The central city of Da Nang has seen signs of recovery in the real estate market since late 2013 with many non-resident investors eying low-cost products, the Saigon Times Daily reported.

Last month, Dat Xanh Mien Trung Joint Stock Company launched the sale of Vision City project with 100 land lots priced at 215 million VND each and measured at 87.5 square metres each.

Tran Ngoc Thanh, General Director of Dat Xanh Mien Trung Company, was quoted as saying that customers from Hanoi accounted for up to 60 percent of total clientele. According to industry insiders, investors from Hanoi and other provinces have returned to Da Nang.

A representative of Cuong Hung Thinh Group Joint Stock Company said Hanoi customers have engaged in more transactions through its trading centre since early this year. They have purchased a lot of land lots, focusing on cheap products at one billion VND each or lower.

Thanh of Dat Xanh Mien Trung Company noted the number of investors in Da Nang has picked up following improvements in Hanoi and Ho Chi Minh City. For instance, the number of customers from Hanoi accounted for 10 percent of total transactions in the city in 2010 and then rose to 20 percent in 2013 and 50 percent early this year.

Notably, the number of Hanoi customers accounted for around 50 percent of total transactions but they snapped up 65 percent of available products, meaning each client bought more than 1.3 products, he said.

Explaining the recovery, Thanh said property prices in Da Nang have dropped to their lowest in years.

With recent policies such as home credit loosening and lending rate cuts, buyers have jumped back into the market. When cash flows in the economy rise, the demand for property will bounce back. This is the rule of the market, he said.

According to the Daily, Duong Thuy Dung, deputy head of market research and consulting at CBRE Vietnam, said the number of customers seeking consulting services for seaside holiday properties in the first quarter surged three times against the same period last year.-VNA