Danang, located on the coast of central Vietnam and between Hanoi and Ho Chi Minh City, is the third-largest city in the country. Famous for its beautiful beaches and its history as a French colonial port, as well as its proximity to many natural and cultural destinations, Danang is the tourist capital of central Vietnam.
It is also considered one of the 20 “cleanest cities in the world” and the “most liveable city” in Vietnam, according to Savills in its Danang market report in September 2016.
In 1Q2017, Danang welcomed 1.3 million visitors, a 30% y-o-y increase from 1Q2016. For the whole of 2016, Danang received 5.6 million tourists, and the figure is projected to hit 6.3 million this year.
Natural and cultural attractions
Besides its beautiful coastline, Danang is also shaping up to be a “golf capital”. It has at least four golf courses designed by some of golf’s greatest names: the Montgomerie Links by Scottish professional golfer and former European Ryder Cup captain Colin Montgomerie; the 18-hole Dunes course, designed by Australian golf legend Greg Norman at the Danang Golf Club; Laguna Lang Co golf course at Banyan Tree’s luxury resort, designed by English professional golfer Nick Faldo; and the latest, a mountain golf course at the picturesque Ba Na Hills, designed by former No 1 world champion and English professional golfer Luke Donald.
Within a 30-minute to three-hour drive of Danang are three Unesco World Heritage sites — Hue to the north, Hoi An to the south and My Son to the southwest. Hoi An’s Old Town is recognised as a well-preserved example of a Southeast Asian trading port dating back to the 15th century.
Hue was the seat of the Nguyen Dynasty and the national capital from 1802 to 1945. Major attractions include its 19th-century citadel with its palaces and shrines surrounding the imperial city. My Son is famous for the ruins of one of the foremost Hindu temple complexes in Southeast Asia. The buildings were destroyed by US carpet bombing during the US-Vietnam War.
InterContinental Danang Sun Peninsula Resort is a luxury hillside resort and spa that overlooks a bay and the picturesque Son Tra Peninsula
Connectivity
Danang has seen particularly strong growth in tourism in recent years, owing to the rapid growth in the number of direct flights from other cities across Asia, says Neil MacGregor, managing director of Savills Vietnam.
With Danang hosting the Asia-Pacific Economic Cooperation (Apec) Summit in October, efforts have been made to upgrade its infrastructure. A US$154 million ($215.3 million) new international terminal at Da Nang International Airport opened at end- April. Additional upgrading of the airport will bring total capacity to 13 million passengers by 2020.
According to GHC Asia, the number of direct flights from Hong Kong to Danang has soared since Cathay Dragon launched the first thrice-weekly service in 2013, with frequency increased to daily flights in 2015. Carriers Hong Kong Express and Jetstar Pacific also currently operate three flights a week on this route. Meanwhile, Bangkok Airways and AirAsia operate daily flights between Danang and Bangkok, while VietJet Air recently commenced flights between Danang and Seoul.
Today, Danang has direct flights from Cambodia, China, Hong Kong, Japan, Macau, Malaysia, Russia, Singapore, South Korea, Taiwan and Thailand, operated by 20 international carriers, says GHC Asia.
Other infrastructural works underway include the construction of a 1,500-seat, 3,922 sq m international convention centre, a US$10.9 million project to improve 34 major roads in the city and a US$2.25 million upgrade to facilities in Danang’s Thanh Nien Park. The convention centre could be a major boon for Danang as a destination for MICE (meetings, incentives, conferences and events).
Hotels
Apec 2017 has spurred a rush of investments, and it could lead to an increase in condotel performance, notes Savills Vietnam in its 4Q2016 Danang market report.
In 2015, there were 73 three- to five-star hotels with 7,485 rooms. Of these, seven of 11 five-star hotels and four of 14 four-star hotels were managed by international operators. “There remains room for increased international operator presence,” notes Savills. Accor Hotels and Resorts Group is the largest international operator in Danang, managing 944 rooms.
Major upcoming hospitality projects include Crowne Plaza Phase 2, Hilton Danang Hotel and Four Points by Sheraton. The first phase of HOIANA, a US$4 billion integrated tourism and leisure development located south of Hoi An, is scheduled for completion in 1Q2019. The project comprises a world-class casino, a resort by Rosewood Hotels & Resorts, a 445-room hotel and 200 condos, as well as a championship golf course by Robert Trent Jones II. HOIANA will be the project that launches the formation of a hospitality strip from Danang to Hoi An, says Savills.
Scheduled to open in 2Q2018, Wyndham Soleil Danang will have four condotel towers of up to 57 storeys.It will be the tallest hotel-condotel complex in Danang when completed.
Second-homes market
Danang is a pioneer in the market for luxury coastal homes — and is second to Nha Trang in total stock, with 1,199 villas and 3,367 apartments. According to Savills, more than 80% of purchasers are from Hanoi, who are attracted by the wide variety of products, completed infrastructure, bright tourism prospects and sales policies, as well as Danang’s image as a young, dynamic and green city.
The projects include Ba Na Hill Resort & Residence; Ocean Villas at Danang Beach Resort and Danang Golf Club; Residences at Hyatt Regency; Furama Condotel; and Intercontinental Danang Villa Residence.
Upcoming large-scale projects include Soleil Da Nang, Coco Bay, Han Riverside, Ariyana Da Nang and Vinpearl Danang Ocean Resort & Villas. “A large future supply of apartments and coastal villas is expected,” says Savills.
Many of these are high-end residences that are managed by international hotel brands. Vietnamese developer PPC An Thinh Vietnam Investment and Infrastructure JSC (PPCAT) has appointed Wyndham Hotel Group as its partner for its US$446 million Wyndham Soleil Danang project.
Scheduled to open in 2Q2018, Wyndham Soleil Danang will have four condotel towers of up to 57 storeys that will contain 3,200 apartments, studios and hotel rooms. It will be the tallest hotel-condotel complex in Danang when completed.
Rental guarantee
PPCAT is offering buyers of its apartments and studios at Wyndham Soleil Danang a guaranteed return of at least 9% per annum for the first five years. Studios are 33 to 43 sq m, with one-bedroom apartments between 55 and 59 sq m and two-bedroom units between 80 and 160 sq m.
Leading Vietnamese real estate company Sun Group has many resort developments in Danang, including InterContinental Danang Sun Peninsula Resort, Sun World Ba Na Hills, Sun World Danang Wonders and Novotel Premier Han River Hotel.
Sun Group has partnered well-known names in hospitality for many of its resort projects, such as Marriott International in JW Marriott Phu Quoc Emerald Bay; Starwood Hotels & Resorts in St Regis Cham Island; and Ritz-Carlton in Phu Quoc Island’s Ritz-Carlton Resort.
In Danang, Sun Group has tied up with InterContinental Hotels Group in its InterContinental Danang Sun Peninsula Resort, a luxury hillside resort and spa overlooking a bay and the picturesque Son Tra Peninsula. It is one of two resorts under Sun Group that is designed by world-renowned architect and landscape designer Bill Bensley.
“With airport improvements underway, as well as its proximity to scenic beaches and Unesco World Heritage sites, Danang is a market poised for great growth in a country popular with world travellers,” says Barry Robinson, president and managing director of Wyndham Hotel Group for Southeast Asia and Pacific Rim. '
This article appeared in The Edge Property Pullout, Issue 780 (May 22, 2017) of The Edge Singapore