Phu Quoc's Real Estate is facing a "golden opportunity"

(Construction) - On January 1th, 2021, Phu Quoc officially became the first island city of Vietnam. With this new position, Phu Quoc - "The Pearl Island" has really attracted many great investment resources for socio-economic development. The infrastructure is also improving every day in an effort to make Phu Quoc develop into a world-class economic and tourism center.

From 2022, the establishment of investment projects in Phu Quoc will mainly be through by bidding, auction

In the future, Phu Quoc will continue to receive special attention from the Government on mechanisms and policies. This place will be an international tourist center, the new economic - financial center of the region. Investment capital will continue to pour into residential real estate products in Phu Quoc. The island city's real estate market will constantly "upgrade" to become a worthwhile investment destination.

Analyzing the opportunity to invest in Phu Quoc's real estate, Mr. Nguyen Anh Que - Member of the Executive Committee of the Vietnam Real Estate Association said: Recently, almost all investors are interested in the Phu Quoc's real estate market, just like everyone wants to come to Phu Quoc for a vacation.. However, for a long time, the biggest obstacle of Phu Quoc's real estate is unstable planning, projects covering residential areas... In particular, the application of Article 62 of the Land Law still has many shortcomings in service and housing projects; low compensation leads to frequent complaints. These things are worrying investors.

However, from 2022 onwards, the establishment of investment projects in Phu Quoc will be mianly through auction and bidding, in addition, investors that have land will be appointed contractors; the compensation will be according to the market price agreement; Currently, the separation of parcels and conversion of land use purposes in Phu Quoc is favorable... Therefore, investing in Phu Quoc is no longer a big obstacle. On the contrary, it promises to be the "goose that lays golden eggs" for investors, with investment potential and profit expectations for all wise investors.

Mr. Nguyen Anh Que assessed that, at present, the Government is directing the People's Committee of Kien Giang province and the Ministry of Construction, Ministry of Natural Resources and Environment etc. to re-plan Phu Quoc, "turning" this place into a special economic area, focusing on tourism - finance - import and export and fishery. Very soon Phu Quoc will become a magnificent, sleepless city like Shanghai, Hong Kong, Singapore etc. Real estate here will be worth several hundred million dong, up to billions VND/square meter.

Major projects to be put into use soon such as international passenger port, 220V power line across the sea or ongoing projects such as: Non-tariff zone, international airport expansion project, modern megacities that replace the old airport include skyscrapers, international trade centers, Vinpearl Bai Vong and many big projects of large enterprises will contribute to the vibrant and expensive Phu Quoc's real estate.

"At present, the average price of Phu Quoc real estate is less than 5 million per square meter (excluding Duong Dong Center of An Thoi) According to the plan, all communes in Phu Quoc will be built into wards in 2025. After that, Rach Ham – Ham Ninh, Duong Dong and An Thoi will become the most beautiful metropolitan areas, such as the development history of Long Bien, Cau Giay and Tay Ho (Hanoi)", shared by Mr. Nguyen Anh Que.

Mr. Nguyen Anh Que also assessed that, Phu Quoc is different from other tourist destinations in Vietnam, where tourism develops all year round, the number of guests is always crowded and the occupancy rate is always over 80%, the restaurant is always busy. busy, etc. Unlike Nha Trang, Da Nang etc. are areas with strong potential but have been exploited for a long time and the price is already high, "The Pearl Island" - Phu Quoc is still in the early stages, still has a lot of potential to exploit and develop. Therefore, buying real estate for cash flow business in Phu Quoc is very good, because the payback period is less than 10 years and real estate prices are always increasing. In particular, in the current context of Vietnam's real estate market in general, in order to achieve the economic growth target of 2022 and lessons from the Chinese real estate freezing, affecting the economy, the Vietnam's Government will make adjustments for stable real estate development such as increasing credit room, more favorable in investment procedures...

In the period from September 2022 onwards, Vietnam's real estate will have different characteristics than before, such as: Areas with low prices, rich potential, real estate with reasonable cash flow and apartments in urban developed with not too high prices will be the preferred options. Loans will be activated again, but banks will be more strict in lending such as lower valuation, lower loan percentage, due diligence on legal and planning issues. The State will not restrict the separation of parcels, but instead adjust the regulations on the separation of parcels to be more appropriate.

Especially, because the draft amendments to the Laws on Land, Housing and Real Estate Business were published and the Law on Investment took effect, there are important new points such as: Projects are mainly through bidding and auctions. price; abolishing the land price bracket, annual land price list, changing land use purposes, compensating and transferring based on market prices, leading to agricultural real estate, especially perennial crops with residential land planning, will be attractive investment channel. Investors will limit bank loans due to previous lessons, especially retail investors, except for investors, this reduces risks for real estate, and the collapse of real estate due to credit tightening is also very difficult.

In the general context of Vietnamese real estate, when investors are looking for the right real estate market, Phu Quoc's real estate emerges as the right and attractive choice.However, it should be noted that, in fact, the land fund in "Pearl Island" is not much. Residential land fund will be given to customers and investors first come (currently about 6%). For customers who arrive later, finding potential real estate in this beautiful island city is bound to become more and more difficult.

Minh Hanh