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Bac Ninh’s property market likely to be in full swing next year

The property market in the northern province of Bac Ninh is likely to continue to be in full swing in 2020 thanks to waves of investment into industrial real estate.

About 30km away from Hanoi and Noi Bai International Airport, Bac Ninh city, the provincial capital, lies on the Vietnam – China economic corriodor and in the economic triangle of Hanoi – Hai Phong and Quang Ninh. The city is dubbed by real estate investors and brokers as an emerging “dragon” among provinces to the north of Hanoi since its property market has experienced strong growth over the last few years.

In the first 10 months of this year, the city has seen the launching of 10 major projects with highlights being Him Lam Green Park, Phuc Ninh Urban Area, Dabaco Van An Urban Area, Vuon Sen Urban Area, Dabaco Lac Ve Urban Area, Khai Son City Thuan Thanh and Sing Garden at the Vietnam – Singapore Industrial Park (VSIP) Bac Ninh.

The Vietnam Association of Realtors (VARS) said in its lates report for the third quarter of 2019 that the province’s real estate market is growing rapidly with a large number of offers since the beginning of this year.

The report also emphasised that most of the projects on sale have been launched in the previous period and there are very few launch of new projects because the province has tightened control on investment licence granting.

In 2020, the local propety market will thrive as it is beneficial from the exciting waves of industrial real estate, said Nguyen Van Dinh, VARS Vice President. The supply shortage will bring more excitement to the market, he added.

Sharing Dinh’s views, other experts said with Bac Ninh’s prospects in the industral real estate, viewed among the best among nothern provinces, the local housing market will further expand as the city’s average prices of land lots have remained relatively low.

The robust infrastructure development coupled with strong foreign direct investment (FDI) flows into the city and booming industrial real estate will continue boost the city’s property market.

New investors – mostly from Asian countries like Japan, the Republic of Korea, and China – will remain interested in Vietnam’s industrial real estate, according to a report recently released by the global real estate service firm JLL Vietnam.

As many international major manufacturers are relocating from China, more investment are expected to be bumped into Vietnam, particularly five key industrial provinces in the north. Growing housing demand, which results from a surge in the numbers of migrant workers and foreigners, will also give another push to Bac Ninh’s property market, not only in the residential but also the leasing segment.

The market is being given a great chance to thrive further as Bac Ninh is looking to become a centrally-run city in the next two years. As property prices remain relatively low at present, it is forecast to keep vibrant for many years more and promise to bring great profits to investors.

A total of 135 projects have been put into operation at IPs in Bac Ninh province so far this year, raising the total number of operational projects in local IPs to 1,070.

Firms in Bac Ninh’s IPs generated over 1,151 trillion VND (49.45 billion USD) in industrial production value, exported 22.6 billion USD worth of products, and contributed 11.5 trillion VND to the state budget.

From the outset of the year, the management boards of the local industrial parks revoked investment certificates and investment registration certificates of 237 projects with total registered capital of 942.6 million USD.

After two decades, the industrial parks have become an important part of the local economy, promoting the economic structure transform, while improving the province’s capacity in production and technology transfer, enhancing production efficiency and engaging deeper into the global production chain.