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.

HOREA, reviewing sales of real estate products to foreign individuals and institutions in the last five years (2015-2020) by 17 large real estate firms, estimates that the transactions of the 17 firms accounted for 70-80 percent of total transactions with foreigners, about 14,800-16,000 products.

Vietnam should not allow foreigners to own condotels: HOREA

Of these, the top five real estate firms sold 10,500 products, or 85.7 percent of the total products sold to foreigners. HCM City attracted the most foreign buyers, with 80 percent of total transactions with foreigners.

Meanwhile, a report of the Ministry of Construction about the property market in the last 10 years (2009-2019) showed that 5,000 housing projects with 3.77 million products were built. As many as 787,000 products could be developed in each 5-year development period.

As such, if noting that foreigners bought 16,000 products in the last five years, the figure accounts for only 2 percent of total supply in the market.

HOREA said that there was no ‘wave’ of foreigners buying houses in Vietnam in the last five years.

Only high-end and modern urban areas and apartment buildings with sufficient facilities, located in advantageous positions for transport, can attract foreign buyers.

According to the association, housing project developers have been strictly following the regulation on selling no more than 30 percent of total apartments in projects to foreigners.

At projects where sales to foreigners have hit the ceiling of 30 percent, other foreigners have to sign long-term lease contracts valid for 50 years.

 
The Ministry of Public Security has also warned about management of the sale and purchase of condotels, tourist villas and officetels. Real estate developers often sell these products as they cannot meet conditions, thus raising risks for buyers.

As the real estate market has been facing difficulties because of the pandemic, the Ministry of Construction has proposed amending the 2014 Housing Law and Real Estate Business Law, increasing the number of products that foreigners can own in every apartment building, and allowing foreigners to own tourism real estate in Vietnam.

Regarding the proposal, HOREA said one should not be under the illusion that foreigners will rush to buy housing in Vietnam. Statistics show that transactions related to foreigners just account for 2 percent of total transactions.

The Ministry of Public Security has also warned about management of the sale and purchase of condotels, tourist villas and officetels. Real estate developers often sell these products as they cannot meet conditions, thus raising risks for buyers.

HOREA has said foreigners should not be allowed to buy and own condotels, tourist villas and tourism townhouses at this time. 

Thuan Phong

Condotels no longer hot, farmstays the ‘rising star’

Condotels no longer hot, farmstays the ‘rising star’

After several years of witnessing the strong rise of condotels, Vietnam’s real estate market is now seeing a new trend in farmstays.

Condotel market faces gloomy prospects

Condotel market faces gloomy prospects

 The condotel market has faced a gloomy period due to low absorption rate while inventory has been on the rise, experts said.  

 
 

Other News

.
17th CAEXPO to benefit China-Vietnam cooperation
17th CAEXPO to benefit China-Vietnam cooperation
BUSINESSicon  23/11/2020 

China and Vietnam are friendly neighbors connected by mountains and rivers, and have achieved fruitful results in the sustained economic and trade cooperation. 

More M&A deals in the banking sector next year: local media
More M&A deals in the banking sector next year: local media
BUSINESSicon  23/11/2020 

Vietnam’s equity market may witness big merger and acquisition (M&A) deals in 2021 as local banks are trying to lure foreign capital on the country’s participation in international trade deals.

Office rental rates to fall by end of year: experts
Office rental rates to fall by end of year: experts
BUSINESSicon  23/11/2020 

Office rental rates will continue to drop while supply will be in the non-central business district areas in HCM City in the coming time, according to property research companies.

'Ghost' restaurants flourish in Ho Chi Minh City
'Ghost' restaurants flourish in Ho Chi Minh City
BUSINESSicon  23/11/2020 

Without tables, chairs or waiters, "ghost" restaurants are flourishing in Vietnam, serving only online customers.

When private businesses get stronger
When private businesses get stronger
FEATUREicon  23/11/2020 

The private sector is very active in key sectors of the economy. If there is a "push", they will become an important force with other economic sectors to take the country forward.

Coastal industrial zones attractive to investors
Coastal industrial zones attractive to investors
BUSINESSicon  23/11/2020 

Vietnam’s industrial zones property located near the sea is attracting great attention to investors as they maintain high occupancy rates and rental prices, heard attendants at a conference held in Hanoi on Thursday.

