The construction ministry will study the legality of condotels and issue technical standards soon to ensure that the development of this new property product is on the right track.
The ministry stated this in a document sent to Viet Nam Real Estate Association in response to its proposals regarding the development of condotel, which, the association said, has recently emerged as an investment trend in the realty market.
Relevant regulations for mixed land use purposes and granting of house ownership will be considered to ensure that this new property product develops appropriately.
Property experts said that condotels, which appeared in Viet Nam around five years ago, have emerged as a hot investment trend in the past two years. However, their legality remains vague and has been hindering development.
An estimate by G5 Property Trading Floor Alliance showed that in 2016 alone, more than 12,000 condotels were put up for sale at the market.
Experts said the Government should urgently clarify the legality of condotels. It must address three issues: legality, infrastructure planning, and management mechanism.
The association has predicted that this segment will get busy in the future after regulations are in place as more projects will be constructed and will boost supply.
Da Nang taking steps
The People’s Committee of Da Nang City has asked the municipal Department of Construction to work with the Department of Natural Resources and Environment to develop management mechanisms for the construction and operation of condotels and tourist villas in the city.
Previously, the municipal Department of Construction in a document sent to the People’s Committee said that condotels and tourist villas were springing up quickly in the city, especially in coastal areas, which pressured social and technical infrastructure.
The rights of buyers of condotels and tourists villas also remained unclear, which could carry risks.
According to Nguyen Van Nam, Deputy Director of Da Nang Department of Construction, the early promulgation of regulations on condotels was necessary to protect relevant parties.
Nam added that responsibilities of developers, owners as well as ownership models must be clarified.
A condotel is a condominium operated as a hotel. — VNS