According to a report by the Quảng Ninh Tourism Department, in the first six months of 2018, the number of visitors to the province reached 7.5 million, up 26% over the same period in 2017 thanks to its attractive tourist destinations such as Ha Long which is one of the seven natural wonders of the world, Uong Bi, Cam Pha, etc and strong development of key transport projects such as the Halong-Haiphong Expressway, Quang Ninh Airport, and Bach Dang Bridge. With this tourism potential and abundant natural resources of sea as well as good geographic location, Quang Ninh is luring a large number of big investors, especially in real estate. 1)
As reported by the Quang Ninh Planning and Investment Department, there are over 100 developed and developing real estate projects with the total investment of over $5.5 billion covering all segments and sectors in the province.2)
A range of medium and large-size real estate projects from prestige investors have changed the face of Quang Ninh in recent years, such as Sun Premier Village Ha Long Bay (Sungroup), Vinpearl Halong Bay Resort, Vinhomes Dragon Bay (Vingroup), Green Bay Village, Citadines Marina Halong (BIM Group) and FLC Ha Long complex (FLC Group), etc.
Although there has presence of many property projects, real estate experts assessed that supply sources are considerable lower than demand. Almost all mid-end and premium apartments have been purchased, with high rates of successful transactions. Because when Hạ Long – Hải Phòng highway was put into use on September 1, 2018, the population from the neighboring provinces moving to Quang Ninh increased very fast, pushing up demand for housing and real estate investment here. For example, BIM Group’s Citadines Marina Halong project with 100% of apartments facing the bay have been quickly occupied 60-70% of units after being put up to market. 3)
Besides the vibrant activities of apartment segment, there is a strong growth of land investment here, especially in Van Don District which is in the pending approval phase to become a Special Economic-Administrative Zone. According to the report of the Van Don District People’s Committee, from the beginning of this year, the district has completed more than 1,000 transfers of land use rights, mainly in Ha Long, Dong Xa, Doan Ket va Dai Xuyen communes. Surveys showed that the prices of land traded rose 5 to 10 times, depending on the area, as people anticipate the bright economic future of the area. 4)
Ha Long City – the magnet for property investment
Wonderful scenes, the fast increasing number of tourists and residents, the development of many important infrastructure projects and the attraction of many big investors have been the favorite conditions to stimulate the demand for property in Hạ Long City, making this place a hot spot for investment in real estate market. Most of property investors tend to pour money into villa, resort, condotel projects because of tourism growth, thus there is a lack of supply of mid and high-end apartments for residents and immigrants from other provinces.
The statistics of the Việt Nam Real Estate Association showed that in the first half of this year, most middle and high-end apartment projects in Ha Long had a high volume of successful transactions. According to local property trading floors, there were some 400 successful transactions in the first quarter of this year, 50% of which were the trading of apartments and the remainders were divided for shop house, villas and town houses.5) Moreover, total successful transactions in the second quarter of 2018 reached more than 1,000 transactions. Some projects successfully sold out up to 95% of the units.6)
In terms of price, from August, 2018, even some projects have increased the prices up to 30%. It is expected that from now until the end of the year, the number of investors pouring here will also increase strongly, affecting the real estate market in Quảng Ninh Province.
Mid-end apartments in the bustling tourism city have in recent years attracted significant attention of home seekers and investors from Ha Noi and neighbouring provinces. Young families now tend to choose apartments over houses because of reasonable prices, good living environment, modern facilities, security and standard planning.
A property investor from Ha Noi said that Ha Long’s apartment market was attractive because the supply was still limited while demand was high. It was not only easy to lease apartments here but the return from leasing was also quite good and stable. Furthermore, the apartment projects also benefits from the developed infrastructure of the urban area with a number of component projects finished and put into operation such as Halong Marine Plaza, Green Bay Towers, Green Bay Premium, Sunrise apartments, Coral townhouses and Little Vietnam shophouses.7)