Buying property in Hoi An
Hoi An is home to the largest harbour in Southeast Asia. The area has grown to become a hugely popular tourist destination and is enjoying climbing land and development prices thanks to ever-increasing visitor numbers. Its key areas of interest are the old town that runs in part along the De Vong river and the exceptional Cua Dai Beach. Another part of the city which is proving popular of late is Cam An, where property prices are climbing as high as US$448 per square metre; nearly 10 times the price of less than a decade ago. Its closest neighbouring city is Danang, which is some 35 km away. Hoi An is also served by Danang airport which is 40km from the centre of Hoi An.
Tourism figures in Hoi An, much like the rest of Vietnam, have been spiralling upwards over recent years. In the first two months of the year, Hoi An received 90,000 tourists which was an increase of a massive 40 per cent on the same period last year. The profile of those coming to visit is also changing, with some 80 per cent of this year’s travellers being non-Vietnamese. Hoi An is also beginning to augment its contingent of backpackers by an ever-increasing number of more high-budget travellers.
At present, 47 per cent of those coming to stay in the port city are staying in four-star hotel rooms. These visitors, in turn, account for 60 per cent of total turnover from accommodation. Hoi An’s sizzling tourist trade is driving the city’s property prices and it shows no sign of abating any time soon. Britains Qudos Company has been licensed to build a five-star resort in Hoi An’s ancient town area with the investment capital of $18mil.
The Qudos Hoi high-grade ecological tourism complex and five-star resort kicked off in 2007 and is due to be put into operation after 33 months of construction. The authorities are taking steps to ensure that foreign companies stay interested in the area by offering a range of incentives. As per the investment license for the Qudos Hoi for example, the duration of the project will be 50 years, during which the investor will be exempt from corporate income tax for two years, and have a 50 per cent tax reduction in the subsequent five years.
In addition, the investor will not have to pay land leasing fees for the first three years from the day the complex becomes operational. These incentives are also drawing investors aiming to build developments with residential aspects.
VinaCapital Hoi An Tourism Co recently introduced the Hoi An Royal Bay high-class resort, which sits on an area of seven hectares running from My Son beach to Cu Lao Cham. The project is being started with an initial investment capital of US$16 million. The project includes a luxury resort area, modern hotel, 100 small villas together with an international standard entertainment area.
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