Authorities continue to sit on laws to regulate condotels: Experts
Authorities continue to sit on laws to regulate condotels: Experts
The government has yet to create a legal framework for condotels though many people are keen to buy and sell them.
Nguyen Manh Khoi, deputy head of the Ministry of Construction's department of house and real estate management, said at a recent forum that though regulations are now clearer than before, the ministry has yet to provide specific directions on how this type of property should be managed or technical specifications.
This has led to inconsistency in interpretation of regulations in different places, creating opportunities for corruption, industry insiders said.
Dang Hung Vo, a former deputy minister of natural resources and environment, said authorities are confused by the name of property segments whereas they should be focusing on their function to define them.
Vietnamese have always been using their houses for both residential and commercial purposes, and a condotel is the same, he said.
"If a condotel owner wants to use their condotel for commercial purposes, authorities can tax that business activity."
He suggested that the laws should be changed to include multi-purpose real estate, which allows owners to decide the main purpose of their asset.
Echoing Vo, economist Nguyen Tri Hieu said: "A condotel is a commercial property. All real estate and tax laws should define them as so."
The government needs to quickly complete the legal framework so that banks can accept them as collateral and buyers do not have to worry about title, he added.
Last year over 8,000 condotels entered the market in 12 cities and provinces, mostly popular tourism destinations such as Da Nang City and Khanh Hoa Province in the central region, Ba Ria – Vung Tau Province in the south and the Quang Ninh Province in the north.
Over 7,800 condotels were bought, an absorption rate of 92 percent.
