The Hanoitimes - The continued development of officetel and condotel without specific regulations on construction, land, finance and management could put pressure on the technical infrastructure and social infrastructure of Ho Chi Minh City.
Ho Chi Minh City People’s Committee has sent a document to the Government Office, proposing the prime minister issue regulations on officetel, condotel and resort management in order to better regulate these new products that have boomed recently, local media reported.
The demand for developing officetels is quite high because they have started to meet the needs of urban development, especially demands for office space among small- and medium-sized enterprises in the region, according to Ho Chi Minh City People’s Committee.
HCMC to propose for regulations on officetel and condotel.
However, the continued development of officetel and condotel without specific regulations on construction, land, finance and management could put pressure on the technical infrastructure and social infrastructure of the city.
Earlier, the Ministry of Construction previously submitted a report to Deputy Prime Minister Trinh Dinh Dung to propose some solutions to handle practical issues related to these property products.
Accordingly, hotel construction projects (condotels) and office combined accommodation (officetels) are not regulated by construction, real estate or housing legislation.
Meanwhile, the Investment Law of 2014 stipulates that investors are entitled to carry out investment activities if not prohibited by the law, making it difficult to manage these new real estate models, especially the application of standards for planning and design.
In an interview with Hanoitimes, Director of Savills Hotels Asia Pacific Mauro Gasparotti believed the government was working to research and provide legal basis for the condotel. He expected the media can bring the most accurate information, even the condotel warnings to investors, investors more cautious in project development as well invest in these products. Investors will need to carefully study the sales contract, select qualified investors and thoroughly understand the project before purchasing.
According to data from the Vietnam Real Estate Association (VNREA), in 2017 condotel became the brightest star in the resort real estate sector. The investment in condotel projects has accounted for more than half of total inflows into the real estate market. The supply of condotel products hit 22,837 units across developments throughout the country. The association estimated that from 2017 to 2019, around 27,000 - 29,000 new condotels would be launched on the market.