People have moved to buy condotels and resort villas again

On August 16, at the seminar "Trends of real estate ownership: International experience and Vietnam practices" by VTV24 News Center, Vietnam Real Estate Association (VNREA) and BizLIVE Investment Forum organizations, delegates have the same view that when the supply of housing products, long-term real estate (apartments, townhouses, villas...) is limited, there will be many opportunities to time-limited estate to be of interest. This is the inevitable trend.

Ms. Duong Thuy Dung, Senior Director of CBRE Vietnam, said that over time, many products have emerged to replace long-term property. The psychology of real estate buyers in Vietnam is very fond of products with long-term ownership so consumption in the market is high. However, in the first 6 months of 2019, the number of projects offering decreased in comparison with the same period in 2018, if for investment, buyers have fewer options. As a result, real-time property products such as hotel apartments (condotels), office apartments (officetel), resort villas... have started to receive the attention from buyers.

Nha Trang City (Khanh Hoa), which developed many condotel projects several years ago. Photo: NLD

According to CBRE Vietnam, a lot of townhouses and condotels in many complex projects in Phu Quoc and Nha Trang are being implemented. These products are only owned for 50 years, buyers are mainly looking for annual rental profits. Over the past 4 years, from 2015-2019, in Da Nang, Nha Trang, and Phu Quoc, the condotel market grew by 100%, the following year doubled - three times the previous year, especially, the project has a good location, the amount of bookings is higher than the number of offers. For about a year, the investor has accepted ownership of 50 years until the law becomes clearer.

Ms. Dung said more than 70 of the 220 countries in the world sell apartments for a definite term, none of them are permanently owned.

However, according to Nguyen Hoang, Director of Research and Development of DKRA Vietnam, there is a problem with these types of real estate. It is the investor racing to commit to profit to entice customers. In 2018, some condotel projects did not meet their profit commitment when put into operation. This makes investors pay attention to the capacity of investors and operating units, reducing interest in profit commitments. However, the issue of legal framework is always concerned by investors.

Talking at the seminar, Mr. Tran Minh Hoang, Deputy General Secretary of Ho Chi Minh City Real Estate Brokers Association, raised the issue: We talk about the legal status of condotel is 50 years but investors will be granted by the state. 50 year land use right certificate or just signed a contract with the investor 50 years? Currently, each locality applies differently. "This has a lot of influence on the market. I suggest that the state issue 50-year books to condotel buyers to protect people's property rights instead of the investors' protection", Hoang stressed.

According to Son Nhung