Sun Group’s Phu Quoc portfolio cemented on Singaporean radars
While real estates in Singapore, especially in Sentosa, are always hot and have seen their price rise by 300% in only seven years, Singaporean investors are increasingly turning to new markets with high growth potential, such as Phu Quoc in Vietnam.
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From Sentosa to Phu Quoc
In Asia, Singaporean real estates rank second after those in Hong Kong in terms of price.
They have been a magnet to investors for many years. However, investors have recently started shifting focus to other regional markets to expand their portfolios.
The reason is that real estates in Singapore are getting more and more expensive, despite the Singaporean government’s intervention policies, such as tightening the conditions for uncollateralised borrowing to buy real estates, and raising property ownership tax.
Moreover, investors are paying a 7% tax on the transaction value of their second property in Singapore, and a 10% tax on the third.
Singapore ranks third in the world in the number of rich people, according to a Knight Frank report.
As Singaporean investors are the most nimble, these exogenous reasons, together with the hope to own prime land plots, have pushed the flow of capital outwards.
Besides traditional markets, such as Phuket and Bali, Phu Quoc Island in Vietnam has become a new favourite destination for this capital flow.
Phu Quoc, with its white, sandy beaches and blue coast, convinces any tourist.
On the other hand, international standard villas and condotels are being pulled up, turning the most beautiful island in the Gulf of Thailand into the new bright spot on the map of Asian real estate investment.
Together, these factors have attracted the attention of Singaporean investors.
Sam Ong, real estate agent at Savills Singapore, said Sun Group’s Premier Village Phu Quoc Resort and Premier Residences Phu Quoc Emerald Bay in the South of Phu Quoc Island are unique thanks to the beauty of the surrounding ocean blue and mesmerising white sand.
He said Phu Quoc is on its way to becoming Vietnam’s Sentosa, with its prime geographic location, natural beauty, and unfathomable tourism potential.
On the other hand, Sun Group’s South Phu Quoc portfolio also leaves similar projects in Singapore in the dust price-wise.
In Sentosa, two-bedroom beachfront condotels of about 110 square metres go for at least US$3 million per unit (US$27,000 per square metre). The hottest products, beachfront condotels, already at US$7 million, continue to be scarce and getting more costly, while villas in Sentosa cost about US$11 million.
Meanwhile, Sun Group’s villas and condotels of the same segment are much cheaper. Villas in Premier Village Phu Quoc Resort are only US$1-2 million each. Condotels in Premier Residences Phu Quoc Emerald Bay cost US$150,000 -1 million.
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A good developer is key
Ong said that the capital flow’s shift away from Singapore to regional markets did not take place easily.
“Singaporean investors are attracted to high growth prospects, but prefer to play safe,” he said. “Therefore, only projects with international quality and prestigious developers that have been recognised worldwide can convince them.”
Michael Leong, an investor, joined the September 27 conference at Royal Plaza on Scotts Hotel in Singapore where Sun Group showcased its vacation real estate projects on Phu Quoc Island. Leong said the developer’s prestige is a key factor.
“We need to know how famous the developer is and what other products they have. Knowing that Sun Group has developed world-renowned hospitality real estate, I am totally convinced,” he said. “I am looking to expand my portfolio and the products introduced here today are very alluring.”
Experts said that Singaporean investors are paying more attention to hospitality real estate in Vietnam because of the quality of construction, the prime location, and the competitive prices as well as the good, sustainable profit rates on offer.
On the other hand, many of Sun Group’s products reach or even raise the bar for international standards. Timo Schmidt, head of International Residential Sales at Savills Vietnam Ltd., said he is impressed with the group’s work/developments. “Sun Group holds their projects to high standards and are very attentive to detail,” he said.
With quality, class, and distinction, Sun Group’s products make a good impression on international investors and contribute to increasing the appeal of real estates in Vietnam.
