Property prices in Vientiane rose up to 15% last year, bolstered by foreign-funded development projects and growing confidence in the economy, state media said Thursday.
Vientiane, Laos (EPA photo)
Houmphan Sayalath, managing director of RentsBuy.com, a leading real estate agent, said land prices in town rose 10 to 15% and 50% along the Mekong River bank, the Vientiane Times reported.
"There are a number of mega land development projects under way in Vientiane and this is making people feel more confident that the price of the land will continue to increase," Houmphan said.
The government last year gave the go-ahead for Chinese firms to develop several mega-projects, and for a wetland development project by a Vietnamese firm, he said.
The government also last year allowed foreigners who invest more than 500,000 US dollars to own 800 square metres of residential and office land, which has further boosted property prices.
Houmphan said land in Vientiane's prime locations such as along the Mekong River bank was going for 3,000 dollars per square metre, up from 2,000 dollars in 2011.
Land-locked, communist Laos boasted one of the highest economic growth rates last year, estimated at 8% by the Asia Development Bank, but is still ranked among the world's poorest countries by the United Nations.