Smarter logistics will benefit Vietnam: experts
Smarter logistics will benefit Vietnam: experts
BUSINESSicon  23/11/2020 

Smarter logistics are key for Vietnam to advance in the global value chain amid the fourth industrial revolution and the COVID-19 pandemic, experts told the Vietnam Business Summit 2020 held in Hanoi recently.

HCMC real estate market poised to recover next year
HCMC real estate market poised to recover next year
BUSINESSicon  23/11/2020 

The real estate market in HCMC has seen signs of recovery since August and is expected to see a strong rebound during the upcoming traditional Lunar New Year holiday and next year, according to the HCMC Real Estate Association (HoREA).

Vietnamese firms to invest in three key aspects for digital transformation
Vietnamese firms to invest in three key aspects for digital transformation
BUSINESSicon  23/11/2020 

Many companies in Vietnam are considering an approach to workplace digital optimization beyond Covid-19.

Louis Vuitton, Christian Dior join Hanoi luxury market
Louis Vuitton, Christian Dior join Hanoi luxury market
BUSINESSicon  23/11/2020 

Leasing flagship stores of Louis Vuitton and Christian Dior show stronger sentiment towards luxury brands in Vietnam.

Thousands of Mercedes-Benz recalled in Vietnam over defective airbags
Thousands of Mercedes-Benz recalled in Vietnam over defective airbags
BUSINESSicon  22/11/2020 

Some 3,200 Mercedes-Benz cars in Vietnam have been found to have problems with Takata airbags, according to the Vietnam Register.

Binh Dinh-based Phu Cat airport proposed to become international one
Binh Dinh-based Phu Cat airport proposed to become international one
BUSINESSicon  22/11/2020 

The Binh Dinh government has written to the Ministry of Transport and the Civil Aviation Authority of Vietnam proposing turning Phu Cat Airport into Phu Cat International Airport.

Vietnam, Oman to foster bilateral trade
Vietnam, Oman to foster bilateral trade
BUSINESSicon  22/11/2020 

The two-way trade turnover increased sharply from US$117 million in 2017 to US$200 million in 2019.

Ministry working to promote growth of support industries
Ministry working to promote growth of support industries
BUSINESSicon  22/11/2020 

The Ministry of Industry and Trade (MoIT) has introduced a range of measures to boost the growth of support industries in a bid to promote the engagement of local companies in production chains.

What does the 'rescue' of Vietnam Airlines reveal?
What does the 'rescue' of Vietnam Airlines reveal?
FEATUREicon  22/11/2020 

The national airline of Vietnam finally saw "the light at the end of the tunnel" when the National Assembly agreed with the Government's proposal for solutions to help Vietnam Airlines overcome difficulties caused by the Covid-19 pandemic.

HCMC’s US$12.7 billion property debt at risk of turning sour
HCMC’s US$12.7 billion property debt at risk of turning sour
BUSINESSicon  24/11/2020 

Although real estate outstanding loans are still within the safety zone, the HCMC Real Estate Association (HoREA) has warned of a possibility that they might turn sour.

New direction for Vietnamese enterprises post-Covid-19
New direction for Vietnamese enterprises post-Covid-19
BUSINESSicon  23/11/2020 

Many enterprises are now mapping out short-term business strategies of up to three years, given growing global uncertainties.

Electronics industrial clusters to be piloted
Electronics industrial clusters to be piloted
BUSINESSicon  22/11/2020 

The Ministry of Planning and Investment has instructed localities to review and report on the development of industrial zones with investment projects in the electronics industry with a scale starting from US$20 million.

VIETNAM BUSINESS NEWS HEADLINES NOVEMBER 23
VIETNAM BUSINESS NEWS HEADLINES NOVEMBER 23
BUSINESSicon  23/11/2020 

Businesses in support industries growing in quantity, quality

Real estate inventories see decline: ministry
Real estate inventories see decline: ministry
BUSINESSicon  22/11/2020 

Inventories in the real estate market have been on the decrease thanks to increasing liquidity, according to the Ministry of Construction (MoC).

 
 
 
Leave your comment on an article

OR QUICK LOGIN