April 2023 Q en Da Nang savills Macro Infrastructure Tourism PropertySpotlight Da Nang KEY FINDINGS Da Nang Macroeconomics In 2022, Da Nang’s GRDP growth reached 14%, exceeding the national average of 8% It had the third largest GRDP growth in the country, after Khanh Hoa (21%) and Bac Giang (19%). Increased export value, reduced unemployment, and tourism improvement supported solid economic performance. In 2022, the accommodation and tourism revenue in Da Nang was VND 8.9 trillion, increasing by 380% YoY and 2.5% compared to 2019. Infrastructure Boost Da Nang has one of Viet Nam's key transportation hubs, including international airports, deep water seaports, the North-South railway, and an extensive road network. Da Nang International Airport is Viet Nam’s third largest after Tan Son Nhat (HCMC) and Noi Bai (Ha Noi). There are plans to increase its annual capacity to 25 million passengers by 2030 and 30 million by 2050, up from the current 15 million. The city has plans for seven inland waterway tourism routes by 2025 and will create a fleet of high-speed boats, yachts, and floating restaurants and hotels that will utilise green energy. These projects will diversify Da Nang’s tourism offering while supporting sustainable growth. Tourism Rebound In 2022, Da Nang had 7.8 million visitors, increasing by 224% YoY; of which, there were a million international visitors, increasing by 772% YoY. Domestic visitors were the highest in five years at 6.8 million, increasing by 196% YoY. Although international visitors increased, they remain below 4.8 million in 2018 and 5.2 million in 2019. A key driver in 2023 will be the return of Chinese visitors. The major source market will resume tours to Viet Nam on 15 March 2023, which creates a healthy outlook for hospitality demand in the coastal city. April 2028 - Media Release savills comvnSpotlight Da Nang Stock Growth Hotel stock of 15,685 rooms came from 117 project: ten hotels remain temporarily closed. ive-star had 61% of room stock. Only Coastal villa stock came from 18 projects, mostly in Ngu Hanh Son District. In 2022, stock increased by 49% YoY, and primary stock was the highest in 12 years due to large new supply. The new supply reflected improved developer sentiment after no new supply in 2020 and 2021, Improved Performance In H2/2022, hotel ARR reached VND 1.8 million/room/night, rising by 60% YoY. Occupancy in the second half equalled H2/2019 at 59%, but 2022 occupancy of 48% was still -13 pts lower than in 2019. The average villa primary asking price was VND 164 million/m? land area (LA), increasing by 134% YoY with the entry of new, expensive villas. Sales were the highest since 2016. Good location, strong marketing strategies, and developer reputation drove performance. Ngu Hanh Son District had 100% of sales. International Operators International operators managed 15 four and five-star hotels or 26% of stock. Accor is the largest international operator in Da Nang with brands such as Pullman, Novotel, and Grand Mercure. in H2/2022, internationally branded projects had ARRs 40% higher and 8 ppts higher occupancy than domestic and self-managed projects. For coastal villas, hotel brands like Furama, Accor, InterContinental Hotels Group (IHG), Hyatt and Fusion dominate with six of 18 projects. Since 2018, average secondary prices of branded residences have increased by 14% per annum (pa), while non-branded properties rose by 10% pa, Brand awareness means branded properties have access toa larger buyer pool. Outlook There are 39 future hotel projects, including JW Marriott Da Nang Resort, Wyndham Soleil, Vinpearl Lang Van, and Crowne Plaza Ba Na Hills. Many of these projects are expected in the long term, and their entry will correspond with forecast increased demand and market recovery. Future coastal villa supply will come from 15 projects. Ngu Hanh Son District will be the top supplier with a 559% share. Given the positive outlook for the Vietnamese economy and expected tourism recovery, the coastal villa market may improve. April 2028 - Media Release savills comvnSpotlight Da Nang Da Nang Macroeconomic Gory ‘pr an par by yo lon SH Da Nang Demographic Gorey ob ion ‘ep ada syo snag Foo Deity yoo 20a’) April 2023 - Media Release savills comvnDa Nang & Central Infrastructure Map ~ a TEE... ie ae Vigt Nam Ccampuchia stg Pca Pénd ‘ogany Central April 2023 - Media Release savills comvnThank you for your interest in our report. Do you need more visual data? $22M, our new service line, delivers interactive charts, maps, and visual displays of these insights and metrics that you can interact with, query, and select quickly the data you need to inform your strategy. OFFICE es, VIETNAM MAC! 7 aren Dig Or do you need deeper insights? 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