Hai Phong real estate is "bumper" thanks to the number of tourists and business

Hai Phong real estate is "bumper" thanks to the number of tourists and business

2018 is considered a prosperous year of Hai Phong real estate market with bustling activities in many segments. In particular, the hotel and service apartments segment has been improved and maintained in a stable manner thanks to the contribution of a large number of tourists to Hai Phong.

According to Hai Phong Statistical Office, in 2018, the city welcomed 7.8 million tourists, an increase of 12% year-on-year. Research by Savills Vietnam shows that Hai Phong now has a total of 14 3-5 star hotels, providing about 1,400 rooms.

In 2018, the average occupancy increased by 5 percentage points year on year. The average room revenue of 5-star hotels is USD 63 (about VND 1.5 million) / room / night, double the 4-star segment and 4 times the 3-star segment.

Ms. Do Thi Thu Hang, Deputy Director, Head of Savills Hanoi Research Department, said that the main customers of Hai Phong hotel segment are business travelers.

"Hai Phong is not a spearhead tourism development, so the demand for relaxation is not much. In contrast, business travelers to Hai Phong have sustained growth over the years due to economic growth, infrastructure development and port industry, ”said Ms. Hang.

Specifically, in recent years, a series of works such as Ha Long Expressway - Hai Phong, Vu Yen I Bridge, Industrial Park, Hai Phong International Container Port have been completed and put into use.

Hai Phong real estate market has many potentials to develop new products.

Along with that, the economy has developed strongly in the last 5 years as well as attracting foreign investment to achieve better results. In 11 months of 2018, Hai Phong attracted US $ 2.49 billion of registered capital, ranking third after Hanoi and Ho Chi Minh City. The provincial competitiveness index in 2017 reached the 9th highest level in the country.

According to the Ministry of Planning and Investment, in 2017, Hai Phong has a leasing area of ​​about 3,000ha from 7 Industrial Parks (IP). Nomura, Trang Due Phase I and Deep C - Phase I was all closed.

In 2018, Korea's huge investments in Trang Due IP were LG Display Hai Phong with an additional capital of USD 500 million in February and LG Innotek Hai Phong added USD 501 million in August. Notably, Vinfast , Vingroup's production of automobiles and motorbikes has registered to invest 1.5 billion USD in Dinh Vu - Cat Hai Economic Zone.

"Therefore, the demand for accommodation for foreign officials, employees and experts to Hai Phong is mainly met by the hotel and service apartments segment," said Savills representative.

Also according to this unit, the serviced apartment segment in Hai Phong recorded stable operation of 16 projects in 2018. The average capacity reached 96% and the rental price reached 21 USD (about 480,000 VND) / m² / month. Average room revenue reached 20 USD (460,000 VND) / m² / month.

Ms. Hang said, serviced apartments are segments with stable operation at a good level with high capacity. The largest demand comes from Asian tenants, namely Japan and Korea, two countries with large FDI inflows to Hai Phong. This is also the object of tenants who prefer to live in the community so products of serviced apartments with design and utility style typical of a country will attract tenants from that country.

“High demand, high capacity has attracted foreign businesses to participate in this market, including two international operators who manage Grade A projects and a Japanese investor. developing a service apartment project in the future, ”said Ms. Hang.

In fact, the hotel and serviced apartment segment in Hai Phong meets a large demand of business travelers but not all. For guests with limited budget, about less than 1,000 USD / month, Hai Phong does not have suitable accommodation products.

"This situation shows the potential and the development potential of new products for this market such as apartments for sale, housing products with technology integration like Airbnb ... there are many. This is an opportunity for Hai Phong to refresh itself, in order to welcome the new trends of the market, following the domestic development markets such as Hanoi and Ho Chi Minh City, ”said Ms. Hang.

Tam An