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What is happening in Hai Phong’s real estate market? Are prices going 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?
These are the questions everyone is asking us every day—professionals, buyers, and sellers alike, from the bustling streets of Hai Phong to the serene coastal areas. Perhaps you’re wondering the same thing.
We know this because we stay deeply connected with local professionals and people like you, diving into the Hai Phong real estate market every single day. That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market trends and dynamics.
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) Foreign buyers will increasingly target Hai Phong due to favorable investment policies
Foreign buyers are increasingly interested in Hai Phong, thanks to favorable investment policies.
By 2023, Hai Phong had become a major hub for foreign direct investment in Vietnam, ranking as the second-largest recipient with $3.45 billion from 950 projects. The city is not slowing down; in 2024, it aims to attract another $2-2.5 billion, focusing on high-capacity investors and green technologies.
Infrastructure is a big draw for investors. Hai Phong is expanding Lach Huyen port and upgrading Cat Bi international airport, making it even more appealing. The city plans to build 100 new bridges with a $3.6 billion investment, boosting connectivity and attractiveness.
Hai Phong's business environment is among the best in Vietnam, aiming to be a modern, smart, and sustainable industrial city. This aligns with what foreign investors are looking for: stable and promising opportunities. Media coverage is also spotlighting Hai Phong as an emerging hotspot, catching the eye of potential buyers.
With these developments, it's no wonder that foreign interest is growing. The city's commitment to infrastructure and a favorable business climate makes it a prime location for investment. Investors are particularly drawn to the city's strategic location and development plans.
Hai Phong is not just a place to invest; it's a city on the rise, offering a blend of opportunity and growth. The focus on environmentally friendly technologies and high-capacity investors is a testament to its forward-thinking approach.
Sources: Vietnam Briefing, Nhan Dan, HEZA, Vietnam Plus
2) Hai Phong will see more foreign investors as it integrates into global trade networks
Hai Phong is becoming a hotspot for foreign investors, with $1.98 billion in foreign direct investment in 2023.
Looking ahead to 2024, the city plans to attract between $2-2.5 billion in FDI, targeting major investors who bring not just capital but also eco-friendly technologies. This approach is in line with global trends, making Hai Phong even more appealing to international players.
Infrastructure is a big part of this transformation. The Lach Huyen International Gateway Port is a game-changer, set to boost seaborne transportation. This port will allow direct exports from Northern Vietnam to the US and Europe, cutting down on shipping costs and enhancing competitiveness.
As Hai Phong integrates more into global trade networks, the number of foreign investors is expected to rise. The city's strategic location and improved infrastructure make it a prime spot for businesses looking to tap into Asian markets.
With these developments, Hai Phong is not just a city to watch; it's a city to invest in. The combination of strategic planning and infrastructure upgrades is setting the stage for a surge in foreign interest.
For those considering property investment, Hai Phong offers a unique opportunity. The city's growth trajectory and focus on sustainable development make it an attractive option for savvy investors.
Sources: Vietnam Briefing, Ship Technology, Vietnam Plus
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) Hai Phong’s property prices will rise moderately with economic growth
Hai Phong's residential property prices are on the rise thanks to a booming local economy.
The city's economic growth is impressive, with a 9.9% increase in its gross regional domestic product (GRDP) in the first half of 2023. This growth outpaces the national average, highlighting Hai Phong's strong economic standing. By 2025, the city is expected to contribute 6.4% to the national GDP, up from 3.9% in 2022, underscoring its growing importance.
Foreign direct investment (FDI) is another key driver. In 2023, Hai Phong attracted $3.5 billion in FDI, marking an 80% jump from the previous year. This influx is set to boost the local economy and create jobs, fueling demand for homes. Big names like LG, Bridgestone, and Pegatron are already investing in the city's industrial parks, making it a hot spot for investors.
Infrastructure is also a game-changer. In 2023, public investment in projects like expressways, ring roads, and ports surpassed VND 22 trillion. New deep-water berths at the Hai Phong International Gateway Port are already operational, with more expected by 2025. This enhances the city's connectivity, making it more attractive for businesses and residents alike.
