Residential land development emerges as booming new business
Residential land development emerges as booming new business
Developing empty land into residential areas for sale has emerged as one of the thriving new businesses in the capital and it is expected to boom this year, according to many pundits.
From Nahai village on Thadeua road in Hadxaifong district to Nonsengchanh near the National University of Laos campus in Xaythany district, earthmovers can be seen hard at work clearing and levelling land.
Over the next few months, the empty land in these two districts, which are located some 20 km outside of the city centre, will become new residential areas of Vientiane.
The investors expect to sell the land to local people at prices of between 175,000 kip (US$21) to 500,000 kip (US$62) per square metre, depending on the location and the infrastructure on the land.
Real estate developers said that demand for residential land in Vientiane has been rising rapidly over the past five years, thanks to the government policy to open the country for foreign investment.
The establishment of businesses in the capital has encouraged labour movement from the countryside into the city, meaning demand for accommodation is high.
They also said that the government policy to relax restrictions on the inflow of foreign workers to Laos has also caused higher demand for accommodation and land.
The government has passed legislation allowing foreign investors who invest more than US$500,000 in Laos to own a block of residential land up to 800 square metres in .
The establishment of mega investment projects which have required other residents to relocate has also increased demand for land.
Sansabai Property and its partners are one of the active firms which have seen success in residential land development after commencing operations a few years ago.
The companies are now developing their second land development project in the capital after witnessing the increasing demand for residential land.
They now sell a 200 square metre plot of land at a price of more than 100 million kip.
The land has access to electricity, water supplies and other services. The company is offering land buyers to pay in cash upfront or by installment plan. Project officials told Vientiane Times that the land development concept is not different from what has happened in other foreign countries. They said that land developers play an important role to help the government to expand the urban area.
Another land developer in Nongtaeng village said that she purchased a rice farm from villagers and decided to develop the land into a residential area.
She said that land development is one of the new businesses which are expected to boom over the next few years.
“Don't think too much when investing in land. You never make a loss from purchasing land. It is different from other goods as it will never be reproduced,” she said.
She said that land sales are different from the past and that land sellers can get better prices if they develop infrastructure on the land which will add value to its price.
She said that she would make more than a 50 percent profit if all the land plots in her residential project are sold.
vientiane times
