Minister of Construction Pham Hong Ha said at the meeting of the National Assembly early this week that his ministry and the Ministry of Natural Resources would complete regulations relating to condotel and officetel this year.
|Ministry of Construction will complete standards and regulations relating to condotel and officetel this year (Photo: dantri.com.vn)|
In response to delegate Ly Thiet Hanh, Minister Ha said the Ministry of Construction (MoC) was responsible for revising standards and regulations relating to condotels and officetels and also promulgating management and operation regulations for the property products.
He said this process would be completed this year. He also said the Ministry of Natural Resources and Environment would provide guidance on land use for condotel or condotel constructions incorporating housing.
Condotels and officetels have been built in Vietnam since 2005. Many businesses in the country have invested in these property products, despite the lack of a specific legal framework for condotels, officetels and resort villas.
Recently, Prime Minister Nguyen Xuan Phuc issued Directive 11 on solutions to promote a stable and healthy local real estate market, of which a legal system for condotels, officetels and resort villas is needed by the third quarter.
Specific regulations on those products are not available in many laws, including the Land Law, Real Estate Law, Investment Law and Housing Law.
From 2014 up to now, there has been a lot of investment in condotel products concentrated in coastal areas across the country.
Some 20,000 condotel apartments are expected to be sold annually in 2019-2020.
According to Nguyen Trong Ninh, Director of the MoC’s Housing and Market Management Department, condotels or resort villas are classified as tourist accommodation that is managed according to tourism regulations controlled by the Ministry of Culture, Sports and Tourism.
Accordingly, organisations and individuals trading condotels and villas must have business licences from the Vietnam National Administration of Tourism (VNAT). – VNS
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.
Despite the lack of a legal framework and phantasmagoric profit commitments, condominium-hotels (condotels) have been one of the most attractive property products among buyers.
The Vietnamese condotel market, the only one in the region, shows serious problems because of legal deadlocks.