A range of new resort and hotel projects are popping up in mountainous areas around Vietnam.
After the boom in seaside real estate development in Da Nang, Nha Trang, Phu Quoc Island, Quang Ninh, and Phan Thiet, which have brought in huge profits, property investors are now looking towards the mountains for opportunities.
There are many large-scale projects now underway in mountainous areas, such as Ba Na in Da Nang and Ho Tuyen and Suoi Vang in Da Lat. Sapa has also recently become a major destination for investors, especially in resort real estate.
According to leaders of the Sapa People’s Committee, the town will soon welcome a number of new projects with 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.
Many real estate experts believe that the development of infrastructure is a major factor helping Sapa become a destination for tourists and investors. The recently-opened Hanoi - Lao Cai Highway considerably shortens the travel time to the famous hill town and the Lao Cai Airport project is also underway and will be completed shortly.
The number of tourists to Sapa has been increasing rapidly. According to official figures from the Vietnam National Administration of Tourism, tourism growth from 2011 to 2015 in Sapa increased sharply; in 2015 by an estimated at 2.2 million, for growth of more than 170 per cent compared to 2014, and is set to continue increasing into the future.
Just the beginning
According to major tour operators, mountain areas hold certain advantages in tourism and present new investments for investors and will continue to do so.
While many have said that mountain villas are the latest trend because the coastal villa market has become saturated, Ms. Do Thu Hang, Head of the Savills Hanoi Research Department, said that investment in mountain and river areas is a separate matter. “Seaside real estate is not saturated because demand is still huge,” she said. “Compared with other countries in the region, the resort real estate market in Vietnam remains quite modest.”
The most important thing is product quality, because not all villa projects by the sea or in mountain or river areas can turn a profit, according to Ms. Hoang Phuong, Director of the Residential Sales Department at Savills Hanoi. “There are so many people buying villas not only to live in but also for investment,” she said. “Therefore, it is important that these projects are built in areas with developed infrastructure, convenient transport, and modern facilities for residents.”