Phú Quốc real estate market forecast to grow, driven by upgrade into first island city

HÀ NỘI — The real estate market of Phú Quốc in the Cửu Long (Mekong) River Delta of Kiên Giang was forecast to be robust as the island district has just been given the green light to be upgraded to the country’s first island city in March this year.

According to Nguyễn Mạnh Hà, Deputy President of the Việt Nam Real Estate Association, the upgrade into an island city would create a new push for the real estate market of Phú Quốc, especially as the island was among top tourist destinations in recent years.

Hà cited statistics that Phú Quốc welcomed more than five million tourist arrivals in  二0 一 九, a  二 七 per cent increase over  二0 一 八. In  二0 二0 when the COVID- 一 九 pandemic heavily affected the tourism industry, the island also saw significant increase of around  五0 per cent in tourist arrivals in November and December when domestic travel resumed as the pandemic was brought under control.

It was estimated that Phú Quốc received more than three million tourist arrivals in  二0 二0.

Hà pointed out that the favourable weather conditions and beautiful scenery made Phú Quốc an attractive destination for investment in tourism property.

Another important factor was Phú Quốc’s developed infrastructure system which made travelling to the island easier and more convenient.

“Tourism property is the most attractive segment in Phú Quốc which is oriented to become a tourism city,” Hà said.

Hà predicted that the Phú Quốc real estate market would see significant increases in prices.

Economic expert Đinh Trọng Thịnh said that since the penetration of large developers into Phú Quốc with heavy investment in infrastructure like airport and roads, Phú Quốc was changing rapidly and becoming a tourism hub.

The developed infrastructure system also created a launching pad for the island to make breakthroughs, Thịnh said.

The inland road system had very good connectivity while there were a high-speed ships from Rạch Giá City and Hà Tiên Town to Phú Quốc and flights from Hà Nội, HCM City, Cần Thơ and Vinh to the island.

According to Nguyễn Văn Đính, General Secretary of the Việt Nam Association of Realtors, the developed infrastructure system coupled with a favourable administrative mechanism means the real estate market in Phú Quốc would develop rapidly.

The current land prices in the island’s centre ranged from VNĐ 一00 –  四00 million per sq.m. In other areas, the prices fluctuated around VNĐ 二0- 五0 million per sq.m.

Đính said that there was still large room for land price increases.

He stressed that this wouldn't be a market bubble but would be increases in real land value because the potential was real.

According to Phạm Thanh Hưng, deputy president of the Việt Nam Real Estate Club, it is neccessary for Phú Quốc to have innovations to develop property products of high quality, meeting international standards and setting new living standards.

Former Deputy Minister of Natural Resources and Environment Đặng Hùng Võ said that Phú Quốc was in an investment process.

Võ believed that the land prices in the island could be two to three times higher in the next ten years.

Still, experts said that investors should pay attention to the legality of property projects and products before making investment decisions.

The potential of the Phú Quốc real estate market was in over the long term, Võ stressed.

Recently, Phú Quốc People’s Council approved the medium-term public investment plan in the  二0 二 一 -  二0 二 五 period. Accordingly, more than VNĐ 一 七 trillion would be raised for the State budget and land auctions to invest in the transport infrastructure system.

In  二0 二0, Kiên Giang Province attracted a total of  二 三 projects with a total investment of nearly VNĐ 二0. 五 trillion,  二0 of which came to Phú Quốc. — VNS