Phu Quoc, 40 kilometres west of southern Kien Giang province, is the biggest island in Vietnam where hospitality investment has shaken up the emerging real estate sector here over the past few years.
In its latest report released on January 8, Savills Vietnam, a leading property service provider, said the hotel sector on Phu Quoc island saw a remarkable rise of 110 percent in supply from 2012-2015. Local developers, such as VinGroup, M.I.K Corporation, BimGroup, and Sun Group, make up a majority of the sector’s market share, 92 percent.
Average room rate on the island was around 153 USD per day, much higher than that in Nha Trang (68 USD per day) and Da Nang (80 USD per day).
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| Photo for illustration. Source: btrip.vn |
Some 67 percent of all hotels are located in Duong Dong Town, accounting for 48 percent of all rooms on the island.
The residential segment, which only offered 120 units, mostly land plots, in 2012, had a total of 2,500 units launched in 2015, including condominiums, land plots and villas. Most of these projects are located on the beach with great ocean views.
According to Savills, VinGroup dominates the villa segment, holding 76 percent of the market share.
About 80 percent of buyers of Phu Quoc’s residential projects come from Hanoi, followed by 15 percent from Ho Chi Minh City.
The island is seen as an ideal destination for hospitality investment thanks to support policies from local authority, such as tax exemption, alongside rapid infrastructure development, notably Phu Quoc International Airport, An Thoi Seaport and Ha Tien-Phu Quoc underground electric cable.
Other major projects are also underway – Duong Dong International Seaport and a cable car system linking An Thoi and Hon Thom islands.
Phu Quoc is blessed with stunning beaches and rich biodiversity.
The island is home to a safari park, the second largest in the world and it has got the government nod for casino development, a great advantage to attract more and more domestic and international holiday-makers.
Source: VNA