Condotel market remained low absorption in the first 6 months

Vietnam Real Estate Brokers Association (VRAS) said that the condotel market remained low in the first 6 months of 2019.



Condotel market is still low because there are not many new products. (Photo: Khai An).


Accordingly, in the first 6 months, the number of transactions reached 2,967/11,855 condotel launched into the market. Absorption rate reaches 25%. Specifically, the 1st and 2nd quarters respectively have transaction volume of 1,569 and 1,398 condotels. This is low star with previous years.


VRAS said that the new supply of condotel products in the first six months of the year was relatively low, the main products from 2018 projects continued to be offered. Due to limited new supply and slow implementation of project procedures as well as not many policies to facilitate the development of this product line, the absorption is low.


In addition, another reason is that customers and investors have not really assured to decide on investment due to the policies as well as the management, operation and exploitation of condotel business. Clients mainly invest in projects of large, reputable and experienced investors in management and business with high efficiency.


Experts also said that the tightening of capital sources and the liquidity of coldotel products are slow because of relatively high prices and low absorption rates.


Khanh Hoa is still considered as a potential market for strong development of condotel resort real estate. (Photo: Khai An).


However, experts also said that areas with advantages in tourism and convenient transportation systems, especially connected by air such as Phu Quoc, Da Nang, Khanh Hoa, and Quang Ninh, continued. It is assessed that there are potential areas for strong development of condotel resort real estate.


In addition, some areas with potential for development of other resort real estate such as Thanh Hoa, Quang Binh, Quy Nhon, Phu Yen, Ninh Thuan, Binh Thuan, Vung Tau... are receiving strong attention from Investors across the country. So, in the coming time, condotel market will have good growth.


In 2019, there will be a legal standard for condotels


At a question-and-answer session before the National Assembly on June 4, Minister of Construction Pham Hong Ha said that in 2019 the Ministry would issue a set of standards and standards related to condotels. The Ministry of Natural Resources and Environment would provide guidance on land use regimes with condotel constructions related to land use time associated with land ownership and apartment ownership. At the same time, the Ministry of Culture, Sports and Tourism would also complete the regulations on management and operation of tourist apartments in 2019.


Previously, the Prime Minister issued Directive No. 11/CT-TTg on a number of solutions to promote the stable and healthy real estate market development.


The Prime Minister requested relevant ministries to supplement construction standards for new types of real estate such as condotel projects, tourist villas (resort villas), close offices. short-term accommodation (officetel); office buildings combined with short-term stay (officetel).


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