Investor foresees huge profits from property development
Sombath Leasing Co., Ltd. is investing millions of dollars to turn 32 hectares of land in Xaythany district, Vientiane, into residential housing and land plots for sale.
The company envisages massive gains from its investment due to the continuing rise in the price of land and housing.
The project is located in Phasouk village and is about 32 km from Vientiane city centre.
Company chairman Mr Sisombath Philavong said the purpose of the Ban Nai Fan development is to provide low income owners with affordable housing.
The project will see the site divided into 467 plots, with some to be built on and others to be sold as undeveloped land. Construction is underway and the company is building roads. The road network is 70 percent complete.
The development will incorporate electricity and water installation, paved roads, a school and a market. Houses will be built after the roads are finished.
Company director Mr Van Phonxaya said they will first build model homes so that potential buyers can choose their preferred style.
People can also build a home to their own design, but it must pass inspection by the company. This is to ensure that pro perties are appropriate for the community and that house prices will be maintained when it comes to selling them, Mr Van said.
The project began in the fourth quarter of last year and so far about 33 percent of the site has been sold.
Mr Sisombath expects that all of the properties will be sold within three years.
The real estate market in Laos is growing in parallel with population growth. While land in the capital is limited, the population is increasing every day.
The company chairman is confident that the development will be successful and said it was not necessary for people to have enough money to buy. If they have some money they can own property here. Other people can also do business with the company such as buying plots of land or homes here, and if the price of the property rises they can sell their property and make a profit.
When this development is complete, the company plans to carry out similar projects in the area of the 450 Year Road and Xoknoi and Xokyai villages.
Mr Sisombath said the Ban Nai Fan development was likely to be successful because of its proximity to the country's main transport artery, Road 13 South, which links the north and south of Laos.
He predicted that the government would turn this road into a four-lane highway and noted that the planned new Vientiane International Airport will be built in this area.
In addition, foreign investors from the region such as China are investing heavily in real estate in Vientiane's economic zone.