Regulations needed to manage condotels and officetels
The Government should issue regulations to ensure condotels and officetels are not used primarily as apartments because it can cause problems for urban planning and infrastructure and transport, according to the Ho Chi Minh City Real Estate Association.
There are no regulations on the number of occupants at these projects either meaning there would be unbearable pressure on infrastructure and transportation, he said.
The association suggested to the city Department of Architect Plans that the size of officetels should be 25-50sq.m while condotels should be of similar size as a room in a hotel or resort.
In terms of population, the association said it must be capped at half of that of a pure housing project.
Experts attributed the growth of condotels or officetels to the nation’s focus on boosting businesses in general, and start-ups in particular.
Apartment projects with condotels or officetels have been approved by the Ministry of Construction, but it is difficult for authorities to manage them since there are no regulations related to their planning or design.
Tran Vinh Tuyen, deputy chairman of the HCM City People’s Committee, said that condotels and officetels are new products but there are no projects with officetels only.
Condotels or officetels have seen strong growth in big cities in recent years as it has been considered an attractive investment option.
According to experts, the current cash flow to the properties is being fuelled by a combination of factors, including a rapid rise in the middle and upper middle class, which has pushed up demand for investment assets.
The Boston Consulting Group, global business consultants, has forecast that the middle and upper middle class, with individual monthly incomes of US$714 and up, would increase to 33 million in Vietnam by 2020.
Meanwhile, market research firm Nielson has estimated that the middle class in Vietnam will reach 44 million by 2020 and 95 million by 2030.
Besides, experts also attributed the growth of condotels or officetels to the nation’s focus on boosting businesses in general, and start-ups in particular. The Government has set an ambitious goal of doubling the number of efficient firms to one million by 2020.
However, experts noted that the legality of the properties has to be made clear so that their development stays on the right track and the benefits of all stakeholders are harmonised.
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