Rich land for real estate investment
Bac Ninh has always been at the top of the country for economic growth, averaging at 10% annually. Its GDP per capita is constantly increasing from 3,000 USD per person in 2013 to 6,000 USD per person per year now, 2.5 times the national average.
Attracting FDI critically contributed to this growth in real estate with dozens of large and small projects having sprouted up. By the end of August 2018, the province had 1,260 FDI projects in place, including especially large project plants of leading organizations, such as Samsung, Canon, Hong Hai, Microsoft, etc., making a total investment capital of up to 16.5 billion USD.
Strong development of urban infrastructure has created a vital foundation for real estate market growth. Big names like Vingroup, T&T, Him Lam, and FLC, together with local businesses including Nam Hong, Hanaka Group and other smaller investors have shown Bac Ninh real estate market’s exceptional appeal.
According to regularly updated data of Vietnam Association of Realtors, Bac Ninh is one of the highest growing real estate markets in the country, not only in project quantities, but also liquidity and prices. Average growth rate of all segments are from 200% to 250% per year, and the prices have been doubled since 2016. At some prime locations with completed infrastructure and entertainment centers, prices can even be tripled or more.
The city of Bac Ninh is not the only place in the province witnessing dynamic growth. Tu Son town and Dong Ky village are two great examples of areas inheriting the price rising effect. Dong Ky is a famous trade village for traditional wooden furniture making many people interested in investing here.
Project of Hanaka in the town of Tu Son
The market will keep heating up
As stated in the market report of the third quarter of 2018 by Vietnam Association of Realtors, Bac Ninh recorded rapid growth with numerous projects launched into the market. In the third quarter, 43 real estate projects were offered for sale, especially land plots in new urban areas, almost twice as much as the first quarter.
Unlike other cities, provinces where excitement only occurs in central districts, Bac Ninh develops diversely and evenly throughout all areas. According to Vice Chairman cum General Secretary of Vietnam Association of Realtors Nguyen Van Dinh, Bac Ninh has great advantages like connected infrastructure, convenient services, commercial centers, especially when Bac Ninh faces great opportunity of becoming a central city in 3 years. To achieve this goal, the infrastructure will be heavily invested in.
General Director of Dreamhome JSC Do Xuan Lam shared the same view: the recent strong momentum of real estate in Bac Ninh accurately reflects the reality and investors’ expectations. Markets in big cities like Hanoi is saturated with abundant supply, prompting investors to look for new opportunity.
“Reality shows that Bac Ninh’s real estate has high liquidity and is concentrated in areas with developed infrastructure, like the city center or urban areas surrounding Yen Phong industrial zone, Tu Son town, etc.,” Mr. Do emphasized.
Despite strong growth in recent time, investment level in Bac Ninh’s real estate is modest and not every project has high yield. Because the market is still new, income per capita is increasing, thus investors need to select projects with clear legality and reputable distribution to ensure optimal profitability.
