Hai Phong real estate prices are not high yet and still have a lot of room for growth.

On the afternoon of September 22, under the direction of the Vietnam Association of Real Estate Brokers (VARS), Hai Phong Real Estate Association (HPREA), VARS Investment Promotion and Consulting Center, VARS Tech organized the Conference "Hai Phong Real Estate: Bright Spots in Each Segment".

Speaking at the opening of the Conference, Dr. Nguyen Van Dinh - Chairman of the Vietnam Association of Realtors (VARS) said that in recent times, the efforts of the Government and ministries and branches in resolving difficulties and promoting the safe, healthy and sustainable development of the real estate market have initially shown certain effectiveness.

However, the implementation process, policy absorption and advocacy process are “different from place to place”, leading to different recovery results between localities and regions. Accordingly, the locality that holds advantages in land fund, infrastructure, investment policies will have a good competitive advantage, and the real estate market will also have the ability to recover soon.

Real Estate - Hai Phong real estate prices are not high and still have a lot of room for growth — Dr. Nguyen Van Dinh - Chairman of VARS spoke at the Conference.

From these factors, the Chairman of VARS assessed that Hai Phong is one of the rare bright spots of the real estate market in 2023 when it still maintains a certain growth rate in the context of the "frozen" market nationwide.

Specifically, Hai Phong is a city that converges potentials in marine economy , transport infrastructure, industry, services... plus the drastic implementation of key transport works and projects, so Mr. Dinh predicts that Hai Phong real estate market will soon flourish from the second quarter of 2023.

“This will also be the locality with the fastest and earliest recovery speed in real estate transactions and supply in the country, with the presence of diverse segments in many new projects,” added Dr. Nguyen Van Dinh.

5 potentials converge in "port city"

Speaking at the Conference, economic expert, Dr. Nguyen Minh Phong - Former Head of Economic Research Department, Institute for Socio-Economic Development Research said that Hai Phong is one of the 5 localities with the largest industrial scale in the country, fast economic growth rate, and synchronous and modern investment in transport infrastructure.

Hai Phong is also one of the largest economic, cultural, medical and educational centers in the Northern and Northern Coastal regions. Therefore, along with investment attraction policies, Hai Phong is considered a land with great potential for economic and social development in general and the real estate market in particular.

Sharing more clearly the great potential and prospects of each segment of the Hai Phong real estate market, Mr. Phong listed 5 outstanding factors: large land fund and abundant immigrant labor in industrial parks (IPs); real estate prices are still low and increasing slowly; planning adjustments increase the attractiveness of the market; the plan to accelerate public investment progress certainly has a positive impact on the real estate market in Hai Phong and finally, Hai Phong industrial real estate has caught the eye of many international investors, causing FDI attraction to Hai Phong to always increase over the past years.

Real estate - Hai Phong real estate prices are not high and still have a lot of room for growth (Figure 2). — Dr. Nguyen Minh Phong said that Hai Phong has many advantages in real estate development.

From the perspective of a real estate investment and development enterprise, Mr. Pham Hong Diep - Chairman of the Board of Directors of Shinec JSC, the investor of Nam Cau Kien Industrial Park, shared that in the midst of a volatile market, Hai Phong real estate is still a "bright spot" due to continuously receiving many positive signals in attracting investment.

According to the representative of this enterprise, Hai Phong has many potentials and strengths in developing industrial zones and clusters. Therefore, the local government has been focusing resources to develop the industrial real estate segment through a series of mechanisms and policies to selectively attract investment.

At the same time, Mr. Diep also proposed specific solutions to develop industrial parks and clusters; promote the management and development of industrial parks and clusters in the city.

The planning of Hai Phong city to 2030, with a vision to 2045, is to develop Hai Phong into an industrial city associated with a modern, smart, and sustainable seaport. Building and developing Hai Phong city on the basis of effectively exploiting advantages, potentials, correlations, regional linkages and international connections; to be the driving force for development of the Northern region and the whole country.

"The approval of the adjustment of the Hai Phong City Master Plan is a premise to help the Hai Phong real estate market, which has a lot of potential and strengths, make a strong breakthrough to attract domestic and international real estate investors," Mr. Diep analyzed.

Real estate value is not commensurate with potential

Sharing more clearly the positive changes of the Hai Phong real estate market, Mr. To Hung - CEO of Recbook, Head of VARS Hai Phong Representative Office said that in the third quarter of 2023, banks continued to lower interest rates, loosen lending for real estate investment, allow "debt rollover" loans from other banks, etc., partly resolved liquidity difficulties for investors, while stimulating the buying demand of investors with cash available.

Although prices have not increased much, the Hai Phong real estate market has recorded more transactions in all segments.

Surveying the liquidity of the Hai Phong real estate market in the next 3 months, Mr. Hung said that about 55% of transactions will mainly come from consumer housing and land products with a value of 1 - 3 billion; 28% with suburban products with low value from 200 - 600 million and 17% for investment products will have transactions with loss-cutting products, lower prices than the market or investment products that create cash flow but with a value of 3 - 10 billion.

“In the coming time, large-scale projects invested and developed by reputable investors promise to attract a wave of investment, leading to an increase in real estate prices in Hai Phong - which are not yet high and still have much room for growth in the future,” said Mr. To Hung.

Real estate - Hai Phong real estate prices are not high and still have a lot of room for growth (Figure 3). — Many experts say that Hai Phong real estate prices are not high and there is still much room for growth.

Speaking specifically about Hai Phong real estate prices, Mr. Le Dinh Chung - CEO of SGO Homes said that Hai Phong real estate prices are not commensurate with the potential of real estate here. In the Northern region, Hai Phong contributes to GDP only after Hanoi and Quang Ninh, but Hai Phong real estate prices are too far behind these two localities.

Therefore, with open potential, attractive investment attraction policies and low price levels, now is the golden time for investors to pour into the Hai Phong real estate market.

In response to the opinions assessing the potential of the Hai Phong real estate market, concluding the Conference, Mr. Nguyen Quang Van - Chairman of the Hai Phong Real Estate Association expressed his hope that the provincial government in the coming time will have mechanisms and policies to improve the quality of human resources, focus on applying science and technology to meet the requirements of digital transformation, transparent planning and open legal policies, perfecting institutions, legal corridors, providing information, creating all conditions for investors to come to Hai Phong.

"Although the real estate market is facing and will continue to face many difficulties, opportunities and prospects for recovery are always present for Hai Phong real estate," said Mr. Nguyen Quang Van .

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