Ownership certificates will be granted to condotels and officetels which meet the established regulations prescribed by the laws on land, construction and real estate business. (Photo: vneconomy.vn) This is a notable point in the Government’s Decree No10/2023/ND-CP issued early this week about amending and supplementing severalpoints of decrees guiding the implementation of the Law on Land.
The decree said that ownership certificates will be grantedproviding that the properties meet the established regulations prescribed bythe laws on land, construction and real estate business.
Owners of the construction works are responsible before law formeeting all requirements.
The regulation about granting ownership certificate for condotelsand officetels, hybrid properties that combine condominium with the option torent out units like a traditional hotel or office, was expected to tackle thelegal bottlenecks for enterprises and individuals investing in theseproperties.
The 2016-2018 period witnessed the rapid development of condotelsand officetels with a number of projects built across the country as a newinvestment wave in the real estate market. However, this segment fell intostagnation in recent years because of the legal bottlenecks in grantingownership certificates, which was not only affecting rights of both buyers anddevelopers but also inserting negative impacts on the market’s transparency, saidLe Hoang Chau, President of the Ho Chi Minh City Real Estate Association.
Chau stressed that both buyers and developers of condotels andofficetels were expected detailed regulations about granting ownershipcertificates for these properties.
Condotels and officetels are mostly located in high-rise buildingsdeveloped on commercial and service land with a maximum use period of 50 yearsor not exceeding 70 years in special cases. Unlike condominiums which are usedfor accommodation only, these hybrid properties still lacked a legality.
A report of real estate services firm DKRA Vietnam showed that thecondotel and officetel market did not see any new projects in the first twomonths of this year. The report pointed out stagnation prolonged from thesecond quarter of 2022 due to roadblocks in credit, inflationary pressure, highinterest rates and caution of investors about the legality of condotels andofficetels.
According to the Vietnam Real Estate Association, there are about239 tourism property projects throughout the country with a total of 114,000condotels worth around 297 trillion VND, nearly 24,400 resort villas wortharound 244 trillion VND and nearly 30,900 shophouses worth 154 trillion VND.This segment was estimated to total 681 trillion VND (30 billion USD)./.
VNA
