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Friday, January 30, 2004

Sizzling tourist trade fires up property prices in hot Hoi An

Duong Quang

HOI AN — A growing tourism trade has led to climbing land prices in
the historic town of Hoi An.

The rise has come following a National Assembly decision to upgrade
the town's two coastal communes to wards. Land prices have risen
sharply on many streets in the new wards, Cam Chau and Cam An, which
link the Cua Dai (Dai Estuary) with Hoi An.

Pham Ngoc Xuan has decided to sell his 1,300sq.m plot in Cam Chau for
VND3 million per square metre. "The price will be higher in the near
future. You'll regret if you don't buy it now," he told a HCM City
native who later agreed to buy it.

At such prices, land in Cam Chau is even more expensive than in Da
Nang. "Can you make profits with a hotel in Da Nang? Here you can be
rich very quick," Xuan said.

Land prices are much higher in Cam An, with prices climbing as high as
VND7 million (US$448) per square metre, nearly 10 times the price a
few years ago.

But finding land to meet the demand for business or tourism is
becoming difficult. The most beautiful plots in Cam An are now tourism
projects that include new hotels and restaurants.

Among the most expensive sites are new business streets in Hoi An
where many hotels are being built by overseas Vietnamese by Viet kieu
(Overseas Vietnamese) and business people from Ha Noi and HCM City,
for hire to expatriates.

Located 30km south of Da Nang along Quang Nam Province's central
coast, Hoi An will soon be a modern city, many business people
predict.

The tourism business in Hoi An has enticed many people hoping to earn
big profits.

The Quang Nam People's Committee recently decided to stop issuing
permits for construction of mini-hotels in Hoi An because it said the
town had enough hotel rooms.

"We'll try to build a hotel of a three-star standard. Local
authorities will not refuse permits for a three-star hotel, " said one
Hoi An newcomer.

One town resident is preparing to sell his house on Huynh Thuc Khang
St., one of the streets leading to Hoi An, to buy a house in the old
town.

"Tourism prospers in Hoi An. Huynh Thuc Khang St. is not good for
business," he said.

But prices of Hoi An's old houses are very high.

Along Tran Phu and Nguyen Thai Hoc streets are several well-preserved
homes dating to the 17th, 18th and 19th centuries. Their architecture
is a medley of Japanese, Chinese and Vietnamese styles.

Resident Nguyen Thi Diep has advertised to sell her 160-year old
house, covering 113square metres on Tran Phu St., at the cost of
VND3.6 billion.

If she can sell the house at that price, she will have enough money to
buy two villas in Da Nang.

A house about 100m from Diep's house but larger, covering 180sq.m, was
recently sold for VND3.8 billion.

"Many smaller houses, about 60 sq.m, have been sold at VND1.2
billion," Diep said. "But it's difficult to do business with small
houses."

The collapse of three historic houses in Hoi An's Bach Dang St. last
year heightened concerns for hundreds of the town's buildings, which
have suffered centuries of decay.

Many people have plans to sell their old houses because of the
shortage of money for renovation. At least 10 houses on Tran Phu St.
are advertised for sale.

Those who sell their historic homes in Hoi An are able to lead a
wealthier life and can buy a large plot in the new Tan An urban area
in the suburbs of the old town. — VNS

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