High potential for urban real estate in Phu Quoc’s economic zones
High potential for urban real estate in Phu Quoc’s economic zones after the pandemic
As the pandemic is gradually brought under control in Vietnam; the country is emerging again as a safe destination for tourists and investors; especially in emerging economic zones like Van Don and Phu Quoc, which both offer many advantages; such as stunning nature and beautiful scenery, over traditional property markets.
The potential for urban real estate is said to be re-ordered in the time coming. Anticipating the future of urban town property, economists said that emerging markets will be the destination of investors; thanks to the fresh and countless opportunities that these locations offer over traditional ones.
Thus, most domestic and foreign investors pay special attention to Van Don and Phu Quoc as both of these locations; come with high potential in tourism development thanks to their infrastructure and tax incentives.
Most of the larger real estate developers like Vingroup, CEO Group, Sun Group, and FLC Group have already set foot there along with some billion-dollar projects, which are expected to change the face of these areas in the near future.
In addition to already existing projects, numerous other ones have been put in the pipeline; such as MEYHOMES CAPITAL PHU QUOC (An Thoi ward, Phu Quoc) of MEYLAND with an investment of VND832 billion ($38 million); which will include many shophouse, minihotels and villas.
Le Xuan Nghia, former vice chairman of the National Financial Supervisory Commission; believes that “the evolution of Van Don and Phu Quoc can be compared to Singapore; which was also a fishing village up to the 19th century and has developed well thanks to proper policies and investment.”
Nghia added that “Tourism property; particularly in these two special economic zones will certainly evolve and their prices will sharply increase.”
Furthermore, Nghia pointed out that Phu Quoc’s real estate market already develops significantly. As such, fast and sustainable development over the last years has enabled Ngoc Island to become the promised land for many investors. Additionally, Phu Quoc is set up to become a multi-sector tourism economic area, including entertainment centres with a casino and the development of several resort properties.
According to an expert of the Central Institute for Economic Management (CIEM),Phu Quoc has six particular advantages to develop urban real estate, including the establishment of the Phu Quoc Economic Special Zone Management Board, its synchronous planned infrastructure, transportation development both by sea and air. Moreover, Phu Quoc is not only a new natural destination but can also utilise the experience of other localities in addition to incentives in policies.
Meanwhile, the Chung also highlighted numerous advantages of Phu Quoc; such as the most beautiful beaches in the world, favourable transport connecting to many provinces and others countries; and pre-existing economic relationships with real estate giants like Sun Group, Vingroup, and CEO group.
According to Kien Giang Province Tourism Department; Phu Quoc has attracted so far 256 tourism projects, with a registered capital of VND327 trillion ($14.22 billion). Of the 178 projects that received the investment license, 38 are currently under construction while 40 have been put into operation.
The number of visitors arriving at the island has increased robustly; with 2.26 million reported in the first half of the year, an up of 35.9 per cent on-year. International tourists have also grown stoutly, recording a rise of 35.5 per cent on-year with 392,000 visitors.
Another recent project is a smart and eco-green presently developed by Meyland in the South of the island; to be brought to the market about end of 2021 upon its completion.
The completion of the Meyhomes Capital Phu Quoc project, with around 1435 shophouses and minihotels, villas to be launched in the coming time.Llike a missing piece in the real estate picture of Phu Quoc, the urban real estate. It is promised to turn An Town town, Southern area into a shopping and entertainment hub.
Thus, investing in urban real estate is a considerable choice, especially in Phu Quoc is preparing to go to the coastal city in the near future. Besides that, Phu Quoc and Singapore has many similarities to become economic zones such as both having the same population, land area, development orientation in tourism, ports and the government’s supporting in economic special zone development. However, Phu Quoc is coming with a lot of natural advantages like sightseeing, climate, long beaches, and safety.
Nguyen Manh Ha, chairman of the Vietnam Real Estate Association, said that tourism is to become one of the key economic sectors of the country. By 2025, Vietnam estimates to receive 35 million international arrivals and 120 million domestic arrivals at least. The total revenue from tourism is projected to reach $80 billion with a growth rate of 13-14 per cent.
“In the near future, the coastal urban-related property market has an abundant room left for development,” said Ha.