Hai Phong is the 'bright spot' of the real estate market?

Many competitive segments, attractive to investors

According to the report of the Vietnam Association of Realtors (VARs), since the beginning of the second quarter, the Hai Phong real estate market has shown many clear signs of improvement with an increasing number of successful transactions and a slight increase in selling prices in some segments. Notably, apartments led the transaction volume with some projects almost sold out, with selling prices increasing by 5% compared to the first quarter of 2023.

Of which, about 70% of the supply is luxury apartments from apartment projects in Le Chan district, with an average primary price of about VND48 million/m2, up 4.3% quarter-on-quarter, equal to the same period last year, 8% lower than the average primary apartment price in Hanoi.

Hai Phong is a bright spot in the real estate market 1 — Hai Phong real estate market has shown many positive signs. (Photo: HA)

Prices of suburban land and commercial housing under VND2 billion also increased by 5% - 7% with hundreds of transactions made in June. Similarly, prices of low-rise products began to increase by about 5%.

Hai Phong also strives to develop 1.5 million square meters of social housing, equivalent to about 20,794 apartments, in the 2021-2025 period.

Of which, rental housing strives to reach 300,000 m2 of floor space, equivalent to about 4,158 apartments; worker accommodation strives to reach more than 8,208 m2 of floor space, equivalent to 210 apartments.

The report of the Ministry of Construction also pointed out that in the first 6 months of 2023 alone, Hai Phong is the leading locality in the number of low-cost housing projects starting construction. Of which, 4 social housing projects with 6,707 units; 1 worker housing project with 2,538 units.

Thus, with this program, if social housing projects are implemented on schedule, by the end of 2025, Hai Phong City will have a social housing fund of at least 12,600 units and could reach 20,000 by 2026.

Regarding tourism and resort real estate, many projects that have been put into operation have recorded high occupancy rates. Projects that are open for sale have completed the procedures for signing sales contracts, are progressing well, and have also recorded a steady volume of transactions.

Industrial real estate, in the first 6 months of 2023, Hai Phong established 3 industrial clusters with a scale of 150 hectares. Many investment projects in Hai Phong have expanded their supply chains, forming large-scale industry linkage chains.

What advantages does Hai Phong have?

According to VARs, from the second half of 2022 until now, the real estate market has continuously declined due to many difficulties in terms of law, cash flow, interest rates, etc. However, according to experts, when the market is difficult and cash flow is disrupted, highly speculative segments will be the first to see a decline in liquidity.

On the contrary, segments that meet real housing needs and have the ability to generate flexible cash flow such as commercial real estate are less affected. They are even a “bright spot” despite the sluggish market.

Particularly in Hai Phong, in 2021, the apartment segment exploded in both quantity and quality with the appearance of a series of new and ongoing high-rise apartment buildings.

In 2022, along with the general trend of real estate nationwide, the Hai Phong market also faced many difficulties, but also recorded nearly 10,000 products for sale. Of which, more than 90% were apartments, second only to the apartment supply in Hanoi and Ho Chi Minh City.

VARs assessed that, in addition to factors of favorable business environment and rapid growth of urban infrastructure in recent years.

In the coming time, the city will also prioritize the task of planning the target of building Thuy Nguyen in association with the new administrative and political center of Hai Phong city. Along with that, establishing a district administrative unit in An Duong district and adjusting the administrative boundaries to expand Hong Bang district. This will be a promising opportunity to attract a series of investment waves. From there, the Hai Phong real estate market will break out, develop vibrantly and healthily.

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