Phu Quoc real estate market forecast to grow, driven by upgrade into first island city

The real estate market of Phu Quoc in the Cuu Long (Mekong) River Delta of Kiên 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 Nguyen Manh Ha, Deputy President of the Vietnam Real Estate Association, 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.

Phu Quoc real estate market forecast to grow, driven by upgrade into first island city

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.

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

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 a high-speed ships from Rạch Giá City and Ha Tiên Town to Phu Quoc and flights from Ha Nội, HCM City, Cần Thơ and Vinh to the island.

According to Nguyen Van Dinh, General Secretary of the Vietnam Association of Realtors, 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 VND100 – 400 million per sq.m. In other areas, the prices fluctuated around VND20-50 million per sq.m.

Dinh said that 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 Pham Thanh Hung, deputy president of the Vietnam Real Estate Club, it is neccessary 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 that 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 ten 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 VND17 trillion 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 VND20.5 trillion, 20 of which came to Phu Quoc.

VNS

Night market in Phu Quoc Island District

Night market in Phu Quoc Island District

Phu Quoc Island District in Kien Giang Province is not only famous for its pristine and poetic beaches but also attracts many tourists thanks to its night market.

 
 

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