Bright prospects lay ahead for Haiphong real estate market in 2019

Ha Long – Haiphong expressway is said to give a boost to Haiphong's real estate market. Photo: VNA

Do Thi Thu Hang, head of the Research and Consultancy - Advisory Services Division belonging to Savills Hanoi, told VOV Online that Haiphong’s real estate market enjoyed flourishing growth across many sectors in 2018. The low-end sector is expected to lure an additional five projects in the near future, with four coming from domestic investors and one project from investment by foreign real estate developers.

Hang went on to add that the apartment market is also predicted to welcome additional big foreign investors, while Vincity-branded apartments developed by domestic real estate giant Vingroup will be added to the city’s supply of apartments.

She noted how Haiphong has a fledgling real estate market with limited supply. The city’s apartment supply is low in comparison to that in Hanoi and Ho Chi Minh City while the majority of buyers are locals who have bought apartments to reside and rent.

This translates into huge opportunities for real estate developers who know how to ultilize their advantages in capital and construction techniques in creating housing products at reasonable prices.

Regarding luxury properties, large domestic real estate firms such as Vingroup, Sun Group and FLC Group would be able to begin high-end hotel and resort projects in the inner city and its two tourism hubs like Cat Ba island and coastal Do Son district. Meanwhile, Hilton, Nikko and Pullman would engage more in the market with five-star hotel projects in the future.

Last year, the Haiphong real estate market experienced a flourish in growth due to a number of infrastructure projects put into operation. These projects include Ha Long – Hai Phong expressway, Vu Yen I bridge that connects the Vietnam - Singapore Industrial Park in Haiphong to Vu Yen island, and Haiphong International Container Terminal (HICT).

The Haiphong market was also boosted by the city’s robust economic growth and foreign investment inflow. The northern city lured up to US$2.49 billion in registered foreign investment during the first 11 months of 2018, behind only Hanoi and Ho Chi Minh City.

Haiphong was ranked 9^th among nationwide localities in the 2017 Provincial Competitiveness Index.

Last year, the occupancy rate of apartments reached 90 percent with rentals kept at competitive levels against Hanoi. In addition, some progress was made in the lower-end housing market with better planning across a number of urban areas. Vingroup, Hoang Huy Group, and Him Lam Corporation were among the top investors in the housing sector.