After a period of turmoil as the local authorities banned plot allocation and the Law on Special Administrative-Economic Units was delayed for further revision, the real estate market in Phu Quoc gradually stabilized. There is no longer overnight price fever nor flashy trading.
But unlike its quiet appearance, investment flows are silently pouring into Phu Quoc where previously, investors took risks to buy and sell land for profit. They now target property with high profit and stability.
Leverage of Phu Quoc real estate
Tourism is considered as a leverage of property, and as a result, while Phu Quoc tourism continues to boom, investors believe there is no reason to stop the real estate market in the island to make a breakthrough.
Statistics showed that Phu Quoc has topped the country in terms of tourism’s growth in recent years. The Kien Giang provincial Tourism Department said the island welcomed over 2.9 million tourists in the first nine months of this year, a year-on-year rise of 30%. This increase boosted particularly by foreign tourists, undergoing a surge of 421,719 tourists, up nearly 79% over the same period last year.
Real estate market in Phu Quoc is developing thanks to tourism
The tourism sector earned 4.216 trillion VND, a 51.5 % increase compared with last years figures.
Supporting a long-term strategy, the Prime Minister approved plans to develop Phu Quoc into a high quality tourism resort center in the region and the world, offering outstanding incentives, including visa exemption for foreign visitors within 30 days, and corporate income tax incentives.
Comparing the other specialised economic zones Van Don and Bac Van Phong, which are still in the early stages of growth, infrastructure in Phu Quoc has been built up well, creating a foundation for tourism to further develop. It’s hard to find a district-level locality invested in infrastructure as much as Phu Quoc. Tens of trillion VND from the State budget have been poured into building main roads around the island, a new airport and pulling electricity from the mainland to the district.
In reality, it’s hard to find a place with tourism potential and advantages like Phu Quoc. The island boasts a 150km coastline with pristine beaches and primitive forests. It’s only a 1-2 hour journey from other tourism centres and can compete with other hot spots in Southeast Asia, like Phuket and Bali, in terms of tourism potential.
Destination for investors
Phu Quoc island has become a magnet, drawing investment in tourism real estate. As many as 370 trillion VND have been waiting for investment in the island. When obstacles were removed, investors did not hesitate to heavily invest in building thousands of hotel rooms and resorts, turning Phu Quoc into a tourism paradise.
The district’s tourism sector is expected to be even more attractive when more products and international air routes are launched. The Hon Thom recreational area in the south and a casino in the north are believed to lure more visitors to the island.
Mövenpick Resort Waverly Phú Quốc – a spotlight for investment
In that context, the Phu Quoc airport is undergoing expansion to double its capacity; readying the island for the opening of more international routes. Besides established chartered flights from the UK, Italy, Northern Europe, Russia and China; Bangkok Airways has launched air routes from Bangkok, while Vietjet and Air Asia are preparing to launch routes from Seoul and Kuala Lumpur. This increase in routes, coupled with pre-established presence of hospitality giants such as JW Marriott, InterContinental, Mövenpick, and Novotel, in Phu Quoc, its attraction to international visitors is expected to soar.
Following this increase of attraction, Phu Quoc draws a lot of big investors, including Sun Group, VinGroup, MIKGroup and BIM Group. One of their projects is the Mövenpick Resort Waverly Phú Quốc which has become a target of individual investors.
