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Why is Hai Phong emerging as a prime destination for property investment in 2025? Is it the strategic location, the rapid industrial growth, or the competitive pricing compared to other Vietnamese cities? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Hai Phong's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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1) Hai Phong’s diverse economy makes its real estate market resilient
Hai Phong's economy is a dynamic blend of industries that keeps its real estate market thriving.
In recent years, especially around 2023 and 2024, the city experienced a 15.01% surge in its Industrial Production Index, thanks to booming sectors like electronic components and motorized vehicles. This industrial upswing translates to more jobs, drawing people who need homes, thus naturally boosting real estate demand.
Shipping is another cornerstone of Hai Phong's economy. The bustling port, especially with the Lach Huyen terminal fully operational, is set to see increased cargo throughput. This uptick not only bolsters local businesses but also attracts international companies, creating a ripple effect in the need for both commercial and residential properties. The presence of global giants like LG and Bridgestone underscores the city's allure, bringing in expatriates who require housing and office spaces.
Tourism significantly bolsters the real estate market too. With 3.4 million tourists visiting in the first half of 2023, there's a growing demand for hotels and serviced apartments. This influx of visitors needing accommodation keeps the real estate sector vibrant. Moreover, government investments in infrastructure, such as new expressways and airport expansions, enhance the city's connectivity, making it even more appealing to businesses and tourists alike.
Hai Phong's diverse economy, with its robust shipping, manufacturing, and tourism sectors, ensures a resilient real estate market. The city's strategic location and infrastructure developments further solidify its position as a prime destination for investors.
For those considering property investment, Hai Phong offers a unique blend of opportunities, driven by its economic diversity and strategic growth. The city's ongoing development projects and international business presence make it a compelling choice for real estate ventures.
Sources: Savills, VietnamPlus, Long88Invest
2) Hai Phong’s industrial zones bring in more workers, boosting demand for homes
Hai Phong's industrial zones are drawing in a growing workforce thanks to strategic city expansion.
By 2025, the city plans to develop 15 industrial zones over more than 6,100 hectares, creating a prime environment for investors. This has led to a surge in foreign direct investment (FDI), making Hai Phong a hotspot for international business.
In recent years, Hai Phong has attracted 1,000 projects from 40 countries, with investments totaling 32.2 billion USD. The Dinh Vu-Cat Hai Economic Zone alone accounts for over 80% of the city's FDI, highlighting its importance in the region's economic landscape.
This influx of investment has generated nearly 250,000 jobs in industrial parks and economic zones, which is more than 40% of the total workforce across all business sectors. Such job creation is a key driver of the city's economic growth.
With more employment opportunities, there's a noticeable rise in demand for residential properties. The high occupancy rate of industrial parks and slightly increased land rental prices reflect this strong housing demand.
To cater to this growing need, new residential projects are being developed, specifically targeting industrial workers. This trend is reshaping the city's real estate market, making it an exciting time for potential property buyers.
Sources: VietnamPlus, VietnamNet, Nhan Dan
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Vietnam versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) In Hai Phong, you can find lower property prices with higher potential returns than in Hanoi
Hai Phong is catching the eye of property investors because of its lower prices compared to Hanoi.
One big reason for this interest is Hai Phong's impressive economic growth. In the first half of 2023, the city's Gross Regional Product grew by 9.9% year-on-year, which is much faster than the national average. This kind of growth suggests that property demand and values are likely to rise.
When it comes to rental properties, Hai Phong offers better returns than Hanoi. Apartments in Hai Phong have rental yields ranging from 3.22% to 5.02%, while Hanoi's average is around 3.70%. This means you could earn more from renting out a property in Hai Phong.
Infrastructure is another reason why Hai Phong is a hot spot for investment. The city has seen a lot of public investment in projects like expressways, ports, and bridges. This boosts connectivity and makes the city more attractive to investors, which in turn drives up property demand and value.
For those looking at landed properties, Hai Phong is particularly appealing. While apartment prices are similar in both cities, landed properties are more affordable in Hai Phong, making it a great option for real estate investment.
With all these factors combined, Hai Phong offers a promising opportunity for those looking to invest in Vietnam's property market.
