Big-name property developers flock to Hai Phong City

By Anh Tu   May 30, 2024 | 03:03 pm PT
Property giants like Vinhomes, Masterise Homes, and Geleximco have entered the Hai Phong market with projects worth trillions of dong (VND1 trillion = US$39.3 million), attracted by its potential.

The latest among them is Masterise’s eight-hectare urban area with over 200 townhouses in Thuy Nguyen District.

The site of Masterise Homes first project in Hai Phong City. Photo by VnExpress/Le Tan

The site of Masterise Home's first project in Hai Phong City. Photo by VnExpress/Le Tan

Vinhomes’ 877-hectare project on Vu Yen Island in the same district is now on sale.

The US$2.4-billion project includes high-end townhouses, villas, golf courses and other entertainment facilities.

Vinhomes is also working on another 240-hectare housing project in Kien Thuy District.

DOJI Land, BRG, Flamingo, Geleximco, Hoang Huy, and other major developers are launching large-scale housing and resort real estate projects.

Of these, Geleximco’s Dragon Hill resort project in Do Son District stands out with its total investment of over VND30 trillion.

Several foreign enterprises have also entered the Hai Phong property market with massive apartment projects such as the Minato Residence project with over 900 units developed by a Japanese firm and a Singaporean developer’s Sentosa Sky Park with more than 600.

In recent years Hai Phong has been deemed a key market by property giants following a surge in investment in nearby northern cities and provinces such as Hanoi, Quang Ninh and Thanh Hoa.

The average annual growth in investment here was over 25% in 2019-23, data from the Hai Phong Real Estate Association (HPREA) shows.

The sand table model for Vinhomes 877-hectare project in Hai Phong Citys Thuy Nguyen District. Photo by VnExpress/Anh Tu

The sand table model for Vinhomes' 877-hectare project in Hai Phong City's Thuy Nguyen District. Photo by VnExpress/Anh Tu

One of the main draws of Hai Phong is its growth potential, according to the director of a property consultancy specializing in the northern market.

It has lots of lands and low real estate prices relative to neighboring areas like Hanoi and Quang Ninh Province.

By the last quarter of 2023 the average price of an apartment in the city’s primary market was VND45 million per square meter, 23.5% lower than in Hanoi, according to real estate firm Savills.

The average villa price was VND49 million, a whopping 70% lower than in Hanoi.

Another advantage Hai Phong has is its large population of over two million people, according to HPREA.

This number is higher than those of surrounding provinces and is expected to rise as more workers migrate to the city due to its rapid industrial development, the association noted.

It has more than a dozen industrial zones, with several new large ones set to be built soon.

Last year Hai Phong attracted $3.5 billion worth of investment in industrial and economic zones, up 140% from 2022.

Savills said the increase in investment would boost demand for affordable housing from workers and professionals.

According to Do Thi Thu Hang, senior director of advisory services at Savills Hanoi, the balanced development of various housing segments is a unique characteristic of the Hai Phong market.

"This is a defining trait and also a competitive advantage that this long-established port industrial city has over emerging markets like Bac Giang and Bac Ninh provinces."

However, a challenge when entering the city’s real estate market is that it has mostly been dominated by local customers and developers, she said.

It has not attracted the same level of investment as, say, Da Nang, which saw a significant influx of investors from Hanoi during its rapid development phase four or five years ago.

In the coming years Hai Phong is expected to see more than 25,000 new housing units built, 56% of them in Thuy Nguyen District, HPREA said.

The district has lots of land available and is close to industrial zones like Nam Cau Kien and VSIP, it explained.

The district is set to become a city next year and serve as Hai Phong’s new administrative and political center, it added.

But it said the market is unlikely to see major changes this year.

Liquidity might improve toward the year-end, setting the stage for growth in 2025, it added.

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