All You Need to Know about Commercial and Residential Real Estate in Hai Phong

Hai Phong, a pivotal industrial gateway, and port city in Viet Nam, stands at the forefront of real estate investment. Its robust infrastructure development has propelled economic growth and attracted significant Foreign Direct Investment (FDI), making it an attractive prospect for investors. With a burgeoning population and a dynamic workforce, Hai Phong offers a wealth of property investment opportunities.  

This article delves into the residential and commercial real estate markets in Hai Phong, shedding light on the trends shaping the city's real estate landscape and highlighting its immense potential for savvy investors.

What Drives Residential and Commercial Investment in Hai Phong?

Hai Phong's economic prowess is evident, with the Gross Regional Domestic Product (GRDP) surging by 9.9% in H1/2023, outperforming the national average. It ranked third nationally and first in the Red River Delta, solidifying its position as a prime destination for real estate investment. Industry and construction played a pivotal role in this growth, increasing by 10.2% YoY, further fuelling demand for residential and commercial real estate in Hai Phong.

In H1/2023, Hai Phong attracted foreign direct investment (FDI) of US$1.98 billion, marking an impressive 80% YoY increase. The city is now home to 480 FDI projects in industrial parks and economic zones, with investments totalling US$24.85 billion. Notable investors include LG, Bridgestone, Regina Miracle, and Pegatron. This surge in FDI and ongoing investment projects in Hai Phong are poised to generate demand for housing. The growing workforce presents lucrative property investment opportunities in Hai Phong's real estate sector. Expanding sectors like worker housing could present interesting investment opportunities.

Read about infrastructure projects in Hai Phong that support real estate development.

Commercial Real Estate in Hai Phong: An Overview

The Real Estate Market in Hai Phong

Hai Phong is emerging as a promising real estate market in northern Viet Nam, fuelled by strong economic and demographic factors, diverse investment segments, improved infrastructure, and high-quality projects. The city's strategic location, combined with these factors, positions it as a thriving hub for commercial real estate investment.

Commercial Sectors: Emerging Horizons

Offices in Hai Phong: Domestic and foreign enterprises expanding their operations in Hai Phong. Office stock has increased by 4% YoY, reaching 173,000 m² NLA from Grade B and C offices in H1/2023. There is clear demand with occupancy sitting at 91%, however, rent is highly competitive at VND 238,000/m2/month. Healthy office occupancy reflects Hai Phong's standing as a business-friendly destination.

Retail in Hai Phong: Retail occupancy is increasing, with upcoming projects set to redefine Hai Phong’s retail landscape. According to Savills recent Spotlight: Hai Phong publication, Retail occupancy across 15 projects increased by 2 ppts YoY to 79% in H1/2023. Ground floor rent averaged VND 741,000/m²/month.

Residential Real Estate: A Promising Outlook

Apartments in Hai Phong

Apartment stock in Hai Phong has shown a steady increase, reaching 11,969 units from 11 projects in H1/2023. Le Chan had the largest share at 46%. Apartment prices in Hai Phong averaged VND 45 million, -15% lower than in Ha Noi. Since 2019, primary prices have increased by 8% pa.  

Future supply, from H2/2023 onward, is scheduled to reach 25,100 units, with Thuy Nguyen District leading with a 56% share. This surge in supply is aligned with the rising demand for residential properties in Hai Phong, presenting an opportune moment for property investors and developers.

Landed Properties in Hai Phong

This segment displays growth, with a stock of 6,774 dwellings increasing by 5% YoY in H1/2023. Le Chan District was the largest supplier with a 33% share.  

Villa/townhouse (VLTH) stock was 6,774 dwellings, increasing by 5% YoY. Le Chan District was the largest supplier with a 33% share. Primary stock of 330 dwellings was -59% fewer than in Ha Noi. Primary prices averaged VND 49 million/m2 LA, less than in Ha Noi; according to Savills H1/2023 Market Brief, Ha Noi’s primary villa prices were VND 100 million/m2 LA in Q2/2023 with the entry of new affordable products and low-priced inventory in Me Linh District. Townhouse prices improved by 4% QoQ to VND 173 million/m2 LA, while shophouse prices decreased by -7% QoQ.

Emerging neighbourhoods in Hai Phong offer modern amenities and affordable prices compared to major markets like Ha Noi. The scarcity of affordable and quality products segment creates opportunities for professional developers.

Conclusion: Hai Phong's Real Estate Landscape

In summary, Hai Phong's economic vigour, combined with a surge in FDI and robust infrastructure, positions it as a prime destination for real estate investors. The commercial and residential sectors hold immense potential, driven by a dynamic workforce and strategic economic growth. As Hai Phong continues its upward trajectory, the city presents a compelling opportunity for those looking to capitalize on its development potential. The emergence of new urban districts and the expansion of industrial and economic zones are indicative of the exciting investment prospects in Hai Phong's real estate sector.

Are you interested in learning more about property investment opportunities in Hai Phong? Read more in Spotlight: Hai Phong sav.li/3se  or contact Hang Do Thi Thu, Senior Director, Advisory Services.

See more: What is driving real estate development in Hai Phong?