Sa Pa, a tourist destination in the northern mountainous province of Lao Cai, has become a magnet for real estate investors in recent years, according to insiders.
Sa Pa has become a magnet for real estate investors in recent years
Among major developers who are working on projects here are Bitexco, Sun Group, Vingroup, Thien Minh and Sapa Land.
Many projects of prestigious investors have been adding new services and products to the locality such as shopping malls, entertainment centres, holiday villas, cable car services, and high-end hotels.
A recent outstanding project is Sapa Jade Hill, which is considered a typical example of tourism property in Sa Pa district.
Savills Vietnam reports that there is only one five-star hotel, Aristo International Hotel, in Lao Cai but it is not located in Sa Pa. The district will be home to several five-star hotel projects in the near future such as Silk Path Grand Resort & Spa Sapa and Mgallerry Sapa.
Other hotels and holiday villas set to be built here include Bitexco, Suoi Hoa, Spa Lao Chai, and Thung Lung Vang resorts.
Infrastructure in Lao Cai has gained a facelift over the past few years, which is believed to have helped increase the local property market’s attraction.
An expressway linking Hanoi’s Noi Bai International Airport with Lao Cai was already put into operation, and its second phase is scheduled to finish in 2017. Tran Hung Dao road – an artery of Lao Cai city – along with other expressways like 279, 4E, and Lao Cai – Hanoi – Hai Phong are also being expanded to facilitate transport with other localities.
However, the real estate market in Lao Cai remains underdeveloped and lacks high-end products. As a result, the advantages of unique natural landscapes and climate as well as favourable transport infrastructure haven’t been capitalised on, said Do Thi Thu Hang – Associate Director of Research at Savills Hanoi.
Sa Pa is also facing fierce competition for property projects with other big markets in northern Vietnam such as Quang Ninh province, Vinh Phuc province and Hai Phong city, or in the central region like Da Nang, Hoi An, and Hue cities.
Systematic planning is necessary for the property market in Sa Pa, as well as in Lao Cai, to have a clear development orientation, Hang said, expecting that new segments such as holiday villa, five-star hotel and condotel will become magnets for real estate projects.