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What will happen in Hai Phong’s real estate market? Will prices go up or down? Is Hai Phong still a hotspot for foreign investors? How is Vietnam’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with local developers, real estate agents, and clients who buy properties in Hai Phong, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Property price growth in Hai Phong's city center will slow as buyers seek cheaper options in the suburbs
In Hai Phong, property prices in the city center are slowing down as buyers look to the suburbs for better deals.
Suburban districts like Thuy Nguyen are becoming popular because they're close to industrial zones and offer more affordable housing. Thuy Nguyen is on track to become a city by 2025, which adds to its appeal.
The government is boosting suburban growth with big infrastructure projects. In 2023, over VND 22 trillion was invested in public infrastructure, including new expressways and airport terminals, making these areas more accessible.
Living costs and property prices in the city center are high, pushing buyers to the suburbs. For example, villas in Hai Phong are cheaper than in Hanoi, making larger properties more affordable outside the city center.
These suburban areas offer not just affordability but also proximity to job opportunities, which is a big draw for many. The combination of lower prices and better access to work is a winning formula for potential buyers.
As a result, the city center's real estate market is cooling off, while the suburbs are heating up with new interest and investment.
Sources: Savills, HEZA, VnExpress
2) More foreign buyers will seek eco-friendly homes in An Duong district
The An Duong district in Hai Phong is quickly becoming a favorite spot for foreign buyers interested in eco-friendly and sustainable homes.
In Vietnam, there's a growing demand for green living spaces, with over 400 certified green structures emerging by 2023 and 2024. This surge shows a strong national push towards energy efficiency and sustainability, making An Duong a key player in this movement.
The Vietnamese government is actively supporting sustainable development with various incentives. They offer tax breaks and import tax exemptions for environmental projects, making it financially appealing for developers to focus on eco-friendly housing. These policies not only help local developers but also attract foreign investors who care about the environment.
An Duong's charm is further boosted by its improved infrastructure and the local government's plans to market it as a green district. The area is rich in natural attractions and eco-friendly initiatives, making it a perfect spot for sustainable housing projects. This blend of factors makes An Duong a top choice for foreign buyers looking for sustainable living options.
Insider knowledge suggests that the district's natural beauty and commitment to green initiatives are key reasons why it's drawing attention from international buyers. The local government's efforts to enhance infrastructure and promote eco-friendly living are paying off.
With these developments, An Duong is not just a place to live but a community that aligns with the values of sustainability and environmental consciousness. Foreign buyers are increasingly drawn to this vision, making it a promising destination for those seeking a greener lifestyle.
Sources: Vietnam Briefing, The Investor, Western Pacific
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.
3) Demand for waterfront properties in Hai Phong will rise as developers build luxury homes with scenic views
The waterfront areas in Hai Phong are becoming a hot spot for luxury residential projects.
Developers are jumping on this trend, with projects like Vingroup's Vinhomes Royal Island offering luxury villas and townhouses that boast stunning views. These scenic vistas are a major draw for potential buyers looking for a touch of elegance in their homes.
Infrastructure improvements are making these areas even more appealing. The government is investing heavily in roads, ports, and bridges, making it easier to access these beautiful locations. This increased accessibility is a big plus for developers and buyers alike.
Hai Phong is also seeing a rise in tourism and expatriate interest, with nearly 8 million visitors in 2023. This influx is driving up demand for luxury accommodations, especially in waterfront areas where serviced apartments are popular.
The city's growing economy is another factor. With Hai Phong's GDP expected to take a larger share of the national GDP by 2025, there's a surge in affluent buyers. These buyers are likely to be interested in the high-end properties along the waterfront.
Developers are also attracted by the incentives offered in the Dinh Vu – Cat Hai economic zone, making it a prime location for new projects. This area is quickly becoming a hotspot for development, thanks to these attractive incentives.
Sources: Savills, APEDA, The Investor, VietnamPlus
4) Rental yields in Thuy Nguyen will rise as better infrastructure draws more long-term tenants
Thuy Nguyen district is set to see a big boost in rental yields thanks to major infrastructure upgrades.
