Local authorities tighten control over investments in condotels

Hanoi local authorities are seeking to strengthen management over the construction, investment and trade of condotels, officetels and resort villas.

In Binh Dinh, the licensing the projects of these kinds of property projects has stopped. 

The Hanoi People's Committee has asked the districts’ authorities to continue to strictly observe the Prime Minister's Directive No 05 dated January 2019 on enhancing the reorganization of construction planning and urban development management.

Local authorities tighten control over investments in condotels


The Department of Construction has been assigned to control and manage construction works, examine basic designs, construction designs and construction activities to ensure that the functions of the works and other criteria fit the approved plans. The department will be responsible for discovering, preventing and resolving any violations during project implementation.

The Department of Planning and Investment is in charge of supervising investors’ compliance with the laws, and strictly control the projects proposed to be converted from non-housing to housing projects in the city.

The Department of Planning and Architecture has to control the use of land and the capability to meet social and technical infrastructure needs.

The Binh Dinh provincial authorities have asked the Construction Department to implement state management over condotels, resort villas and officetel projects in the locality.

In Q2 alone, 158 new products from two projects were launched into the market (from Thua Thien-Hue to Phu Quoc), but only 20 percent were sold, just 1 percent of the figure in the same period last year.

Prior to that, in a document to the Prime Minister, the Ministry of Public Security proposed not to develop more condotel and resort villa projects in the immediate time, and not to legalize the shift of officetel, condotel and resort villa projects to housing projects.

 


The ministry pointed out that some cities and provinces such as Da Nang and Ba Ria – Vung Tau are changing the purposes of land use and granting certificates on ownership of condotels to buyers, which in effect gradually legalizes condotels and resort villas as housing projects.

According to the ministry, some ministries and branches believe that the legal framework is sufficient to manage condotels, officetels and resort villas.

But in fact, the investment, construction and management of these types of real estate are still facing many problems which cannot be solved by existing legal documents.

The purchase and sale of these types of real estate go beyond the local authorities’ management capability. Many investors have been found selling the products though they cannot meet the requirements, thus posing risks for buyers. In many cases, the developers cannot implement the commitments they made to buyers, which has led to disputes.

According to the Ministry of Construction, 92 resort tourism projects with 6,300 condotels, 197 resort villas and 46 officetels were licensed in Q2.

In the three months of Q2, 91 resort tourism projects with 19,878 condotels and 8,407 resort villas were under construction, while 12 projects with 70 condotels, 256 resort villas and one officetel were completed.

According to DKRA, a market analysis firm, in Q2 alone, 158 new products from two projects were launched into the market (from Thua Thien-Hue to Phu Quoc), but only 20 percent were sold, just 1 percent of the figure in the same period last year.

The primary sales in Q1 were 454 products, the lowest level in the past five years. Twenty out of 30 projects from Thua Thien Hue to Phu Quoc did not see any transactions in the quarter, with more than 3,300 products in stock.

This shows that the purchasing power in the condotel market is low. 

Bao An

Vietnam should not allow foreigners to own condotels: HOREA

Vietnam should not allow foreigners to own condotels: HOREA

With warnings from the Ministry of National Defence and Ministry of Public Security, the HCM City Real Estate Association (HOREA) believes that it is not the right time to allow foreigners to owns condotels and tourist villas.

Ministry proposes not allowing conversion of condotel into residential projects

Ministry proposes not allowing conversion of condotel into residential projects

The Ministry of Public Security has proposed not granting ownership certificates to allow condotels, tourist villas and officetels to be turned into residential projects.  

 
 

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