Sources: Savills, Numbeo, Long88 Invest
4) With urbanization on the rise, Hai Phong is seeing more demand for modern homes
Hai Phong is experiencing a surge in urbanization, driving up the demand for modern homes.
With a population of 1,463,650 in 2024 and growing at 2.86% annually, Hai Phong is bustling with new residents. This growth is expected to continue, reaching 1,582,900 by 2027. The city's expansion is not just about numbers; it's about the vibrant life and opportunities that come with it.
The government is heavily investing in infrastructure, with over 40 trillion VND earmarked for major projects by 2025. These include a new urban area and infrastructure for an industrial park, making the city a magnet for those seeking modern living spaces.
Public transportation is also getting a boost, with plans to operate 34 bus routes and expand the urban railway network by 2025. This makes commuting easier and more attractive, adding to the appeal of modern housing options.
Real estate prices are climbing, reflecting the growing demand. The 2024 ULI Asia Pacific Home Attainability Index report points out that rising home prices and rents, along with a lack of new housing supply, are making it harder for many to afford homes in Hai Phong.
Sources: World Population Review, Vietnam.vn, E3S Conferences, ULI Knowledge
5) Hai Phong’s prime location as a major port city drives economic growth and increases real estate demand
Hai Phong's strategic location as a major port city is a key driver of its booming economy and real estate market.
Imagine a bustling port where 170.08 million tons of cargo were handled in 2023, and this number is climbing. In the first ten months of 2024, there was a 9.5% increase in cargo throughput, drawing more businesses and investors eager to tap into this vibrant economic activity.
Foreign Direct Investment is pouring in, with big names like LG, Bridgestone, and Pegatron setting up shop. By mid-2023, Hai Phong boasted 480 FDI projects, and plans are underway to expand industrial parks for high-tech industries by 2025. This influx is not just about numbers; it's about creating jobs and boosting demand for homes and offices.
Infrastructure is the backbone of this growth. The Lach Huyen Deep-Sea Port and the expansion of Cat Bi International Airport are game-changers, enhancing connectivity and making Hai Phong a hot spot for real estate. The government's push to make Hai Phong a logistics hub aims to position it as a leading maritime economic center in Southeast Asia by 2030.
Sources: VnEconomy, HEZA, Long88 Invest, Vietnam.vn, B-Company
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6) Hai Phong’s urban renewal makes older neighborhoods more attractive and valuable
Hai Phong's urban renewal projects are making older residential areas more attractive and valuable.
In 2023, the city poured over VND 22 trillion into infrastructure projects like expressways, ring roads, and bridges. This massive investment is not just about roads; it's about enhancing connectivity and accessibility, which makes these areas more appealing to both residents and investors.
As a result, property prices in these renovated areas have climbed, with the average apartment price now at VND 45 million. This price hike is a clear sign of the growing demand for housing in these revitalized neighborhoods, thanks to the proximity to large land banks and industrial parks.
Public transportation has also seen a boost, playing a crucial role in making older residential areas more attractive. The development of a modern transport infrastructure system, including expressways and ring roads, has made these areas more accessible, further increasing their appeal to potential residents and businesses.
For anyone considering buying property in Hai Phong, these improvements mean that older residential areas are not just livable but are becoming prime real estate. The city's commitment to upgrading its infrastructure is a game-changer, turning once-overlooked neighborhoods into sought-after locations.
With these ongoing projects, Hai Phong is transforming, and older residential areas are at the heart of this change, offering a blend of modern convenience and traditional charm.
Sources: Vietnam.vn, Savills
7) Hai Phong’s commitment to sustainable projects boosts your property’s long-term value
The city's focus on sustainable development projects enhances long-term property value.
Imagine living in a place where the government is pouring resources into making the environment greener. In Hai Phong, there's a big push to turn Cat Ba into a green island, which shows a strong commitment to ecological growth. This kind of investment not only makes the area more attractive but also healthier, which can naturally boost property values over time.
There's a noticeable trend in Vietnam towards eco-friendly building certifications, especially in industrial projects. This shift towards sustainable construction means that properties in Hai Phong are aligning with global sustainability standards, making them more desirable. As more buildings get these certifications, the demand for such properties is likely to increase.
