right away”, this person said.

The project is located in a prime location but the residents here are still sparse

Around the shophouse project, people graze cows

Because it has been vacant for a long time, it has begun to degrade, mossy, overgrown grass looks very disheveled. Not far away, located in a prime location, right next to Nguyen Tat Thanh beach, but a series of shophouses here are also “closed and bolted”.

Also located on Nguyen Sinh Sac street, right next to the sea, but a series of shophouses “closed and bolted”, outside the grass is overgrown.

Shophouses have been vacant for a long time, many of them use corrugated iron to surround the outside

Shophouse with overgrown grass

Many apartments began to deteriorate, mossy, and sloppy

For rent for a long time but still no customers

In the downtown area, the situation is not better. Halla Jade shophouse area (Hai Chau district) is located next to Lotte Mart supermarket, next to the park, but now also hangs a lot of rental signs. The rental price for a 3-storey apartment here ranges from 30-40 million VND/month. Meanwhile, in 2019, the rental price sometimes reaches 80 million VND/month.

Halla Jade shophouse area (Hai Chau district), although located in the center, is quite bustling, but it also falls into a stagnant situation, with many signs for rent.

Many apartments because there are no tenants, have lived for a long time, so they also let the grass grow luxuriantly, and construction materials are scattered right in front of the door.

According to experts, the shophouse type has not been able to recover because the rent is high and is located in new urban areas, sparsely populated, without built-in utilities, so tenants are not interested. Therefore, using financial leverage to invest in shophouse will be very risky. Buyers need to consider investing in a real estate location that is suitable for their financial ability.

Dieu Thuy