Over the past few years, Thuy Nguyen has been buzzing with new developments, like the construction of the Nguyen Trai and Vu Yen bridges. These bridges are game-changers, linking Thuy Nguyen directly to the heart of Hai Phong City and the bustling VSIP Hai Phong Urban, Industrial, and Service Area. This improved connectivity is a magnet for both residents and businesses, making the district a hot spot for living and working.
Looking ahead, Thuy Nguyen is on track to become a city by 2025, with plans for a modern, smart, and sustainable environment. This transformation is expected to draw in more businesses and residents. The district's industrial growth, backed by large land banks and industrial parks, is creating stable jobs and attracting skilled workers. This influx is likely to push up housing demand, which in turn will boost rental yields.
Sources: Vietnam.vn, Vietnam.vn, Savills, VietnamPlus
5) Rental yields in Hai An will stay steady because of constant demand from local university students
Rental yields in the Hai An district are expected to remain stable thanks to the steady demand from local university students.
Over the past few years, the student population has been either stable or growing. For instance, in Spring 2024, there was a 2.6% increase in postsecondary enrollment compared to the previous year. This means more students are looking for housing, keeping the rental market active.
In Hai Phong, where Hai An is located, rental prices have stayed relatively stable. The median monthly rent is about 15,000,000 ₫, and the median rent per square meter is 238,000 ₫. This consistency in pricing shows a steady demand, likely fueled by students needing places to stay near their schools.
Hai An's location is a big plus. It's close to major educational institutions, especially those near Vinhomes Marina. This geographical advantage makes it a hot spot for students, further boosting the demand for rentals in the area.
With these factors in play, the rental market in Hai An is expected to remain robust, driven by the continuous influx of students. This makes it a promising area for property investment.
Sources: FazWaz, Education Data
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6) Rental yields in Le Chan will rise as more expats move in for jobs in the growing industrial sector
Rental yields in Le Chan are on the rise as more expatriates flock to the area for jobs in the booming industrial sector.
Le Chan is becoming a hotspot for foreign companies, thanks to the efforts of the Hai Phong Economic Zone Authority. As these businesses set up shop, they create new job opportunities that attract expatriates to the district. This influx of international workers is a key driver of the rental market.
The industrial sector in Hai Phong, including Le Chan, is thriving. In just the first nine months of 2024, 53 projects with a total investment of 1.24 billion USD were launched in the region's industrial parks and economic zones. This surge in industrial activity means more jobs and, consequently, a larger expatriate workforce.
Infrastructure development is also playing a crucial role. Projects like the Tan Vu – Cat Hai bridge and Lach Huyen international port are enhancing connectivity and logistics. This makes it easier for expatriates to live and work in Le Chan, boosting the area's appeal as a residential choice.
With improved infrastructure, Le Chan is becoming increasingly attractive to expatriates, which in turn is driving up demand for housing. This demand is expected to continue rising, pushing rental yields higher as more expatriates settle in the area.
As the industrial sector grows and infrastructure improves, Le Chan is set to become a prime location for expatriates, further increasing rental yields. The district's transformation is a testament to its potential as a thriving residential hub.
Sources: HEZA, Hai Phong DPI
7) Suburban rents will drop as more affordable housing options emerge
Hai Phong is on a mission to build 33,500 social housing units by 2030, focusing on affordable options for low-income earners and industrial park workers.
By 2025, 15,400 of these units are expected to be ready, with many already hitting the market. This push is part of a larger national goal to create at least one million social housing units by 2030.
Government incentives are a big driver here. Decisions like Decision No. 117/QD-UBND by the Hai Phong City People's Committee are crucial in making affordable housing a reality. These efforts are not just local but align with broader national strategies.
With more affordable housing options popping up, suburban rental markets are likely to feel the impact. As people find better housing deals, suburban rentals might see higher vacancy rates.
This shift means suburban rental prices could drop as more people opt for owning homes or rent-to-own schemes. It's a trend that could reshape the housing landscape in these areas.