Hai Phong is also seeing a rise in renewable energy initiatives and the creation of green spaces and urban parks. These developments contribute to a higher quality of life, making the area more appealing to potential buyers. When you have parks and clean energy, the neighborhood becomes a magnet for those seeking a better lifestyle, which in turn increases property values.
Government policies are also playing a crucial role. With the new Land Law and Housing Law coming into effect in August 2024, there's a structured framework supporting sustainable development. These laws are designed to ensure that property values grow over the long term, providing a stable investment environment.
In short, Hai Phong's focus on sustainability is not just about being eco-friendly; it's about creating a place where people want to live. As the city continues to develop these projects, property values are expected to rise, making it an attractive option for potential buyers.
Sources: OECD, Net Zero, VILAF
8) With Hai Phong’s cultural heritage and festivals, you can easily rent out your property short-term
Hai Phong's cultural heritage and festivals are drawing in visitors and boosting the short-term rental market.
In 2023, the city saw 7.9 million visitors, especially during big events like the Cat Ba Archipelago's World Natural Heritage celebrations. This surge in tourists during festivals means there's a huge demand for short-term stays.
Every year, Hai Phong hosts events like the "Hai Phong Food Tour" and the Cat Ba Archipelago Festival. These aren't just events; they're a chance to dive into the city's rich cultural tapestry, attracting both locals and international tourists eager for a unique experience.
When festivals are in full swing, short-term rental occupancy in Hai Phong can hit around 95%, especially near popular spots. This demand is met with a rise in short-term rental options, including new luxury apartments and resorts.
Sources: VCCI News, VnEconomy, VnExpress
We have made this infographic to give you a quick and clear snapshot of the property market in Vietnam. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) With attractions like Cat Ba Island, Hai Phong offers great short-term rental opportunities
Hai Phong's tourism is booming, with hotspots like Cat Ba Island drawing in more visitors each year.
In 2023, the city saw 3.4 million tourists, and by 2024, Cat Ba's tourist area alone experienced a 20% increase in visitors, reaching 3,675,000. This trend is set to continue, with Cat Hai District aiming for 4 million visitors by 2025.
With more tourists flocking to the area, there's a natural uptick in demand for places to stay, especially short-term rentals. While exact occupancy rates aren't available, the surge in visitors suggests that short-term rental occupancy is likely on the rise.
Infrastructure developments are also playing a key role in this growth. The construction of Cat Bi International Airport Terminal 2, which kicked off in late 2023, is part of the city's strategy to boost its tourism appeal. These improvements make it easier for tourists to visit and stay, further fueling the demand for short-term rentals.
Investing in property here could be a smart move, given the city's tourism potential. Attractions like Cat Ba Island not only draw visitors but also increase short-term rental opportunities.
As Hai Phong continues to enhance its infrastructure and tourist offerings, the city is becoming an increasingly attractive destination for both tourists and property investors.
Sources: Savills, Hai Phong Government
10) Hai Phong’s transformation into a logistics hub boosts long-term property value
The government's focus on transforming Hai Phong into a logistics hub is driving long-term real estate appreciation.
By June 2023, public investment in Hai Phong had surpassed VND 22 trillion, funding major infrastructure projects like expressways, ring roads, ports, and bridges. This investment is crucial as it boosts connectivity and accessibility, making the area more appealing for businesses and residents.
Hai Phong's logistics services have been growing at an impressive annual rate of 20-23%, significantly contributing to the city's economy. By 2025, the city plans to establish national logistics service zones, which will further enhance the logistics sector's GDP contribution. This growth not only creates jobs but also increases demand for commercial and residential properties as more people move to the area for work.
The government's policies and incentives to attract foreign direct investment have led to the expansion of industrial parks and logistics centers. As of 2023, Hai Phong had 14 industrial parks, with plans to expand to 25 by 2025. This expansion is expected to attract more multinational companies, further driving real estate demand.
Major logistics companies like DHL, UPS, and FedEx, which hold a significant market share, highlight Hai Phong's strategic importance in the logistics sector. Their presence underscores the city's potential as a logistics powerhouse.
Sources: Nhandan, Vietnam.vn, Savills
11) International companies in Hai Phong drive demand for executive housing
International companies in Hai Phong are driving up the demand for executive housing.
