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.
Frauds, low liquidity and tightening credit will be some of the major challenges facing the Vietnamese property sector in 2020.
Experts have pointed out a number of hindrances to SOE privatization, including weak corporate governance, valuation methods and restricted foreign ownership.
With many investors getting duped by developers, the HCMC Real Estate Association (HoREA) has proposed amending unreasonable regulations affecting the condotel segment which causes huge losses to secondary investors.
Although real-estate development projects are required by law to incorporate parks and gardens in their area zoning, many investors in Ho Chi Minh City are blatantly disregarding this.
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.
Officials, experts and firms at a real estate forum last week underscored the need to issue clear regulations on the condotel segment, VnEconomy news site reported.
Ministry of Construction (MoC) in collaboration with Ministry of Natural Resources and Environment will complete regulations relating to condotel and officetel within 2019, its Minister Pham Hong Ha said at a recent meeting of the National Assembly.
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.