Logo of Phnom Penh Post newspaper Phnom Penh Post - Phu Quoc realty market forecast to grow



Phu Quoc realty market forecast to grow

Content image - Phnom Penh Post
The current land prices in the island’s centre ranged from 100-400 million dong ($4,300-17,300) per sqm. In other areas, the prices fluctuated around 20-50 million dong per sqm. VIETNAM NEWS AGENCY

Phu Quoc realty market forecast to grow

The real estate market of Phu Quoc in the Vietnamese Cuu Long (Mekong) River Delta of Kien Giang was forecast to be robust as the island district has just been given the green light to be upgraded to the country’s first island city in March this year.

According to Vietnam Real Estate Association deputy president Nguyen Manh Ha, the upgrade into an island city would create a new push for the real estate market of Phu Quoc, especially as the island was among top tourist destinations in recent years.

Ha cited statistics that Phu Quoc welcomed more than five million tourist arrivals in 2019, a 27 per cent increase over 2018.

In 2020 when the Covid-19 pandemic heavily affected the tourism industry, the island also saw significant increase of around 50 per cent in tourist arrivals in November and December when domestic travel resumed as the pandemic was brought under control.

It was estimated that Phu Quoc received more than three million tourist arrivals in 2020.

Ha pointed out that the favourable weather conditions and beautiful scenery made Phu Quoc an attractive destination for investment in tourism property.

Another important factor was Phu Quoc’s developed infrastructure system which made travelling to the island easier and more convenient.

Ha said: “Tourism property is the most attractive segment in Phu Quoc which is oriented to become a tourism city.”

Ha predicted that the Phu Quoc real estate market would see significant increases in prices.

Economic expert Dinh Trong Thinh said that since the penetration of large developers into Phu Quoc with heavy investment in infrastructure like airport and roads, Phu Quoc was changing rapidly and becoming a tourism hub.

The developed infrastructure system also created a launching pad for the island to make breakthroughs, Thinh said.

The inland road system had very good connectivity while there were high-speed ships from Rach Gia city and Ha Tien town to Phu Quoc and flights from Hanoi, Ho Chi Minh City, Can Tho and Vinh to the island.

According to Vietnam Association of Realtors secretary-general Nguyen Van Dinh, the developed infrastructure system coupled with a favourable administrative mechanism means the real estate market in Phu Quoc would develop rapidly.

The current land prices in the island’s centre ranged from 100-400 million dong ($4,300-17,300) per sqm. In other areas, the prices fluctuated around 20-50 million dong per sqm.

Dinh said there was still large room for land price increases.

He stressed that this wouldn’t be a market bubble but would be increases in real land value because the potential was real.

According to Vietnam Real Estate Club deputy president Pham Thanh Hung, it is necessary for Phu Quoc to have innovations to develop property products of high quality, meeting international standards and setting new living standards.

Former Deputy Minister of Natural Resources and Environment Dang Hung Vo said Phu Quoc was in an investment process.

Vo believed that the land prices in the island could be two to three times higher in the next 10 years.

Still, experts said that investors should pay attention to the legality of property projects and products before making investment decisions.

The potential of the Phu Quoc real estate market was in over the long term, Vo stressed.

Recently, Phu Quoc People’s Council approved the medium-term public investment plan in the 2021-2025 period. Accordingly, more than 17 trillion dong would be raised for the state budget and land auctions to invest in the transport infrastructure system.

In 2020, Kien Giang province attracted a total of 23 projects with a total investment of nearly 20.5 trillion dong, 20 of which came to Phu Quoc.

VIET NAM NEWS/ASIA NEWS NETWORK

MOST VIEWED

  • Massive stingrays may live in Mekong’s deep pools

    US scientists have suggested that unexplored deep pools in the Mekong River in an area of Stung Treng could potentially be home to significant populations of giant freshwater stingrays, one of the world’s largest freshwater fish species. This comes as a fisherman hooked a 180

  • CCC team off on US business trip

    The Kingdom’s leading economists and private sector representatives have called on the US to renew its tax preferential status for Cambodian exports, as a Cambodia Chamber of Commerce (CCC) delegation departed for a weeklong business visit to the US, where they will meet with

  • PM takes time to meet, greet Cambodians living in the US

    After landing in the US ahead of the ASEAN-US Special Summit, Prime Minister Hun Sen was received by over 1,000 Cambodian-Americans including political analysts who welcomed him with greetings, fist bumps and selfies. Hun Sen also met with analyst Mak Hoeun, who had allegedly spoken ill

  • Khmer cinema classics back on big screen for free at WB Arena’s outdoor movies series

    On a recent Saturday evening at WB Arena, Bunsong was enjoying a tasty BBQ meal with his family after work on the long tables that had been arranged out in front of the restaurant as they watched a Khmer action movie on a big outdoor

  • PM heads to Washington for ASEAN-US special summit

    Regional and international issues and how to bring the ASEAN-US partnership to another level will be discussed at length as Prime Minister Hun Sen and his ministers arrive in Washington, DC, for a special summit on May 12-13. During the trip, Hun Sen and ASEAN

  • National Assembly refutes EU resolution

    The National Assembly (NA) has hit back at a European Parliament resolution condemning the political and human rights situation in Cambodia, calling it another display of the Parliament’s “double standards”. Key points of the resolution include a warning that the Parliament could exclude the