Residential real estate booms in Vientiane suburbs
The construction of residential property in the suburbs of Vientiane is continuing to grow with many developments underway, while the government seeks to attract additional foreign investment.
Managing Director of the Real Estate Agency Rentsbuy.com, Mr Houmphan Sayalath, yesterday said that investment in real estate in Vientiane city centre had reached its peak, which is driving development outwards to the suburbs.
At present only apartments, condominiums and offices under the management of large scale projects are under construction in central Vientiane.
But Mr Houmphan said there are other locations about 10-15 kilometres outside the city centre such as Dongmakkhai, 450 Year Road, and Donnoun which are attracting real estate interest, especially for future sale, rental or payment plans.
Last year, real estate investment drew both domestic and foreign investors, in particular from China, South Korea, and more recently Taiwan.
Mr Houmphan said the fact that Laos joined the Asean Community at the end of 2015 should continue to attract investors as investment flows increase throughout the entire region.
The government's policy initiated in 2011 to encourage local residents to use their land and property as a source of funds has helped to stimulate the current real estate boom.
However, Mr Houmphan pointed out that businesspeople and students are coming from the provinces in considerable numbers to live or do business in the capital.
He said they are a major target to push the growth of the real estate market over the next five to 10 years, especially in the suburbs.
Presently, a number of companies are building houses or dividing land plots for sale in response to Lao people's rising purchasing power.
More Lao people are now interested in paying for houses in installments, which is further driving real estate development in the suburbs.