In 2023, Hai Phong became a major business hub, attracting $3.45 billion in foreign direct investment through 950 foreign-invested projects. This influx of international businesses has transformed the city into a bustling center for global trade and commerce.
Big names like LG, Bridgestone, and Pegatron have set up shop in Hai Phong, leading to a significant rise in expatriates. From 2018 to 2021, work permits for foreigners increased by 84%, highlighting the city's growing appeal to international professionals.
With more expatriates arriving, there's a booming need for high-end housing and serviced apartments. The city now boasts 1,500 serviced apartment units, with a high occupancy rate of 70%, showing just how strong the demand is.
Rents are climbing, reflecting the competitive market for quality living spaces. This trend is fueled by the presence of international companies, which are not only bringing in business but also creating a vibrant community of professionals seeking comfortable accommodations.
Hai Phong's property market is thriving, thanks to its strategic location and the influx of foreign investment. The city's development is closely tied to its ability to attract and retain international talent, making it a hotspot for real estate opportunities.
Sources: Savills, The Investor, Vietnam Plus
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12) Hai Phong’s coastal location gives you unique opportunities for waterfront property investments
Hai Phong's coastal location is a hot spot for unique waterfront property investments.
People everywhere are craving the charm of waterfront living, and Hai Phong is no exception. Demand for these properties is on the rise, thanks to the promise of a better lifestyle and higher property values. The city's appeal is growing, and it's easy to see why.
Tourism is booming here, with millions flocking to see the stunning Cat Ba archipelago and Do Son Beach. This surge in visitors is pushing up property values along the coast, making it a smart investment choice. Plus, the local government is pouring money into infrastructure, like new expressways and bridges, which boosts accessibility to these coastal gems.
Historically, waterfront properties in Hai Phong have been a goldmine, showing impressive appreciation rates. The average apartment price here is still lower than in Hanoi, which means there's room for growth and a great opportunity for investors. Vinhomes' successful project on Vu Yen Island is a testament to the high returns and interest in the area.
Investors are taking note, and big-name developers are flocking to the city. With the right moves, Hai Phong's property market is set to develop quickly, offering promising returns for those who get in early.
Sources: Savills, VnExpress, The Star
13) Lach Huyen deep-sea port boosts Hai Phong’s economy and property market
The development of the Lach Huyen deep-sea port is a major boost for Hai Phong's economy and real estate market.
In 2024, the port's cargo throughput hit 87.5 million tons in just the first 10 months, marking a 9.5% increase from the previous year. This impressive growth is thanks to the port's strategic spot in the bustling intra-Asia market. The port's expansion is not just about numbers; it's about positioning Hai Phong as a key player in regional trade.
Foreign Direct Investment (FDI) is pouring in, with big names like LG and Bridgestone setting up shop. By mid-2023, Hai Phong boasted 480 FDI projects, with investments reaching $1.98 billion in just the first half of the year. This surge is largely due to the city's top-notch logistics infrastructure, making it a hot spot for industrial growth.
The port's development has sparked a boom in industrial zones and manufacturing facilities, leading to a 9.9% year-on-year growth in the city's Gross Regional Product (GRP) in early 2023. This economic upswing is creating a wealth of job opportunities, especially in port-related sectors, which is great news for the local economy and real estate market.
Property prices and rental yields are climbing in areas near the port, driven by demand from businesses and workers flocking to the area. The city's investment in transportation, like expanding Cat Bi International Airport and upgrading road networks, is making Hai Phong even more attractive for real estate development.
Sources: Vietnam.vn, Long88Invest, Nhan Dan
14) With more expats moving in, there’s a higher demand for quality homes in the city
The city's growing expatriate community is boosting demand for high-quality residential properties.
With 480 FDI projects by June 2023, Hai Phong is becoming a magnet for expatriates, thanks to major investors like LG, Bridgestone, and Pegatron setting up shop. This influx of foreign professionals is reshaping the housing market, as they seek comfortable and modern living spaces.
Hai Phong's industrial landscape is expanding, with 12 industrial parks and more space expected by 2025. This growth is not just about factories; it's about attracting a workforce that demands quality housing. Foreign workers are increasingly looking for homes that offer both convenience and a touch of luxury.
