Detailed regulations are needed to promote a healthy condotel market, which has been going off-track for years due to an unclear legal framework, experts have said.
It is also unclear as to how the construction of these kind of property was authorized, given the lack of legal framework governing it.
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.
A legal framework covering condotel properties is urgently needed to protect the rights of both developers and buyers and to ensure sustainable development.
Prime Minister has just asked the Ministry of Construction to promulgate regulations on amendments and supplements to construction standards for condominiums, condotels, resort villas, officetels and rooms for rent.
The lack of a legal framework has made it hard for local governments to approve land use plans for State-owned enterprises (SOEs) that wish to go public, thereby hampering the equitization process.
Positive signs have been seen in Vietnam’s condotel arena after two years of downturn as consumption in the third quarter of this year was reported at 86 per cent compared to below 40 per cent in the same period of 2018.
The Ministry of Construction has written to the prime minister stating that it has encountered a host of difficulties in researching and drafting a circular on regulations for developing and managing the office-tel segment, VnEconomy news site reported.
Developers and buyers of condotel segment will breathe easier later this year when the legal framework for the new type of property is issued.
Condotel developers and buyers will breathe easier later in the year when the legal framework for the new type of property in Vietnam is to be released.
Although many people are keen on condotels, the Government has yet to create a legal framework for this property segment, experts said.