Following its merger with Quang Nam province last July, Danang is gradually shaping a multi-polar urban development model with several new growth corridors, while the city’s southern axis is expected to play a central role in the new urban structure.

A corner of the southern part of Danang, central Vietnam. Photo by The Investor/Thanh Van.

Capital flows shift southward

According to market data, the property market of Danang, a central Vietnam hub, remained relatively stable in the first quarter of 2026, while investment flows increasingly shifted toward neighboring areas.

Following the mergers and expansions of city/provincial administrative boundaries across Vietnam last July, Danang has emerged as one of the biggest beneficiaries thanks to its enlarged land bank and development space.

The combination of the city’s modern urban brand with extensive land reserves in adjacent areas has created new growth potential for the real estate market.

Vo Hong Thang, deputy CEO in charge of DKRA Consulting and investment director of DKRA Group, said investment capital was increasingly flowing into former Quang Nam province areas, particularly Dien Ban, the Co Co River corridor and Hoi An, due to several structural advantages.

First, the southern corridor still offers abundant land supply and relatively affordable prices compared with central Danang, where urban development is already relatively complete and land prices have risen sharply.

“This creates room for both project development and long-term growth,” Thang said.

He added that urban planning and infrastructure development were also major drivers.

As Danang expands southward, the area is expected to become a natural extension of the city, benefiting from priority infrastructure investment and the development of new residential zones.

The southern corridor also enjoys strong regional connectivity as it lies along the key Da Nang-Hoi An axis, which is linked to major tourism and service corridors, further enhancing the attractiveness of local real estate.

Meanwhile, Nguyen Cuu Loan, vice chairman and secretary general of the Danang Urban Development Planning Association, said that following the expansion of administrative boundaries, Danang was no longer a single-center coastal city but was transforming into a multi-layered urban model spanning coastal, lowland, midland and mountainous areas.

The expanded development space has opened up significant opportunities for the property market as the city seeks investment for a series of new urban projects, particularly in southern areas and development corridors, with total investment valued at billions of dollars.

Large-scale urban projects accelerate

Danang is currently promoting a number of large-scale urban projects, particularly in the southern area.

Among the most notable is the mixed-use urban area south of Nguyen Tat Thanh Boulevard, with total investment exceeding VND17.79 trillion ($675.24 million) and covering nearly 296 hectares.

Other projects include the Hoa Xuan sports, entertainment and commercial complex with investment capital of more than VND4.66 trillion, the Truong Giang Riverside Urban Area project worth over VND1.52 trillion, the Chu Lai Urban Area project valued at nearly VND15.27 trillion, the Dien Duong mixed-use urban area covering around 221 hectares, the Dong Duy Xuyen-Thang Binh smart urban area and several urban developments along the Thu Bon River.

New growth pole taking shape

From a business perspective, Ha Bich Nghi, director of Chau Au Real Estate Company, said the southern axis was not merely an expansion zone but would serve as the “heart” of Danang’s emerging multi-polar urban structure.

Her assessment is based on the prime ministerial Decision No. 628/QD-TTg approving Danang’s master plan through 2050 with a vision to 2075.

Under the plan, urban space will expand to integrate Danang, Dien Ban and Hoi An into a unified coastal urban cluster while also strengthening links with Tam Ky, Nui Thanh, Chu Lai Airport and Quang Nam’s seaport system.

Within this structure, the southern corridor is expected to become the key connection point between central Danang and the Hoi An-northern Quang Nam coastal belt.

In particular, southeastern Danang is emerging as a major destination for investment flows thanks to infrastructure projects including the upgraded Danang-Hoi An tourism corridor, the Co Co River restoration project and the planned Danang-Hoi An-Chu Lai urban railway line spanning more than 103 kilometers from Terminal T1 of Danang International Airport to Chu Lai Airport.

According to Nghi, the railway project could become one of the strongest infrastructure drivers for real estate values ever seen in the Danang market.

“Market figures already confirm this trend,” she said.

“Over recent years, property prices in Ngu Hanh Son have risen 48%, Son Tra 32%, former Dien Ban 22%, and Hoi An around 36% - all areas located along the Danang-Hoi An corridor,” she added.

However, Nghi said current price increases still did not fully reflect the area’s long-term potential as key supporting infrastructure remained incomplete.

Thang shared a similar view, saying the urban-tourism linkage between Danang and Hoi An was becoming increasingly important in boosting the attractiveness of southern Da Nang real estate.

Danang serves as an economic, infrastructure and services hub, while Hoi An functions as a tourism and resort destination, he said.

At the same time, the development of coastal tourism and urban transport corridors is shortening travel times and generating additional value for real estate projects located along these routes.

As regional connectivity improves, southern Danang could evolve into a multi-functional urban zone combining residential, tourism, commercial and service activities, increasing long-term property appeal and development potential.

“However, the extent of the impact will depend on the progress of infrastructure development and the effectiveness of actual implementation,” Thang said.

“If these factors are carried out in a synchronized manner, southern Danang will have substantial room for growth. Otherwise, if regional integration remains largely conceptual, the expected benefits may not fully materialize,” he added.

Loan said the city’s post-merger development strategy should transition toward a multi-polar urban structure with five new growth poles.

Under the model, the Hai Chau-Son Tra-Ngu Hanh Son area would remain the administrative, financial and high-end services center, while Hoa Lien-Hoa Nhon would develop urban areas attached to high-tech industries, supporting industries and logistics hubs.

The Hoi An-Dien Ban-Thang An corridor would become a tourism, heritage and creative urban zone, alongside a mountainous ecological urban cluster and an international logistics and trade hub linked to Lien Chieu, Tien Sa and Chu Lai.

“These growth poles need to be connected through strategic infrastructure systems including expressways, urban railways and logistics ring roads, while functions should be allocated appropriately to avoid overlap and create broader regional spillover effects,” Loan said.

The Investor will today (Wednesday, May 13) host a seminar titled: “Danang real estate: Long-term value investment & the southern urban flow” in the central city.

The event aims to contribute to the implementation of the Danang People’s Council's Resolution No. 06/NQ-HĐND dated February 27, 2026, while analyzing shifts in investment capital flows and identifying strategic growth areas.

The seminar will bring together leaders from central government agencies and ministries, parliament delegates, Danang government officials, as well as economic experts, consulting organizations, real estate companies, and investors.