Condotels have lose their attraction among investors due to tighter management restrictions, and farmstays have emerged as a new investment trend during the COVID-19 pandemic.
The Ministry of Construction has asked provincial and municipal people’s committees to tighten management on condotels, officetels, resort villas and shophouses while there remains a lack of regulations to ensure the development of these new property products.
The Hà Nội People''s Committee recently issued a written request to strengthen the management of the investment, construction and business of condotels, tourist villas and officetels.
The municipal Department of Natural Resources and Environment would be in charge of providing detailed instructions for granting land and house ownership certificates for condotels.
Experts believe the State''s issuance of ownership certificates for non-residential real estate projects will solve existing difficulties in Viet Nam’s real estate market.
The Ministry of Natural Resources and Environment (MoNRE) has sent a document to local departments to regulate the use and certification of non-residential real estate projects.
Investment in condotels remains appealing despite defaults in profit commitments by property developers, but a clear legal framework is needed to protect investors’ rights, according to experts.
According to the Viet Nam Real Estate Brokers Association last year around 23,000 units of condotels, or condo-hotels, were offered for sale, and 65-70 per cent of them were snapped up. However, demand for condotels seems to be falling.
The HCM City Real Estate Association (HoREA) has urged the Government to ensure condotels and officetels are not used primarily as apartments, warning that would cause problems for urban planning and infrastructure and transport.
The legality of condotels needs to be clarified to better manage this new type of property gaining popularity in Viet Nam, a representative from the Ministry of Construction said.
Experts said the legality of coastal condotels should be clarified since the product had recently emerged an investment trend in Viet Nam''s realty market.