Phu Quoc Real Estate & Real Property Information
Learn about how to acquire land and property, villas, rental apartments, vacation homes, and real estate services by reading this comprehensive guide.
Phu Quoc Real Estate – Residential & Commercial
Phu Quoc Island, a district of Kien Giang Province, is now classified as a Tier 2 City and designated as a Special Economic Zone. As such, permanent foreign residents and overseas Vietnamese are now allowed to purchase both property and land on the island. Foreigners are now even able to buy property and land on mainland Vietnam as on November 25, 2014 two laws were passed that revised the restrictions previously placed on foreign property ownership. This law becomes effective as of July 1, 2105. The number of properties that a foreigner could buy is under consideration, with a maximum two or potentially an unlimited right to buy. These properties could be leased if their foreign owners are not living in them. Currently you can purchase property for a period of 50 years.
Developing Land On Phu Quoc Island
Due to its remote location and distance from the mainland, investing in a development project on Phu Quoc Island is cumbersome. The average construction cost of a low rise five star hotel on mainland Vietnam is between $1,000 – 1,500USD per square meter however on Phu Quoc it increases by up to 30% more since materials have to be transported from the mainland.
How Much Does Land Cost On Phu Quoc Island?
In 2014 the Commercial Real Estate Services (CBRE) global research and consulting division released a special report on Phu Quoc Island. In the report they outline the price of land per square meter per location. The most expensive parcel of land is located at Long Beach at $100.00 – $200.00USD per square meter. The cheapest parcel of land is located at the southern tip of the island in An Thoi Town where the prices are $10.00 to $15.00USD per square meter. The other areas are:
- Cua Can: $20.00 – $40.00US per square meter
- Duong To Town at $35.00 – $60.00 per square meter
There were no mentions of land costs for Ganh Dau, Cua Duong, or Ham Ninh Villages or the beautiful area of Sao Beach.
Incentives To Invest On Phu Quoc
The following are some of the incentives the Vietnam Government has implemented in order to spur up investment on the island:
- Rents for land and water will be waived for three years. Subsequently, investors might get a further waiver for 11 years, 15 years, or permanently depending on the category.
- Tax will be 10% for 30 years for infrastructure projects like water and electricity plants, water supply and sewage system, bridges, roads, river and sea ports, and airports, and 15 years for certain other categories.
- There are also income tax breaks and exemptions for four years from the time a project breaks even and a 50% reduction for the next nine years.
- 50% personal income tax will be waived for both Vietnamese and foreign nationals working in Phu Quoc.
- foreign investors who build houses for sale and lease in Phu Quoc will have to follow the island’s 1/2000 master plan.
[Source: Vietnam Investment Review]
It is essential to appoint an independent, Vietnamese and English-speaking lawyer to review all contracts that are to be signed. You local embassy will be able to provide impartial advice, as well as a list of trusted professionals.
You can borrow a maximum of 60% of the property’s value.
Real Estate Agent Fees
The selling party will pay the agent a fee between 1 – 3% upon closing. When a transaction occurs, the seller must also pay a 2% tax on the transfer price and the buyer must pay 0.5% tax on the value of the property. Additionally there is a stamp duty of up to $25,000.00USD. [Source: CBRE]
All property transactions in Vietnam are carried out in pure gold, which can suddenly make it all more expensive. You will need to keep a close eye on the cost of metals so as to determine the best time to buy.
Where to find property and houses for sale on Phu Quoc Island?
The best place to find property and/or houses for sale is to come to the island itself. Once you are here you can ask local people or just tour the island and look for “For Sale” signs written in Vietnamese.
You can also try various Vietnamese online real estate websites such:
- chaocom.com – porvides a full range of services for expats in Vietnam — from real estate to car rental and travel plans, to business investment consultancy.
- Craigslist: http://vietnam.craigslist.org/search/rea – lots of properties here
- Easy Property: www.izproperty.com – Lots of commercial and residential property here. You can even find raw land to purchase.
- http://datvangphuquoc.com/ – A real estate agency based on the island
Buying Condominiums Villas and Vacation Homes On Phu Quoc Island
As Phu Quoc Island is being developed to be the next premier vacation destination in Asia, there are now ample opportunities to purchase condos, villas, and vacation homes. Currently there are 3 projects on the island developing vacation communities:
The Sunset Sanato Resort and Luxury Home development project, by the 99 Mountain Corporation, began in 2012 and has been rapidly developing in Duong To town just south of the airport. The total area being developed is approximately 24.7 hectares and as of Jan 23, 2015 70% of the project has been completed. Sunset Sanato is developing a luxury resort, beachfront villas, restaurants, condominiums, shopping mall, and a tourist shopping street.
The following is a promotional video of Sunset Sonata:
The following is a video of the current state of development of the Sunset Sonata Project:
Sonasea Villas & Resort
Sonasea Villas & Resort is another mixed commercial residential project lead by the CEO Group. The Sonasea real estate development complex will occupy total of 79.9 hectares and will be located in Duong Dong Town.
[ Source: CEO Group ]
Dreamy Hill Villas
Dream Hill Villas in located at 34 Tran Hung Dao street, Duong Dong Town and consists of 65 individual villas It is important to note here that these villas are not located on the beach but rather in town.