As one of the largest island in Vietnam with blue sea and white sand, Phu Quoc attracts many real estate investors. A series of real estate projects are launched and the wave of investment is spreading.
A market with tremendous competitive pressure.
Up to the end of the second quarter of this year, Phu Quoc welcomed 2.24 million visitors, of which foreign tourists accounted for 9%. Over the same period, the number of foreign visitors increased 42%, domestic visitors increased 64.8%.
The number of visitors has increased so rapidly, but it is not all of the hotels are business-friendly. In fact, hotels are competing harshly on capacity and price.
In the future, a large number of new projects come into operation will create more intense competition in the market.
Supply for villa and condotel segment rose sharply.
Investing in a second home in a fast-growing tourist destination appears to be a smart strategic decision, as long as investors are expected to be profitable.
However, investors should also be aware that in the future there will be a lot of second home projects with diversified products from villas, condotel.
Therefore, buyers should find out more information about the project. See if they are affordable, profitable, scalable, developed by the owner and reputable management.
We will be quite concerned about the current condotel trend in Vietnam. Supply is expected to outstrip demand and make sure it takes a long time for the market to absorb such a large volume of products.
Despite the competitive pressure, big brands are still entering the Phu Quoc market.
Since 2016, the 4-star Novotel, developed by Group CEO, has officially entered the market and become part of a large-scale Sonasea Villas and Resort project, which includes many resorts, villas, and condotel.
Another project that recently entered the market is Sol Beach House Phu Quoc. The hotel is in the pre-opening stage and will soon receive the first visitors. Sol Beach House is a mid-scale brand, an operator from Spain and developed by MIK.
At Bai Truong, the Intercontinental Hotel was invested by BIM GROUP, which has been under construction for a long time and is expected to be completed in early 2018.
In addition, the JW Marriott Hotel, which is being completed early in 2017, is a specially designed and build-class project with the expectation of becoming a symbolic project not only for Sun Group but also for Phu Quoc.
Sun Group is still developing the Premier Residences Emerald Bay project next to JW Marriott and Premier Village to the south. Both projects are expected to come online in the near future.
These are just some of the most prominent representatives of the market today. The market is also looking forward to joining Phu Quoc of major brands such as Sheraton, Pullman, Movenpick, Crowne Plaza and even the Ritz Carlton.
There will be a variety of entertainment, retail, food services for tourists to spruce up on the island. It is hoped the market will have more projects designed with a rational planning, vision and ecological focus to ensure a sustainable development.
You can read more information at Vietnam Real Estate Market
However, there are still some challenges that need to be addressed thoroughly in Phu Quoc.
Infrastructure has improved in Phu Quoc, the new airport has, but lacks international routes. Previously, Phu Quoc had direct flights from Singapore and Siem Riep but a few years recently, it was canceled.
One issue worth noting is that the island’s waste disposal system is slowly becoming a challenge for tourism. Large amounts of waste are discharged into the streets, in vacant lots.
Garbage discharged into the river system and from there to the sea. Everyday rubbish is washed away on the beach, in front of the resort.
Phu Quoc is also a shortage of skilled workers, especially middle management personnel and supervisors. Project owners are currently having difficulty in finding experienced and qualified personnel in positions.
Although gradually improved day by day, Phu Quoc is still lacking in services and leisure activities, especially at night. So the average length of stay of visitors is relatively short.
On the external relationship, Phu Quoc was once attracted by international investors. However, due to the unclear and transparent policy and the adjustment of the plan, foreign investors are still shy about investing in the island.
Which time is best? That is a difficult question for investors.
Although Phu Quoc’s real estate has long-term potential, with land prices escalating in the past few years and entering into a fierce competition phase. It is also predicted that the segment of hotels and resorts will face certain difficulties in the coming period because the supply will increase rapidly.
Big investors with new financial strength can survive the competition. So investors have to carefully look at the market carefully and wait patiently for good opportunities to come.
You are reading the article “How Is The Real Estate Market In Phu Quoc?” in the section “Real Estate News” on the website: https://realestatevietnam.com.vn/
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