Hanoi (VNA) – Sa Pa, a tourist destination in thenorthern mountainous province of Lao Cai, has become a magnet for real estate investorsin recent years, according to insiders.

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 beenadding 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 onefive-star hotel, Aristo International Hotel, in Lao Cai but it is not locatedin Sa Pa. The district will be home to several five-star hotel projects in thenear future such as Silk Path Grand Resort & Spa Sapa and Mgallerry Sapa.

Other hotels and holiday villas set to be builthere include Bitexco, Suoi Hoa, Spa Lao Chai, and Thung Lung Vang resorts.

Infrastructure in Lao Cai has gained a faceliftover the past few years, which is believed to have helped increase the localproperty market’s attraction. 

An expressway linking Hanoi’s Noi BaiInternational Airport with Lao Cai was already put into operation, and itssecond phase is scheduled to finish in 2017. Tran Hung Dao road – an artery ofLao Cai city – along with other expressways like 279, 4E, and Lao Cai – Hanoi –Hai Phong are also being expanded to facilitate transport with otherlocalities.

However, the real estate market in Lao Cairemains underdeveloped and lacks high-end products. As a result, the advantagesof unique natural landscapes and climate as well as favourable transportinfrastructure haven’t been capitalised on, said Do Thi Thu Hang – AssociateDirector of Research at Savills Hanoi.

Sa Pa is also facing fierce competition forproperty projects with other big markets in northern Vietnam such as Quang Ninhprovince, Vinh Phuc province and Hai Phong city, or in the central region likeDa Nang, Hoi An, and Hue cities.

Systematic planning is necessary for theproperty market in Sa Pa, as well as in Lao Cai, to have a clear developmentorientation, Hang said, expecting that new segments such as holiday villa,five-star hotel and condotel will become magnets for real estate projects.-VNA