The regulations are now clearer than they were before, but the Ministry of Construction has yet to provide specific directions on how this property segment should be managed or technical specifications, Deputy Head of the Department of House and Real Estate Management Nguyen Manh Khoi said at a recent forum.
According to industry insiders, this lack has caused an inconsistency in interpretation of regulations in different places, creating opportunities for corruption.
Condotels mostly concerntrates in popular tourist attractions.
Former Deputy Minister of Natural Resources and Environment Dang Hung Vo said authorities are confused by the name of property segments whereas they should be focusing on their function to define them.
He explained that Vietnamese people have always been using their houses for both residential and commercial purposes, and a condotel is the same. He pointed out: "If a condotel owner wants to use their condotel for commercial purposes, authorities can tax that business activity."
Mr. Vo suggested the laws should be changed to include multi-purpose real estate, allowing owners to decide the main purpose of their assets.
Sharing the same viewpoint, Dr. Nguyen Tri Hieu, an economist, said: "A condotel is a commercial property. All real estate and tax laws should define them as so."
He added that Vietnamese government needs to quickly complete the legal framework so that banks can accept them as collateral and buyers do not have to worry about the title.
In 2018, more than 8,000 condotels entered the market in 12 cities and provinces across the country, mostly in famouse tourism destinations such as Da Nang, Khanh Hoa, Vung Tau and Quang Ninh. Over 7,800 condotels of which were sold, reaching an absorption rate of 92 percent.
