Tourism and infrastructure upgrades fuel Quang Ninh property market

Van Don International Airport and surrounding infrastructure projects are expected to add fresh impetus to Quang Ninh's real estate growth.

Fertile land

Nguyen Hong Son, head of the consultancy services division from real estate service provider Savills Vietnam’s Hanoi branch, said that Quang Ninh’s real estate market is divided into three key areas. They include Ha Long city, Van Don district, and several newly-emerging areas such as Mao Khe townlet and the provincially-governed cities of Uong Bi and Mong Cai.

Ha Long city and Bai Chay ward have been attracting major interest from domestic leading real estate firms, including Sun Group, Vingroup, BIM group, and FLC Group.

These areas have also gained attention from foreign investors such as Dubai-based property developer Nakheel. 2018 saw the areas enjoy strong growth buoyed by increased tourism and significant infrastructure improvements. This followed steady growth seen in previous years.

Furthermore, Van Don emerged as the most promising investment destination during 2018. Recent infrastructure upgrades, most notably the inauguration of Van Don International Airport, have triggered a fresh wave of real estate investment in the district.

A number of other promising developments are also mooted for the district. Quang Ninh has even set a target of turning Van Don into the province’s financial, tourism, and cultural centre by 2030. This is in addition to the district’s projected growth into a special economic and administrative zone in the future. 

In the real estate market, shophouses are increasingly in demand and Quang Ninh is not an exception to the trend.

A large number of real estate projects ranging from housing, urban areas, to commercial tourism categories cover shophouse products.

These projects are located in areas expected to benefit from tourism growth and additional trading activities. Quang Ninh’s tourism sector has experienced robust growth in recent years. Indeed, last year the province served over 12.5 million tourists.

Ha Long Ocean Park in Bai Chay ward, the tourism port of Tuan Chau island, and other tourist attractions located near Van Don International Airport are expected to leverage the upcoming growth of the shophouse sector.

Differentiation is needed

Nguyen Hong Son, head of the consultancy services division from real estate service provider Savills Vietnam’s Hanoi branch.

Quang Ninh’s real estate market is expected to remain growing in 2019, but each area and sector will grow at different rates, Son from Savills noted.

The housing sector will remain steady, centred on local residents and investors, while properties in relation to tourism are forecast to attain strong growth amid increasing tourism activities and diversified tourism products. As a result, hotels and apartments for rent will be the biggest benefactors.

The supply of tourism properties in Ha Long remains large. Though the city has recently seen impressive tourism growth, there is no guarantee that all the projects will be successful. The successful implementation of projects depends on the capacity of investors, relevant risks, and the possible added value these projects could bring about.

Differentiation is needed to create different values among various projects, thus standing out from customers and developers.

Investors also need to focus on improving the quality of their projects, instead of eyeing quantity and the value that could be earned from operating the projects, the Savills expert suggested.