With these developments, Hai Phong is not just a place to live but a city on the move. The combination of economic growth, foreign investment, and infrastructure improvements is setting the stage for a vibrant property market. If you're considering buying property here, you're looking at a city that's poised for continued growth.
Sources: VietnamPlus, Nhan Dan, Savills
4) Rental yields in industrial zones will increase as worker demand grows
Rental yields in industrial zones are on the rise due to a growing demand from workers.
In Hai Phong, the industrial scene is booming with 480 FDI projects in industrial parks and economic zones as of June 2023. Big names like LG, Bridgestone, and Pegatron are setting up shop, fueling this industrial growth.
Employment is surging in these areas, with 177,000 people now working in enterprises within economic zones and industrial parks, according to the Hai Phong Labor Federation. This job boom means more workers are looking for places to live nearby.
Surveys show that workers are increasingly seeking housing close to their jobs. A labor market study in Hai Phong reveals a high demand for skilled workers in industrial parks, suggesting a steady influx of people moving to these areas and boosting the need for rental homes.
Real estate market analyses back this up, showing a spike in rental demand in industrial zones. By Q3 2024, the industrial land area in Northern Vietnam expanded to 16,700 hectares, a 16% jump from 2023. This has pushed average rental prices for industrial land up by 5.7%.
Sources: HEZA, DEEP C, B-Company
5) Government policies will support the growth of affordable housing projects
The Vietnamese government is committed to developing affordable housing, especially in Hai Phong.
By 2030, the plan is to build 1 million social housing units across the country, with Hai Phong responsible for 33,500 of them. This initiative is all about helping low-income families and workers find homes they can afford.
In 2023, Hai Phong's City Party Committee decided to make social housing a priority. They aim to have 15,400 units ready by 2025 and another 18,100 by 2030. Projects like the An Dong low-income housing area, with its 636 apartments, are part of this push.
Public-private partnerships are a big deal here. The government has a Public-Private Partnership (PPP) Code to make it easier for private investors to get involved in projects like PG Aura An Dong and Lakeside Garden. This collaboration is key to getting high-quality affordable housing built.
Sources: HEZA, Bao Hai Duong, HEZA
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6) Rising middle class will boost demand for affordable housing
Hai Phong's middle class is seeing a big jump in income levels, making home buying more feasible.
As more people flock to cities like Hai Phong, urbanization is driving up the demand for housing. This shift is largely due to the middle class chasing better jobs and living standards, which naturally boosts the need for affordable homes.
Government efforts are also in play. With investments in infrastructure like expressways and ports, Hai Phong is becoming a more attractive place to live. This makes affordable housing even more appealing to the growing middle class.
Looking ahead, Vietnam's middle class is set to expand from 13% of the population in 2023 to 26% by 2026. This growth is powered by a young population and a strong economy, which means more people will be looking for homes.
In Hai Phong, the average monthly income per person in 2023 was over three times what it was in 2010. This income boost gives more people the means to buy homes, pushing up housing demand.
All these factors combined mean that affordable housing is becoming a hot commodity in Hai Phong, especially for the middle class.
Sources: Vietnam Briefing, Savills, Statista
7) Coastal areas will maintain stable rental yields with the development of tourism projects
Coastal areas like Hai Phong are seeing a tourism boom, which is great news for property investors.
In 2023, Hai Phong attracted 7.9 million visitors, a jump of 12.85% from the previous year. This trend is continuing strong into 2024, with a 10.92% increase in visitors in just the first three months, including more international tourists.
The city is not resting on its laurels. It's rolling out projects like the "master project for Hai Phong tourism development to 2025 and further to 2030" and initiatives to boost rural tourism. These efforts are designed to draw more visitors, which means more demand for places to stay and stable rental yields.
Adding to the allure, the Ha Long Bay - Cat Ba Archipelago has been recognized as a World Natural Heritage site by UNESCO. This recognition is a big deal, as it not only raises the area's profile but also encourages investment in infrastructure and hospitality.
With these developments, Hai Phong is becoming a hotspot for tourists and investors alike. The city is expected to welcome 9.1 million tourists by 2024, which is a promising sign for those looking to invest in property.
