The Multi-Faceted Perspective of Hai Phong’s Apartment Market and the Paradox of Yield
Hai Phong has long affirmed its position as a leading sustainable economic development locality, with a double-digit GRDP growth throughout the past decade (11.07% in Q1/2025 compared to the same period). A series of large-scale industrial park and economic zone projects are being implemented, boosting the city’s appeal.
Seizing this trend, real estate enterprises have quickly deployed many projects, making the apartment supply in Hai Phong abundant, with about 20 projects of diverse scales present in the market. The rapid increase in supply, in the context of a temporary lag in the migration of high-skilled experts and technicians corresponding to the pace of industrial infrastructure development, has created a local “oversupply” feeling. This has led to sub-optimal rental yields as demand has not yet caught up.
Meanwhile, bank savings, with stable interest rates of 5-6% per annum, are considered a safe investment form with quite good returns. When weighed, the yields from apartment rental exploitation or even the short-term price appreciation potential of some apartment projects in Hai Phong are only comparable to or somewhat “weaker” than bank deposits.
This is a paradox. According to basic investment principles, higher-risk investment channels (such as real estate) must be accompanied by significantly higher expected returns than safe channels like bank deposits.
However, these irrationalities do not last long and will be self-regulated by the market. We need to recognize that the market is in the early stages of a new cycle. There are many factors indicating that apartment investment yields will soon regain their rightful position.
First, the interest rate for mobilization is forecasted to decrease. The Vietnamese government is promoting private economic encouragement policies, including injecting credit into the economy. At the end of February, the State Bank “whistled” commercial banks that were about to increase mobilization interest rates, and interest rates immediately cooled down.
In addition, the US Federal Reserve (Fed) has also signaled the possibility of interest rate cuts in the coming sessions.
Second, and perhaps the most breakthrough factor, is Hai Phong’s growth potential. The future merger with Hai Duong will turn Hai Phong into a metropolis with a population of about 4 million, second only to Hanoi and Ho Chi Minh City. With the position of being the economic and political center of such a large urban area, along with maintaining double-digit economic growth, the demand for housing, especially high-quality housing, will soar.
Investors need deep insights and clear strategies as the Hai Phong real estate market undergoes changes. Source: Stock
All these changes are happening at an increasingly rapid pace, and the real estate market will surely reflect these macro shifts, perhaps within just a few months or a few years.
Investment Choices During the Market Adjustment Phase
In the context of the apartment market’s dynamics as analyzed, choosing a project to invest in requires investors to have deep insights and clear strategies. This is not a time for scattered investments but a moment to focus on quality and long-term potential.
So, what are the key criteria?
First, the project’s complete legal status is a prerequisite. A legally transparent project not only ensures investors’ interests but also reflects the professionalism and reputation of the investor. Next, the investor’s history of legal compliance should also be carefully considered.
Located in the center of Hong Bang, Gem Park easily connects to Thuy Nguyen and Hai Phong’s entertainment destinations, becoming the ideal choice of many investors. Source: N.H.O
Second, whether for living or long-term investment purposes, the quality of construction and the stability of the work are essential factors. A practical event has provided a valuable lesson: the storm Yagi landed in Hai Phong and Quang Ninh in September 2024. This was a harsh “test” of nature for the quality of construction works. Projects that stood firm through the storm, ensuring the safety of residents and property, deserved high praise and trust.
A testament to this is The Dragon Castle, a project by N.H.O (National Housing Organization) in Quang Ninh. In the face of the destructive power of Storm Yagi, the project recorded no significant losses, bringing absolute peace of mind and satisfaction to its residents. This superior robustness and quality are not coincidental but stem from a sustainable development philosophy that puts residents at the center.
In Hai Phong, the Gem Park project being developed by N.H.O also inherits and promotes this philosophy. With 13 years of experience in real estate development in Vietnam, N.H.O deeply understands that legal status is the core foundation of an apartment project. Throughout the journey of creating 18 projects nationwide, N.H.O has always prioritized legal compliance, building a solid reputation, and becoming a trusted choice for customers.
Gem Park’s standout feature is its multi-layered, multi-experiential design, offering a rare modern and convenient lifestyle. With its unique multi-layered architecture, residents enjoy a flexible living space, from cozy apartments for small families to spacious areas for those who relish comfort. Moreover, the project integrates a range of internal utilities, from entertainment and shopping areas to green spaces, creating an all-in-one ecosystem where every day brings new experiences. Gem Park aims not only to provide a quality living environment but also to ensure sustainable investment value, anticipating Hai Phong market’s new growth cycle.
The paradox of apartment investment yields compared to bank deposits in Hai Phong today is only temporary. For investors with a long-term vision, this necessary pause allows for the evaluation and selection of genuinely quality products from reputable investors. When the market adjusts and the macro factors take effect, investing in the early stages of a new growth cycle promises to deliver well-deserved outcomes.
Investor: N.H.O (Korea) has been present in Vietnam for over 12 years with many projects across the North, Central, and South regions.
Address: 2A Hong Bang, So Dau Ward, Hong Bang District, Hai Phong City
Website: gemparkvn
