Phu Quoc to see development of condo-hotels

Friday, Mar 18, 2016 09:28


Condotel Residences Phu Quoc. —Photo Sun Group
HA NOI (Biz Hub) — Condotels, a hotel model that combines apartments and resorts in the southern island of Phu Quoc, is attracting both local and foreign investors.

Real estate sources say the condotel concept is being considered for possible investments due to its prime location and the prestige of its developers, according to real estate sources.

Besides being a popular destination for tourists from Russia, Singapore, Malaysia, and Thailand, Phu Quoc has recently started welcoming visitors from Europe. Many foreign airlines have opened routes and increased the frequency of flights to the island since the tourism infrastructure was significantly upgraded, particularly the available accommodations.

This marine tourism paradise in Vietnam is facing new opportunities, both with tourism and resort properties.

Earlier this month, a Swiss airline TUI Nordic jetliner landed on the island with some one hundred European visitors who came for their winter holiday. A representative of the airline said it will schedule weekly flights to the island by the end of 2016.

Also, in January real estate developer Sun Group successfully hosted a conference in Singapore to seek investments in their projects in Phu Quoc.

"Singaporeans regularly travel to Southeast Asian countries. They rent apartments costing tens of thousands of dollars per month for vacation. And they are willing to spend extra money to own a coastal condotel," said a Singaporean investor.

In Singapore, a three-bedroom condotel is priced between $500,000 and $840,000, while a similar condotel on Phu Quoc Island costs about 25 percent of that. Singaporean have also chosen to invest in condotels built amidst beautiful locations on Phu Quoc Island.

Leong Boon Hoe, managing director of CBRE Singapore, said that three factors have made hospitality real estate in Vietnam attractive to Singaporean investors, including their competitive prices, good locations, and the prestige of the developers.

Not only are investors interested in Singapore, but Phu Quoc Island is also attracting strong interest from other foreign investors. Jonathan Tizzard, director of research and valuation at Cushman and Wakefield, said the profit outlook for coastal resorts, especially the condotel segment in Vietnam, are attracting investors from throughout the world. Of those being favored, Phu Quoc is on top of the list, followed by properties in Da Nang and Vung Tau.

Sun Group, which developed several condotels on the island, says the condotel market is attracting investors because the properties are located close to beaches having 30 per cent building density, with the remaining space being green, and they offer 5-star amenities.

More importantly, the group says it has committed to providing profits of at least 9 percent per year for nine years, along with many free stays for the buyers of the condotel.

Seeing the potential, other real estate developers, such as Vingroup and LDG Group, are building their condotels on the island. Thus, condotel development is expected to heat up the market this year. — VNS

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