As tourism projects develop, rental yields in coastal areas are likely to remain stable, making it an attractive option for property buyers.
Sources: VCCI News, Vietnam Plus, Hai Phong Government
8) City center rental yields will rise due to strong demand from young professionals
Rental yields in Hai Phong's city center are on the rise thanks to a surge in demand from young professionals.
In Northern Vietnam, especially in Hai Phong, there's a growing need for skilled workers in manufacturing, electronics, and logistics. This demand is pulling in young professionals eager for new opportunities. By June 2023, the city had attracted 480 FDI projects in its industrial parks and economic zones, with big names like LG, Bridgestone, and Pegatron leading the charge. This influx is not just about jobs; it's about creating a vibrant community where young professionals want to live.
Office spaces in Hai Phong have been expanding, with a 2% annual increase in office stock from 2019 to mid-2023. The competitive rents make it an attractive spot for businesses, which in turn draws in more young professionals looking for urban living. The city's development of industrial parks and economic zones is a magnet for businesses, offering investment incentives that bring in amenities catering to this demographic.
These industrial parks and economic zones are not just about factories; they are becoming hubs of activity with amenities that appeal to young professionals. This trend is boosting the demand for rental properties in central locations, as more people seek the convenience and lifestyle that urban living offers.
Investors are taking note, as the combination of job opportunities and urban amenities makes Hai Phong a hot spot for young professionals. The city's strategic development is creating a cycle where more businesses attract more talent, which in turn fuels the need for more housing.
With the ongoing development and the influx of young professionals, rental yields in the city center are set to climb, making it an attractive prospect for property investors looking to tap into this growing market.
Sources: Savills, Manpower Vietnam
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) Central district property prices will rise significantly due to limited land availability
Property prices in Hai Phong's central districts are on the rise, and it's catching the eye of potential buyers.
In 2023, apartments were going for about VND 45 million per square meter, and this upward trend didn't stop there. By 2024, if you were looking at villas or townhouses, you'd be looking at around VND 49 million per square meter. This jump is largely due to the high demand and the fact that there's just not much land left to build on.
Why is land so scarce? Well, Hai Phong did set aside a land fund for social housing, but it's only a bit over 400 hectares. That's not much when you consider how fast the city is growing. Plus, if you're thinking about industrial land, it's pricey too, averaging $120 per square meter, which is among the highest in the North.
Urbanization and tourism are also playing a big role in this demand. In the first half of 2023, 3.4 million tourists visited Hai Phong, drawn to spots like the Cat Ba archipelago and Do Son Beach. This influx of visitors is pushing up the need for housing in the central areas.
Adding to the mix, the city's economy is booming with a 9.9% growth in GRDP and a healthy dose of foreign direct investment. All these factors are making central districts a hot spot for property buyers.
10) Demand for rental properties near industrial zones will rise with the influx of skilled workers
The influx of skilled workers into Hai Phong is set to boost demand for rental properties near industrial zones.
With new factories popping up, like those in the expanding DEEP C Industrial Park, the need for nearby housing is growing. This park is adding high-quality warehouses and hybrids, signaling a rise in industrial activity that draws in skilled workers.
Hai Phong's investment in infrastructure, especially improved public transportation, makes living near these industrial zones more convenient. This convenience, paired with the city's relatively low cost of living, makes it an attractive spot for both local and expatriate skilled workers.
As employment rates rise, particularly in manufacturing, labor demand is expected to nearly double by 2025. This surge in job opportunities is a magnet for skilled workers, further driving the need for rental properties.
For those considering a move, the city's blend of industrial growth and affordable living is a compelling combination. The influx of skilled workers will boost demand for rental properties near industrial zones.
Sources: DEEP C Hai Phong External Report, The Investor, Expat Exchange
11) Property prices in Le Chan district will surge with new shopping and entertainment facilities
The Le Chan district in Hai Phong is buzzing with new shopping and entertainment developments.
One standout is the AEON MALL, which is actively hosting events and sales, signaling ongoing investment in commercial infrastructure. This makes Le Chan more appealing to both potential residents and investors.
