Second homes in Phu Quoc attract more investors
Second homes in Phu Quoc attract more investors
As the southern province of Kien Giang has chosen tourism as the driver of the local economic growth for Phu Quoc and a focus for investment in the coming period, many big developers have poured capital into the island, supplying to the market high quality resort real estate products.
Opportune time for investment
According to the report released at the end of March 2016 by the Phu Quoc Working Group under the Southwestern Regional Steering Committee on the two years of implementing special policies to develop Phu Quoc island, in the past two years authorities of the province approved 65 projects with the total land area of 1,709 hectares. Up to now, the island has attracted 236 projects with the total land area of 10,179ha and the total investment of VND311.8 trillion ($14 billion).
The working group has recently proposed the National Assembly pass the strategy to turn Phu Quoc in a special administrative and economic zone with even more and better incentives. According to an article published on the Financial Times, now is a good time to invest in Vietnam’s real estate, and that this market is receiving a lot of attention from investors from Hong Kong, Singapore and the US. In addition, resort properties in Vietnam has competitive price and is of a wider variety compared to other locations such as Phuket in Thailand, Sentosa in Singapore, Bali in Indonesia and Boracay in Philippines.
Pham Ngoc Anh, general director of Ban Mai JSC in Hanoi, said that after hearing about the project and reading information on the potential for development of Phu Quoc, even though she was really busy, she went on a trip to the island to see with her own eyes the island’s potential for tourism development. Then she decided to buy a seaview villa in Premier Village Phu Quoc Resort developed by Sun Group.
“I was totally convinced when I came to Mui Ong Doi, where Sun Group built Premier Village Phu Quoc Resort. Two sides of the villas have a view of the sea,” Anh explained.
Long-term profitability
At the conference to introduce the project to Singaporean investors in the beginning of this year, Phylicia Ang, executive director of Savills Singapore said Sun Group’s Premier Village Phu Quoc Resort was like the heart of the tourism site.
The price of resort properties in Phu Quoc is still low compared to similar products in other countries. The reason, according to experts, is that it’s only the beginning of a period of explosion in the demand. Therefore, the market may see a rise in price in the future as Phu Quoc is on its way to become Vietnam’s first special administrative and economic zone by 2020. Moreover, Phu Quoc is blessed with very pleasant weather, with no storm ever, so the real estate is likely to be rented by tourists for about 11 or 12 months a year, a lot higher than the figure at other northern coastal cities and provinces.
These explain the appeal of villas in Premier Village Phu Quoc Resort since the day the project was announced. Moreover, owners of the villas receive 85 per cent of the profit from renting their villas, and the amount is not going to be lower than 9 per cent of the price of the villa. This committed rate is very competitive so this investment channel is more stable than other channels.
At the sales launch a lot of investors including those from Japan, South Korea and Singapore said that the price of a villa at the resort was even more attractive given the stable income that it could bring to the owners.
