Experts warn of risks of condotel projects
Experts warn of risks of condotel projects
Buyers of condotel units are at stake since they have made their investment decisions based on what brokers have said and on their trust in project developers without obtaining sufficient information, experts told a real estate forum in Hanoi on Wednesday.
Held by the Vietnam National Real Estate Association (VNREA), in collaboration with the financial and economic television channel VITV, the 2019 Vietnam Real Estate Forum gathered leaders from the Ministry of Construction, and experts, reported the Vietnam News Agency.
According to the experts, many firms have developed tourism apartments, known as condotels, while most of their buyers have little knowledge about this segment and have not carefully read the terms of their contracts.
The Ministry of Construction has identified three major issues surrounding this segment, including its land use regime, lack of regulations on condotel ownership rights, and its operational management, according to Nguyen Manh Khoi, deputy head of the Housing and Real Estate Market Management Agency.
He said the Ministry of Construction is devising criteria for defining condotel and officetel, and more importantly, condotel and officetel management regulations. Meanwhile, the Ministry of Natural Resources and Environment is tasked with enforcing regulations on the land use regime in this segment.
Currently, there are no regulations governing the condotel segment even though condotel projects have been mushrooming in many parts of the country, especially in seaside resort towns such as Danang, Nha Trang and Phu Quoc. Therefore, condotel buyers would be at great risk of losing their money if developers do not honor their commitments. Moreover, the authorities do not issue condotel ownership certificates.
