Though the condotel market is facing major challenges, investment in condotels remains appealing and is expected to benefit the real estate sector, as long as a clear legal corridor is established to protect investors.
Mauro Gasparotti, director of Savills Hotels APAC, writes on his expectations of the condotel market in Vietnam, and what solutions could be found to ease the situation.
Yields of 4-6 per cent are the right expectations for a sustainable rental return, given that the buyer still enjoys free usage and a potential chance for capital gain in the mid- to long-term, says Savills Hotels APAC.
While condotel is expected to regain popularity in the near future, Danang’s second-home villas market sees no sign of improvement throughout and after the first half of 2019.
Due to the unclear regulations on condotels, the market in Da Nang slowed down in the first quarter, according to Colliers International Vietnam’s Quarterly Knowledge Report.