Plans are underway to elevate Thuy Nguyen district, including Le Chan, to city status by 2025, which is expected to drive significant residential demand. This urban development, along with mega projects like Vinhomes Vu Yen Island, is likely to boost property prices in Le Chan.
Property market trends show a 37% rise in transaction volumes in Hai Phong during Q2 2023 compared to Q1, reflecting increased interest in the area.
Since 2019, primary prices in Hai Phong have been on a steady rise, increasing by 8% each year. This suggests a strong market foundation that could be further bolstered by the new amenities in Le Chan.
Similar districts in Hanoi have seen significant price increases due to luxury housing projects and gentrification, hinting at a comparable trend for Le Chan.
Sources: Vietnam Plus, AEON MALL Hai Phong Le Chan, Vietnam Real Estate News, Vietnam Real Estate
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12) Tax incentives will boost investment in eco-friendly residential projects
New tax incentives are set to encourage investment in eco-friendly residential projects, especially in places like Hai Phong.
In recent years, Hai Phong has seen a boom in eco-friendly residential developments. The city's urban development plan is all about creating a green and modern seaport urban area. This has led to new industrial parks and clusters that meet sustainable standards. Thanks to the city's offer of import and export tax exemptions, plus corporate income tax breaks for up to 15 years, property taxes for green buildings can be significantly reduced.
Developers in Hai Phong are jumping on the sustainable construction bandwagon. The city's master plan for 2021-2030, with a vision towards 2050, is pushing for green industry and eco-industrial real estate. This means investors are encouraged to use renewable energy and environmentally friendly production technologies. The media is also buzzing with positive stories about the benefits of eco-friendly investments.
Hai Phong's commitment to sustainability is part of a bigger picture. The Vietnamese government is actively promoting eco-friendly investments through various tax incentives, as seen in their National Green Growth Strategy. This strategy includes measures like tax exemptions and reductions to support green industries and eco-friendly projects.
For those looking to invest in property, Hai Phong offers a unique opportunity. The city's focus on sustainable development, combined with attractive tax incentives, makes it a prime location for eco-friendly residential projects. Investors can benefit from reduced property taxes and a growing market for green buildings.
With the government's backing and a clear vision for the future, Hai Phong is set to become a leader in eco-friendly urban development. The city's efforts to create a sustainable and modern urban area are attracting both local and international investors. This trend is expected to continue as more developers commit to sustainable practices and take advantage of the available tax incentives.
Sources: VnEconomy, HEZA, Vietnam Briefing, VietnamPlus
13) Tighter regulations on property speculation will aim to stabilize the market
Property prices in Hai Phong have been climbing steadily, with apartments now averaging VND 45 million per square meter in 2023.
This consistent rise, about 8% each year since 2019, hints at speculative buying as a key driver. The Vietnamese government is aware of this and is taking steps to address it.
To tackle speculation, the Ministry of Construction is rolling out new rules to professionalize brokerage activities and make real estate transactions more transparent. These changes aim to curb speculation that could destabilize the market.
Looking ahead, new laws like the 2024 Land Law and the 2023 Real Estate Business Law will kick in on August 1, 2024. These laws are set to regulate real estate business contracts and boost transparency and security in property deals.
These efforts are part of a broader strategy to stabilize the market, ensuring that property speculation doesn't lead to volatility. The government is clearly focused on creating a more stable and transparent real estate environment.
For those considering buying property in the country, these changes mean a more secure investment landscape. The tightening regulations are a sign that the government is serious about maintaining market stability.
Sources: Savills, VietnamPlus, Vietnam Briefing
14) Areas near international schools will see rising demand from foreign buyers
International schools are popping up more frequently in places like Hai Phong, with the Alpha Hai Phong Inter-School opening in 2024.
As Vietnam becomes a hotspot for expatriates, the demand for quality education is rising. This is fueled by urbanization and foreign investment, with Vietnam's urbanization rate at 42.6% in 2023 and expected to climb over 50% by 2030.
Foreign buyers are drawn to areas with strong educational infrastructure. International schools are a major attraction, often leading to increased property demand and higher property values in those areas.