For potential buyers, this is a chance to explore new opportunities in the housing market, especially with the expected changes in suburban rental dynamics.
Sources: HEZA, VCCI News, Green Builder Media
8) City center rents will keep rising as young professionals continue to favor urban living
In Hai Phong, the apartment occupancy rate is impressively high at 91%, with rents at a competitive 238,000 VND per sq.m monthly.
Young professionals are flocking to the city, driven by increasing demand for office space from foreign companies, which in turn boosts the housing market.
The city is buzzing with new businesses and amenities, making it a hotspot for young professionals. International brands are entering the serviced apartment market, adding to the city's vibrant urban lifestyle.
Government infrastructure projects are enhancing urban connectivity, making city living even more appealing. This is likely to drive up demand for rental properties in the city center.
With these developments, rents in the city center are expected to keep rising as the demand for urban living remains strong among young professionals.
Sources: VietnamPlus, Manpower Vietnam, DEEP C Report
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Vietnam. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Property prices in Do Son will be affected by stricter coastal development regulations
Stricter regulations on coastal development in the Do Son area are set to shake up the property market.
With the creation of the Hai Phong Southern Coastal Economic Zone in 2024, there's a big push for sustainable development and environmental protection. This means new rules could limit what and how much can be built along the coast.
When rules get tougher, developers often face higher costs and more complicated approval processes. This can scare off investors who see these regulations as hurdles, potentially cooling their interest in the area.
The Master Plan of Hai Phong City, approved in 2023, puts a spotlight on environmental protection. This could mean even stricter rules for coastal development, which might shift the market dynamics in Do Son.
As developers and investors adapt to these changes, property values in the area could be affected. The demand might drop, leading to possible price adjustments.
These changes are not just about protecting the environment; they also reshape how and where development can happen, impacting property prices in the process.
Sources: Vietnam.vn, Savills, LuatVietnam
10) Foreign investment in Thuy Nguyen will increase as international companies set up operations there
Thuy Nguyen district is quickly becoming a magnet for foreign investment.
Thanks to major infrastructure upgrades, like the new Nguyen Trai and Vu Yen bridges, the area now boasts improved connectivity, making it a prime spot for investors. The government is actively promoting Thuy Nguyen as a key industrial-service hub and a historical urban center, aligning with plans to transform Hai Phong City into a multi-center urban area by 2040.
Thuy Nguyen's strategic location in the East-West Economic Corridor boosts its appeal, offering easy access to major seaports and nearby Chinese provinces. This makes it an attractive choice for manufacturers looking to expand their operations. The district is also home to modern industrial parks, like the Diem Thuy Industrial Park, which provide the essential infrastructure needed for industrial growth.
Investors are drawn to Thuy Nguyen not just for its location but also for the government's commitment to fostering a business-friendly environment. The district's inclusion in long-term urban development plans signals a promising future, with increased opportunities for international companies to establish a presence in the area.
As Thuy Nguyen continues to develop, the district is poised to become a key player in the region's economic landscape. The combination of strategic planning, infrastructure improvements, and government support makes it an ideal destination for foreign investment. With modern facilities and strategic positioning, Thuy Nguyen is set to attract a wave of international interest.
For those considering investing in Vietnam, Thuy Nguyen offers a unique blend of opportunity and growth potential. The district's transformation into a vibrant economic hub is well underway, promising significant returns for forward-thinking investors.
Sources: Vietnam.vn, Vietnam Briefing, Vietnam Briefing
11) Interest from foreign buyers in Do Son will decrease due to environmental sustainability concerns
Foreign buyers are showing less interest in Do Son due to environmental sustainability concerns.
In recent years, particularly in 2023 and 2024, Hai Phong has grappled with significant environmental challenges. These issues stem from industrial activities and urban runoff, which have negatively impacted water quality and increased pollution levels. This situation is particularly concerning for foreign investors who prioritize environmentally sound locations.
