80% of Phu Quoc real estate buyers are from Hanoi
Of nearly 1,000 real estate products, including land, beachfront villas and apartments sold on Phu Quoc Island so far, 80% have been sold to investors from Hanoi and 15 percent to buyers from HCM City, according to Savills Vietnam.
The latest report shows that the island was the busiest emerging real estate market in the last four quarters.
The land has attracted investors in the last few years. In 2012, only 120 land plots were offered, while in 2015, more than 2,500 products in different segments were available, including apartments, beachfront villas and land.
By the end of 2015, the transactions of 965 products, including 165 land plots, 710 beachfront villas and 90 apartments, were wrapped up. The figure shows beachfront proves to be the leading product, though the selling price was sky high at between US$550,000 and US$1 million.
Meanwhile, US$80,000-120,000 buys land products there. Apartments are offered at US$70,000-220,000.
Savills Vietnam, a real estate service provider, noted that 80% of transactions were made by investors from Hanoi, while only 15% of investors were from HCM City.
Investors have accepted to pour money into the property on Phu Quoc Island because they are attracted by the investors’ prestige, attractive leasing programs, high promising profits and sales promotion campaigns.
Most investors were Vietnamese as of the end of 2015. Strong brands like Vingroup, Sungroup, M.I.K, LDG Group, CEO Group and 99 Mountains all have injected money into the projects there. Vingroup, the largest real estate developer, is leading the market with 76% of market share.
According to the Phu Quoc district Management Board, 22 projects had been put into operation by the fourth quarter of 2015. The projects cover total area of 1,286 hectares and have investment capital of VND25.811 trillion.
Meanwhile, the other 14 projects are under construction with total area of 733 hectares and investment capital of VND11.383 trillion, including the Phu Quoc International Airport, 905 hectares and VND3.076 trillion.
Savills noted that demand in Phu Quoc had soared in the last 2-3 years because of several reasons.
First, the local authorities offered attractive incentives, including land rent exemption and preferential corporate income tax of 10% instead of 22%.
Second, infrastructure will develop in the near future with seaport, airport, backbone routes, underground cable and cable cars.
Third, the national resources are abundant with 10 wonderful beaches (150 kilometers in length).