New road link triggers surge in investor interest.
Sa Pa has become an ideal destination for investments in resort real estate after the Hanoi - Lao Cai Highway opened and considerably shortened the travel time to the famous hill town. Mr. Stephen Wyatt, Country Head at Jones Lang LaSalle, told VET that it is no wonder Sa Pa is becoming an ideal investment destination for projects such as hotels or resort because of its famous, stunning scenery. “Transport links were a problem before but this was overcome when the Hanoi - Lao Cai Highway was completed and allowed a travel time of just five hours,” he said.
He also believes that interest in Sa Pa among investors is due the growth potential of resort real estate being quite large as demand for tourism grows rapidly. “It is a good time for investors to seize the opportunity,” he said.
According to leaders of the Sa Pa People’s Committee, the town will soon welcome a number of projects for large-scale hotels and resorts, such as the Ta Phin ecological tourism site with investment capital of nearly $20 million, projects of the Sapa Indochina International Hotel with investment capital of $7.8 million, and the Indochina Spa & Resort project, invested by Indochina Group. All have already been approved by authorities.
In 2014 Sa Pa saw hotel and resort projects invested by major corporations, such as the Aristo international hotel, U Sa Pa hotels invested by the Vietnam Oil and Gas Group (PetroVietnam), the Sapaly Hotel of the Binh Tien Imex Corp. (Bitis), and a project of the Cau May Luxury Eco-tourism Resort and the Mercure Sa Pa Resort & Spa, invested by the Truong Giang Sa Pa JSC with total capital of $56 million.
As the market exhibits positive signs of recovery and resort property prices in Sa Pa are still low, there is a great investment opportunity for investors. Sa Pa is a frontier town in Sa Pa district, Lao Cai province, in Vietnam’s northwest, famous for its stunning scenery. Each year it attracts more than 200,000 tourists.