Pollution in Hai Phong, including Do Son, has been on the rise, mainly due to industrial activities. This uptick in pollution is a red flag for foreign buyers, who often seek areas with better environmental conditions. Local news frequently highlights environmental degradation in Do Son, further discouraging foreign investment.
Environmental damage, such as beach erosion, is another significant concern for potential buyers. Beach erosion threatens the stability and sustainability of the area, making it less appealing to those looking for long-term investments. Reports from government and NGOs suggest that these issues are widespread in Hai Phong, indicating that Do Son might face similar challenges.
For those considering property in the area, it's crucial to understand the broader environmental context. Government and NGO reports highlight ongoing environmental challenges in Hai Phong, which could impact the attractiveness of Do Son for foreign buyers.
These environmental concerns are not just local gossip; they are well-documented in various reports. Such documentation underscores the seriousness of the situation, making it a critical factor for anyone considering investment in Do Son.
Sources: VnEconomy, OECD Report
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12) Eco-friendly residential projects will grow as new tax incentives for green buildings are introduced
New tax incentives for green buildings are set to boost eco-friendly residential projects in Hai Phong.
Since 2014, Hai Phong has been on a mission to become a "Green Port" city, showing a strong commitment to sustainability. This dedication has paid off, as in 2023, Hai Phong ranked 7th out of 63 provinces in the Provincial Green Index. This ranking reflects the city's significant strides in environmental protection, creating a fertile ground for green projects.
Hai Phong's strategic location and well-developed infrastructure make it a magnet for foreign investors keen on green technology. The city is integrating renewable energy solutions, like rooftop solar power, into its industrial parks. A prime example is the rooftop solar system at DeepC Industrial Park, which generated 3370 MWh in 2023, cutting down 2433 tons of CO2 emissions.
The city's proactive stance on green growth suggests that these tax incentives are part of a broader strategy to promote renewable energy and eco-friendly production. Local authorities are teaming up with developers to push for eco-friendly construction, showing a collaborative effort to advance green building projects.
Hai Phong's business ecosystem is also a draw for developers interested in sustainable building materials. The city's focus on green growth aligns with global trends, making it an attractive destination for those looking to invest in eco-friendly projects.
With these new tax incentives, Hai Phong is not just talking about green growth; it's taking concrete steps to make it happen. The city's efforts are paving the way for a more sustainable future, encouraging developers to invest in eco-friendly residential projects.
13) More foreign buyers will focus on Lach Tray for its lively culture and amenities
Foreign buyers are eyeing the Lach Tray area for its lively cultural scene and modern amenities.
Hai Phong is buzzing with economic growth, and foreign direct investment is on the rise. This boom is pushing property prices up in the city center, so savvy buyers are looking at emerging spots like Lach Tray.
New shopping centers and recreational facilities are popping up in Hai Phong, and Lach Tray is set to benefit. These developments make it a hot spot for those wanting modern conveniences.
The government is pouring money into infrastructure, which means better roads and transport links for Lach Tray. This makes the area even more appealing to foreign buyers.
Lach Tray is a melting pot of dining and entertainment options, catering to international tastes. This cultural variety is a magnet for expatriates who crave vibrant neighborhoods.
With its mix of culture and convenience, Lach Tray is becoming a top choice for foreign property buyers.
Sources: Vietnam Plus, Vietnam Briefing
14) Rental yields in An Lao will drop as new housing developments exceed demand
The An Lao district is seeing a drop in rental yields as new housing developments outpace demand.
With a surge in new housing projects, there's an oversupply of rental properties in An Lao. This means more homes are available than there are renters, pushing landlords to lower prices to attract tenants.
In the broader Hai Phong area, including An Lao, the housing market is flooded with new developments. This oversupply leaves many properties empty, further driving down rental yields.
People in Hai Phong are showing a strong preference for buying homes over renting. This shift means fewer renters in An Lao, adding to the rental yield decline.
Additionally, if An Lao's population growth is stagnant, it might suggest limited job opportunities, which could further reduce rental demand.
Sources: FazWaz.vn, KMM Realty, Vietnam Real Estate
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.