Potential clear to see in new segments such as villas, five-star hotels, and condotels, according to Savills Vietnam.
Ms. Do Thi Thu Hang, Head of Research & Consultancy at Savills Hanoi, said that Lao Cai and Sapa have attracted many large investors in real estate already, such as Bitexco, the Sun Group, Vingroup, the Thien Minh Group, and Sapa Land, with Sapa Jade Hill being a major project in the resort property segment. “Projects from these prestigious investors are adding more attractive services and products to Lao Cai city such as shopping centers, amusement parks, shophouses, a cable car, and luxury hotels,” she added.
The latest Savills report noted that Lao Cai now has only one five-star hotel, the Aristo International Hotel, while Sapa has no five-star hotels as yet. Sapa will, however, welcome a number of five-star hotel projects in the time to come, such as Silk Path Grand Resort & Spa Sapa and Mgallery Sapa. The resort town’s real estate market will also receive new supply in the resort and hotel segment from projects such as Bitexco Resort, Suoi Hoa Resort, Lao Chai Resort, and Golden Valley Resort.
Lao Cai and Sapa’s real estate market has both opportunities and difficulties. “The real estate market is still underdeveloped and lacking many high-end and luxury products, but the natural landscape and unique climate are advantages, along with infrastructure,” said Ms. Hang.
Lao Cai and Sapa are facing competitive pressure from many large markets in the north, such as Quang Ninh, Vinh Phuc, and Hai Phong, and in the central region, such as Da Nang, Hoi An and Hue, according to Ms. Hang. These are places that have seen relatively large demand from investors and visitors from the north in terms of accessibility, products, price, sales policy, investment environment, efficiency, investment cost, and tourism products.
Sapa was listed among the 50 most beautiful places in Asia by Condé Nast Traveller, a global luxury travel magazine. It was also cited by tourism website Lifehack as two among seven reasons why tourists should take a holiday in Vietnam.
Total arrivals to Lao Cai reached 1.8 million in the first eight months of last year, an increase of 28.5 per cent year-on-year, according to the Vietnam National Administration of Tourism (VNAT). There were approximately 428,000 international visitors in the period, down 1.5 per cent year-on-year. The number of domestic tourists reached 1.37 million, up 42 per cent.