Convergence potential, opportunity to "take off"

On September 22, the real estate conference “Hai Phong: Bright spots in each segment” was officially held in Hanoi. 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 process of implementing, absorbing policies and the process of advocacy are “different in each place”, leading to different recovery results between localities and regions.

Accordingly, any locality that holds advantages in terms of land fund, infrastructure, and investment policies will have a good competitive advantage, and the real estate market will also have the ability to recover soon.

Dr. Nguyen Van Dinh, Chairman of Vietnam Real Estate Brokers Association

According to Dr. Nguyen Van Dinh, 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. With the potential of marine economy, transport infrastructure, industry, services... combined with the drastic implementation of key transport works and projects, the 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,” Dr. Nguyen Van Dinh added.

Convergence potential

Speaking at the Conference, economic expert, Dr. Nguyen Minh Phong said that Hai Phong is one of the five localities with the largest industrial scale in the country, with rapid economic growth, and a synchronous and modern investment in transport infrastructure. Hai Phong is also one of the largest economic, cultural, medical and educational centers in the Northern region and the Northern Coast. 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 Hai Phong real estate market, Dr. Nguyen Minh Phong pointed out 5 outstanding factors.

Firstly, Hai Phong has a large land fund and abundant immigrant labor resources in industrial parks (IPs).

Second, Hai Phong's real estate prices are currently low and increasing slowly.

Third, Hai Phong's planning adjustments are increasing the attractiveness of the real estate market here.

Fourth, the plan to accelerate public investment progress will certainly have a positive impact on the real estate market in Hai Phong.

Finally, Hai Phong industrial real estate has caught the eye of many international investors, causing FDI attraction in Hai Phong to always increase over the past years.

“In the near future, Hai Phong will certainly be a vibrant real estate market, attracting investors from all over the country,” Mr. Phong commented.

From the perspective of a real estate investment and development enterprise, Mr. Pham Hong Diep, Chairman of the Board of Directors of Shinec Joint Stock Company, Investor of Nam Cau Kien Industrial Park, shared that in the midst of many fluctuations in the market, Hai Phong real estate is still a "bright spot" due to continuously receiving many positive signals in attracting investment. A series of key projects have been started, from traffic works to social housing projects.

“The above results are thanks to the attention from central authorities, the city's efforts in planning and investing in construction, developing urban transport infrastructure; thanks to major projects of famous economic groups, exploiting and promoting the potential of the port city,” said Mr. Diep.

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, it has set out specific solutions to develop industrial zones and clusters; and promoted the management and development of industrial zones 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 added.

Conference scene

Trading recovers in many segments

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. The market welcomed a large number of brokers, offices, companies, and real estate service trading floors returning to the "race".

Surveying the liquidity of the Hai Phong real estate market in the next 3 months, Mr. Hung said that about 55% of transactions 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, such as the Dragon Ocean Do Son International Tourist Area Project of Geleximco Group; Royal River City Project of Newland Construction Investment Joint Stock Company and Hoang Huy Commerce Apartment Project of Hoang Huy Financial Group promise to attract a wave of investment, leading to an increase in the price level of Hai Phong real estate - which is not high yet and still has a lot of room for growth in the future,” said Mr. To Hung.

Regarding 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 city 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.

Grassland

Source: https://www.nguoiduatin.vn/bat-dong-san-hai-phong-tiem-nang-hoi-tu-co-hoi-de-cat-canh-a627815.html