The real estate market in Lao Cai Province is not developed, but has good potential, leading property services provider Savills Viet Nam Co Ltd said on Monday.

A view of Sapa Town in Lao Cai Province. 

Do Thu Hang, associate director, research, Savills Ha Noi, said that Lao Cai’s property market has great development potential in segments such as villa resorts, five-star hotels and condotels as its infrastructure has developed and improved strongly while Viet Nam has regulations on permitting foreigners to own property in the country. 

The Ha Noi-Lao Cai Highway, the various entertainment facilities and the new airport are among the infrastructure projects that have made a difference in the province.

Lao Cai City and Sa Pa, a famous tourism town in the province, have attracted many large property investors, including Bitexco, Sun Group, Vingroup, Thien Minh Group and Sapa Land, who have developed shopping centres, entertainment areas, shophouses, cable cars and luxury hotels. But Lao Cai City has one five-star hotel, while Sa Pa has none, she said.

In the future, Sa Pa will have five-star hotels and resorts such as Silk Path Grand Resort & Spa Sapa, Mgallerry Sapa, Bitexco Resort, Suoi Hoa Resort, Lao Chai Spa Resort and Thung Lung Vang Resort.

“Lao Cai has lacked luxury and modern property products, though it is very scenic and has good climate. It will face strong competition in attracting investors and customers from the north, which has large property markets such as Quang Ninh, Vinh Phuc and Hai Phong, and the central region such as Da Nang, Hoi An and Hue,” Hang said.

The province must make systematic plans to develop their real estate market well, she said. 

VNS