Latest Savills report shows coastal landed properties purchased for long-term investment or vacations.
Buyers from Hanoi accounted for approximately 80 per cent of all purchases in Phu Quoc Island’s real estate market, according to the latest Savills report on the island’s market in the first quarter, released on May 23.
Following buyers from Hanoi were those from Ho Chi Minh City, with 15 per cent. Most coastal landed properties have been purchased for long-term investment or vacations.
As a newcomer in the coastal residential market, Phu Quoc Island has only recently been recognized as a prime destination, mostly as a result of infrastructure improvements. In the first quarter total supply was more than 1,700 dwellings/units from six villa projects and one apartment project.
As at the end of the first quarter the villa and apartment segments had sold 65 per cent and 35 per cent, respectively. Good marketing strategies, solid developer reputations, sound construction status, and pristine beach frontage supported performance. All projects are a component of a resort and offer a full range of facilities and amenities.
Due to growing tourism and support policies, Phu Quoc’s coastal residential market has appealed to both local and international developers.
However, most future projects are still in the planning stages as a result of repeated regulatory changes and adjustments to the island’s master plan by the local government.
Only three new projects and the next phases of three existing projects will launch from the second quarter onwards, providing more than 660 dwellings/units.
With better infrastructure, favorable policies and spectacular beaches, Phu Quoc is an ideal tourism destination. Following the opening of the international airport in 2012 visitors numbers have increased strongly, by 55 per cent over the last three years. In the first four months of this year there were more than 523,000 international and domestic visitors, up 37 per cent year-on-year.
A number of large-scale (200+ rooms) projects are expected to enter the market within the next two years, with international operators such as Starwood, IHG and Mövenpick already in place.