The Vietnamese government is on board, encouraging foreign investment in both education and real estate. This support helps build educational infrastructure, making neighborhoods near international schools even more appealing to foreign buyers.
In cities worldwide, the presence of international schools often boosts property demand. This trend is no different in Vietnam, where such schools are becoming a key factor in real estate decisions.
With more international schools, areas around them are becoming prime real estate for foreign buyers looking for quality education options for their children.
Sources: Deloitte, Vietnam.vn
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) Suburban property prices may dip slightly as urban development progresses
Suburban property prices in some areas are slightly declining as urban centers grow more developed.
Take Hai Phong, for instance. As the city expands, it becomes more attractive to buyers because of better accessibility and amenities. While the real estate market is improving, luxury apartments in suburban spots like Le Chan district are seeing a dip in prices compared to bustling urban centers like Hanoi. This shift suggests that as cities develop, the charm of suburban areas might fade.
Infrastructure is a big player here. Hai Phong is pouring resources into expressways, ring roads, and ports, which boost connectivity to urban areas. These upgrades make city living more enticing, pulling in more residents and investors to the heart of the city.
Looking at property prices, the trend is clear. In Hai Phong, landed properties cost less in suburban areas than in urban centers. This pattern shows that as urban areas grow, suburban appeal might wane, nudging property prices down a bit.
Sources: Savills, Hai Phong Government, Bao Hai Duong
16) Suburban rental yields may dip slightly as property availability increases
Hai Phong is buzzing with new construction and development, especially in its suburban areas.
With the rise of industrial parks and the upcoming Southern Economic Zone, the suburbs are seeing a boom in housing units. In 2023 alone, several apartment projects wrapped up, and places like Thuy Nguyen are becoming hot spots for new residents. But with all this new housing, there's a risk of having too many homes and not enough renters.
The government is making it easier for developers to build in the suburbs, turning once quiet areas into lively neighborhoods. This push has significantly boosted the housing supply, making suburban living more accessible than ever.
However, while the suburbs are growing, many people still prefer the hustle and bustle of city life. This shift towards urban centers, combined with the flood of new suburban properties, hints that rental yields might dip a bit as more homes hit the market.
For potential buyers, this means suburban properties could become more affordable, but the return on investment might not be as high as before. It's a balancing act between getting a good deal and ensuring a steady rental income.
So, if you're eyeing a property in Hai Phong's suburbs, keep an eye on these trends. More homes mean more choices, but also a more competitive rental market.
Sources: Savills, Vietnam Plus, World Bank, Savills Industrial, VnEconomy
17) Hai Phong's outskirts will see stable property prices as development expands
Hai Phong is buzzing with new infrastructure projects, making it a hot spot for potential property buyers.
In 2023, the city poured over VND 22 trillion into developing expressways, ring roads, ports, and bridges. This includes big-ticket items like the Hai Phong airport and the new terminal at Cat Bi International Airport, which kicked off in late 2023. These improvements are not just about better roads and airports; they’re setting the stage for long-term growth and stability in property prices as the city becomes more accessible and connected.
Looking ahead, the government is planning urban expansion and zoning changes. By 2025, new districts such as An Duong and a city within Thuy Nguyen district are expected to pop up. This is part of a grander vision to have 9 districts by 2030. As these areas develop, property prices are likely to stabilize, offering a more predictable market for buyers.
Thuy Nguyen is particularly interesting. It's on track to become a city by 2025, and the demand for affordable housing there is on the rise. With large land banks and industrial parks, the area is primed for residential growth. This means stable property prices are crucial to accommodate the influx of new residents.
For those eyeing the outskirts of Hai Phong, the spread of development is a good sign. As infrastructure projects continue and new districts emerge, property prices in these areas are expected to remain stable. This stability is attractive for anyone considering a long-term investment in the region.
So, if you're thinking about buying property in Hai Phong, now might be the time to act. With all these developments, the city is poised for a bright future, making it an appealing choice for potential homeowners and investors alike.
Sources: Vietnam.vn, Savills
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.