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Hai Phong's real estate market flourishes in 2018

Released at: 14:04, 27/12/2018

Hai Phong's real estate market flourishes in 2018

Photo: Savills Vietnam

Most segments post solid performance during the year, according to Savills.

by Ngoc Lan

Northern Hai Phong city’s real estate market flourished in 2018 in a number of segments, according to a Savills report released on December 26.

Many segments have been supported by the development and completion of important infrastructure such as the Ha Long - Hai Phong Highway, Vu Yen I Bridge, industrial parks (IPs), and the Hai Phong International Container Port.

The city’s economy has also developed strongly over the last five years and attracted increasing foreign investment. In the first eleven months of 2018, it attracted $2.49 billion in registered FDI capital, ranking its third following Hanoi and Ho Chi Minh City. It was ninth in the country’s provincial competitiveness index in 2017.

Of note, the serviced apartment market sees occupancy at over 90 per cent and rents are competitive compared to Hanoi.

According to the Ministry of Planning and Investment (MPI), in 2017, Hai Phong had a leasing area of about 3,000 ha from seven IPs. Nomura, Phase I at Trang Due, and Phase I at Deep C IPs are all full.

In 2018, huge investment from South Korea in the Trang Due IP included LG Display Hai Phong, with additional capital of $500 million in February, and LG Innotek Hai Phong, which added $501 million in August.

VinFast, Vingroup's automobile and electric motorbike manufacturing arm, has registered to invest $1.5 billion at the Dinh Vu - Cat Hai Economic Zone.

Meanwhile, the low-rise residential market has many well-planned urban areas that are changing the face of the city. Notable investors include Vingroup, Hoang Huy, Him Lam, Agape Vietnam, and the Viet Anh Investment and Development JSC.

In the resort and hotel segment, Vingroup, Sungroup, and the FLC Group will have projects in the city, on Cat Ba Island and in Do Son. Hilton, Nikko and Pullman will also increase their presence with three five-star hotels.

The low-rise segment may receive five new projects, while the apartment segment may see greater participation by foreign investors as well as by Vingroup’s VinCity.

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