Property prices in Vientiane grew by 10 to 15 percent in 2012 as real estate is embarked into a historical boom.
VIENTIANE- Property prices rose by up to 15 percent in Laos last year as a result of foreign investment and growing confidence in the economy, reported the Bangkok Post.
Land prices in Vientiane rose by 10 to 15 percent on average, and by up to 50 percent along the Mekong River bank according to Houmphan Sayalath, managing director of Laos based real estate agent, RentsBuy.com.
The Mekong River bank is one of Vientiane’s prime areas, where land is currently being sold for US$3,000 per sqm, up from US$2,000 per sqm in 2011.
“There are a number of mega land development projects underway in Vientiane and this is making people feel more confident that the price of land will continue to increase,” Houmphan said.
Last year the government gave Chinese development firms the go-ahead to develop several mega-projects in Laos. The government also supported a wetland development project by a Vietnamese property firm, according to Houmphan.
The government also permitted overseas investors to channel over US$500,000 into Laos to purchase 800 sqm of residential and office land.
Laos experienced one of the highest economic growth rates in 2012, reported the Bangkok Post. According to the Asia Development Bank, growth was estimated to be around 8 percent.
Despite recent economic growth, the United Nations still ranks Laos as one of the world’s poorest countries.
(Source: The Bangkok Post)
Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.