New neighborhoods like Thuy Nguyen and Vinhomes Vu Yen are popping up, specifically targeting expatriates. These areas are designed to meet the high standards expected by international residents, offering amenities and environments that feel like home away from home.
Developers are keenly aware of this trend, focusing on creating residential projects that cater to the tastes and needs of expatriates. This means more than just building houses; it's about crafting communities that offer a sense of belonging and comfort.
As Hai Phong continues to grow, the demand for high-quality housing is set to rise, driven by the city's expanding expatriate community. This trend is reshaping the real estate landscape, making it an exciting time for potential property buyers.
We made this infographic to show you how property prices in Vietnam compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Hai Phong’s new highways and bridges make properties more accessible and valuable
Hai Phong's property market is booming thanks to major infrastructure upgrades.
The completion of the Hanoi-Hai Phong Expressway has been a game-changer. This expressway, finished in 2018, slashed travel time from Hanoi to Hai Phong from two and a half hours to just one hour. Now, it's a breeze for commuters and businesses to move between these cities, making Hai Phong a hot spot for property seekers.
With this newfound ease of access, property demand in Hai Phong has surged. More people and companies are eyeing the area, drawn by the convenience and potential for growth. It's not just about getting from point A to B faster; it's about opening up new opportunities for living and business.
Another feather in Hai Phong's cap is the Lach Huyen International Gateway Port. Once fully operational, this port will enable direct exports from Northern Vietnam to major markets like the US and Europe. This means lower shipping costs and a competitive edge for the region, further boosting property values.
These infrastructure projects are not just about roads and ports; they're about transforming Hai Phong into an economic powerhouse. The city's strategic location and improved connectivity make it a prime choice for investors and homebuyers alike.
As Hai Phong continues to grow, its property market is set to thrive, offering exciting opportunities for those looking to invest in a city on the rise.
Sources: VnExpress, Ship Technology
16) With expanding healthcare, Hai Phong is becoming a popular choice for retirees looking for homes
Hai Phong is becoming a hotspot for retirees, thanks to its improving healthcare infrastructure.
In 2023, the city saw a boost in public investment to enhance healthcare services, including new hospitals and expanded facilities. This is a big plus for retirees who want easy access to quality healthcare.
By 2025, Hai Phong will have even more healthcare facilities, helped by the new Cat Bi International Airport Terminal 2. This makes the city not just a medical tourism hub but also a prime spot for retirees seeking better healthcare options.
The Vietnamese government is working hard to make Hai Phong a top retirement destination, with healthcare improvements being a key part of this strategy. The real estate market is catching on, with increased demand for homes near healthcare facilities.
Neighborhoods like Thuy Nguyen are becoming popular because they are close to both industrial parks and healthcare services. This is especially appealing given Vietnam's steadily growing aging population.
As more retirees look for homes with easy access to healthcare, the demand for residential properties in Hai Phong is expected to rise. This trend is a direct response to the city's expanding healthcare amenities.
Sources: Savills, VnExpress, Horton International
17) New shopping centers and entertainment spots make nearby residential areas more attractive
When new shopping centers and entertainment spots pop up, they naturally attract more people to the area.
Take the Aeon Mall project in Hai Phong, for instance, which is set to welcome 13 million customers annually. This influx of visitors means more spending, which is great news for local businesses and creates a vibrant atmosphere.
As these areas gain popularity, property values often see a boost. In Hai Phong, neighborhoods like Thuy Nguyen are becoming hot spots, partly because of new amenities springing up. This increased demand can push property prices higher, making the area more enticing for potential homebuyers.
Improved infrastructure and public transport links are also a big draw. In Hai Phong, major investments in infrastructure, like expressways and ring roads, are making it easier for people to reach these new commercial hubs, enhancing the appeal of nearby residential areas.
These developments aren't just about shopping and entertainment; they also bring job opportunities. The Aeon Mall project alone is expected to create over 2,000 jobs, boosting the local economy and making the area more attractive for residents.
With all these factors combined, it's no wonder that areas around new shopping centers and entertainment facilities become more desirable places to live. The development of new shopping centers and entertainment facilities increases the appeal of nearby residential areas.
Sources: Savills, Hanoi Times
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.